student credit
Student credit cards are a type of credit card specifically designed for students. It typically has a low-interest rate and does not require the person to have an established credit history before being approved for it.
The purpose of these cards is twofold: first, they allow students to build up their credit rating, and second, they provide them with an opportunity to learn how to use credit responsibly while still in school.
This blog post discusses detailed facts about the purpose of student credit cards and how a student can build credit. We reveal the best student credit card offers currently available. As you compare offers and rewards from various financial institutions, select the one that is right for you.
A student credit card is a particular type of credit card designed for people who are in school. This card functions like other standard credit cards but has reduced credit limits and can have little to no incentives. Thus, this type of card can help with expenses that may arise during school, but it can also be used as an excellent way to build credit early in life.
Student cards are great for emergencies. You can use them to pay your rent, medical bills, repair your laptop, or fix your cracked smartphone screen, just to name a few.
This card often comes in handy, especially if you need the extra money in a hurry because something came up unexpectedly. However, it’s essential not to use it without thinking about how much interest charges will pile on.
A credit card can help buy or rent a house or an apartment. Many rental applications require collateral, and an excellent track record, so if the applicant has student debt payments, this could be an advantage when applying. Your card history can enable you to get mortgage financing in future years after graduation.
A student credit card can help students earn rewards, points, or cash back. For example, the Discover it® Student Chrome is a great option to take advantage of all these incredible benefits, such as enjoying 2% cashback at gas stations and 1% cashback for all purchases. Discover it ®Student Cash Back Credit Card gives you 5% cashback off everyday purchases like groceries from Amazon.
A credit card can help you learn to budget and be financially responsible. This is an excellent opportunity for young people who might not have any experience managing their finances before. A credit card with a low limit and low interest can help a student become financially responsible.
A student credit card can help build a history of responsible use, which may be reported to the credit bureaus and used as evidence that you are worthy when applying for higher limits or cards with different benefits. The following tips can help you successfully build credit:
It’s hard to get recognized for your excellent payment history when you’re renting. ERentPayment and other services help make sure that rent payments are reported, which means more credit on file.
To build a strong credit history, you must pay off your balance fully on time and with no increases or delays. This will show lenders what kind of person they are dealing with. By showing reliability and ability to handle debt, they might offer future deals down the road!
To build credit, you must avoid opening multiple accounts at once. Your “new” account may influence another portion of your overall score and make people with brief histories riskier than those with long records but fewer cards. Besides, it’s easier to build one account than to create multiple accounts.
If you’re looking for a way to build good habits and improve personal responsibility, then becoming an authorized user in the household could be just what’s needed. Authorized users can make purchases using their parent’s cards as if they were theirs. Even though the account is not in the student’s name, as an authorized user, it will be reported to the credit bureaus.
Most student cards have no annual fee and they usually offer rewards or discounts to entice you to choose their card. Their hope is to win your business so that as you continue in the work force, you will continue with that financial institution. Following is a list of credit card offers designed for students.
The Discover It Chrome Card is one of the best cards available for students. They are currently offering a Double Cash Back Award. That means they will double all your cash rewards at the end of your first year. If you earned $105 in rewards they will automatically double it to $210!
No annual fee is charged for this card. Additionally, you will earn 2% cash back for gas and restaurant purchases up to $1000 each quarter. All other purchases earn a 1% cash back reward.
Good grades are rewarded by Discover. There is a $20 cash back award for maintaining a 3.0 GPA every year for 5 years. In addition, there is no over limit fee and no late fee on your first missed payment. The introductory rate of 0% on purchases is good for 6 months, then 13.24% to 22.24% thereafter.
Bank of America offers 3 student credit cards bearing the Visa logo. All of them come with no annual fee. Their basic student card comes with an APR of 11.24% to 21.24%. In addition to their basic card, they offer both travel and cash rewards cards.
This is a great program for travelers. For every $1 purchase, you earn 1.5 points towards travel rewards. They are good for any airline or hotel and many other vacation options with no dates blacked out. If you have an active checking or savings account with Bank of America, you will receive an additional 10% in bonus points on every purchase that you make. Interest rate is 15.24% -23.24%.
This Bank of America card offers 1% cash back on every purchase. At a grocery store, the cash back reward is 2% and gas purchases give 3%. The gas and grocery charges are combined for the first $1500 each quarter. The introductory rate on this card is 0% for the first 12 months and 13.24% to 23.24% thereafter. This card is great for making everyday purchases.
The Citi Thank you Preferred Card for students is another great option many have chosen. When you spend $500 in the first 3 months, you will earn 2500 bonus points and you earn 1 point for every dollar you spend and 2 “thank you” points for dining and entertainment purchases.
Points can be redeemed at many retailers, Amazon, travel, tickets and much more. There is no expiration and no limit on the points. Interest rate is 0% for 7 months (introductory) and 14.24% to 24.24% after that.
The Wells Fargo Cash Back College Visa Card is another card with no annual fee that allows you to earn rewards of 3% on purchases of gas, grocery or drugstore for the first 6 months. 1% cash back is earned on other purchases. This is an actual cash reward which can be deposited in your Wells Fargo account or you can request a paper check. Awards will be received in $25 increments.
The Capital One Journey Card is one frequently chosen by students. This is another rewards card that gives students 1% cash back on all purchases. Each month that you pay your bill on time you will increase your rewards to 1.25%.
There are no limits on rewards and no expiration. Another great feature of this card is that you can choose the payment date that suits you best. Also, when you have achieved 5 on time payments, you will be eligible for a credit line increase. Interest rate is at 20.24%.
If you are trying to obtain a card without assistance from your parents, this card may be a good place for you to start. No annual fee is charged and you will probably qualify even if you have a limited credit history.
You will receive 1% cash rewards on purchases and 1000 bonus points for your first purchase. It is a basic card but a good one that comes with smart chip technology for your protection.
Another option for the college student is the Bremer Bank College Rewards Visa card. It too offers no annual fee and a 1% reward point for every dollar spent. You will receive 1000 bonus points when you sign up and the APR is 11.99% to 20.99%.
As with the Comerica card and the Journey card, it is a basic, no frills credit card to cover the needs of the student. a similar card is the East West Bank College Reward card.
This is another basic card that is offered by the U.S. Bank. The interest rate is 12.24% to 21.24% with no annual fee. It offers zero fraud liability so if you lose your card or if it is stolen you will not be liable for the purchases made at that time.
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