Students in general have minimal or no experience dealing with credit cards or other forms of credit. And so, most students have a credit history that is either thin or completely nonexistent. However, using a credit card while still in school/college provides the opportunity to understand how credit works and to learn how to use credit cards responsibly. What’s more, student credit cards are also the first step towards establishing and building good credit. And these are the reasons why every student should apply for a credit card. But with a whole lot of options available out there, it’s very important to choose the right credit cards for students.
Top 4 Credit Cards for Students
1. Discover It Students Cash Back Credit Card
This card comes with a great cash back program. You can earn 1% cash back on all purchases with no restrictions. It also gives 5% cash back each quarter in rotating categories, such as gas station or department store purchases. Additionally, Discover doubles cash back earned over the previous 12 months at the end of your first year as card holder. While this card comes with no annual fee, it also has an introductory APR of 0% for a period of 6 months.
2. Journey Students Rewards from Capital One
With a potential 1.25% cash back on all purchases, and an opportunity to gain higher credit line for making 5 monthly payments on time, this is one of the best credit cards for students. This card comes with no annual fee and no foreign transaction fee, making it a great partner both within campus as well as on the move.
3. Citi ThankYou Preferred Card for College Students
This card offers 2 ThankYou points per $1 on purchases at sporting events, restaurants, theatrical performances, etc., and 1 ThankYou point per $1 on all other types of purchases. These points have no expiry and you can redeem them for gift cards from retailers, travel rewards, or for purchases at LiveNation and Amazon. The card carries no annual fee, and comes with 0% APR for the first 7 months.
4. Wells Fargo Cash Back College Card
Featuring a 0% introductory APR for 12 months, this card offers a generous 3% cash back on gas, grocery, and drugstore purchases for a period of 6 months. While there is no annual fee for the card, the rewards gained can be redeemed in $25 increments to a linked savings or checking account. You can also redeem them for travel, retail gift cards or more.
Credit card issuers are well aware of the fact that students tend to have much lesser disposable income than others with full-time jobs. Credit cards for students therefore come with a much lower credit limit. This is the issuers’ way of restricting how much a student can spend on the card. But here’s the good news. If you use the credit card prudently, make regular payments, and build a positive credit history, the spending limit on your card is sure to increase over time. A student credit card is an important milestone in your financial journey. So make sure you pick the right one.