Being a young adult comes with new experiences and responsibilities. One of the biggest responsibilities that you will face as a college student is managing your finances. One of the best ways to do so is by getting a student credit card. This tool will allow you to build your credit score, ultimately setting you up for success in the future.
In this article, we will discuss the top student credit card options currently available in the market that offer rewards and have low fees, making them ideal for building credit scores.
1. Discover it Student Cash Back
Discover it Student Cash Back is a credit card that is specifically designed for college students. It has no annual fee, no late fee for the first missed payment and no over-limit fee. This credit card offers a 0% APR for the first six months, which means that if you pay your balance off in full each month, you will not accrue any interest charges.
Moreover, Discover it Student Cash Back offers a rewards program that allows you to earn 5% cashback on categories that change every quarter, such as dining, gas stations, and Amazon.com. Additionally, you earn 1% cashback on other purchases, which is a great way to start earning rewards while building your credit score.
2. Journey Student Rewards from Capital One
The Journey Student Rewards from Capital One is another excellent credit card option. It offers unlimited rewards of 1% cashback on all purchases, with an additional 0.25% cashback bonus on each statement when you pay on time. The card is fee-free, so you won’t have to worry about spending too much money on fees while you’re building your credit score.
If you are new to credit cards, the Journey Student Rewards’ features make it an excellent starting point. After five on-time monthly payments, the card provides a credit limit increase, which can help you build a good credit score in the long run.
3. Bank of America Travel Rewards for Students
If you’re looking for a student credit card that offers travel rewards, Bank of America Travel Rewards for Students is a great option. It offers a sign-up bonus of 25,000 points after making $1,000 in purchases within the first 90 days of opening the account.
With Bank of America Travel Rewards for Students, you earn unlimited 1.5 points for every dollar spent on purchases. Additionally, there is no annual fee and foreign transaction fees, making this a great option for students who enjoy traveling or who plan to study abroad.
4. Citi Rewards+ Student Card
If you’re searching for a student credit card that not only earns rewards but also rounds up points on every purchase, Citi Rewards+ Student Card is the perfect option for you. Another benefit of this credit card is that there is no annual fee and APR that ranges from 13.49% to 23.49%.
For every purchase made, Citi Rewards+ Student Card rounds up points to the nearest 10 points, making this credit card a perfect option to earn rewards more quickly. Additionally, the card offers 2x points at supermarkets and gas stations for $6,000 in purchases per year, and then 1 point per dollar thereafter.
FAQs
1. What is a student credit card?
A student credit card is a specific type of credit card that is tailored to college students or young adults. The credit limit is typically lower than other cards, allowing students to build their credit score without taking on too much debt.
2. How do I qualify for a student credit card?
To qualify for a student credit card, you must be a college student with a good or fair credit score. Most credit cards for students will allow you to apply with a limited credit history because the lenders understand that students have a limited credit history.
3. How do I build my credit score with my student credit card?
Making on-time payments every month is the best way to build your credit score. With each payment, you’ll be demonstrating to lenders that you can responsibly manage your credit. Additionally, using your credit card only for small, manageable purchases can prevent overspending and help you pay your balance off each month.
4. Can I still qualify for a student credit card if I don’t have any credit history?
Yes, students with no credit history can still apply for student credit cards. However, the credit limit may be lower than what you would receive with a traditional credit card. Alternatively, starting with a secured credit card or a credit card that requires a cosigner can help you build your credit history.
5. Should I pay off my balance in full each month?
Yes, paying off your balance in full each month is essential to building a strong credit score. By doing so, you’ll show that you are responsible and can handle credit. Moreover, unlike with interest rates, you won’t have to worry about any finance charges accrueing or growing.
Conclusion
Managing a credit card may seem overwhelming. However, using it correctly and responsibly is an effective way to build your credit score and prepare for future loans. These four student credit cards are ideal options for college students looking to build their credit score through rewards, with low or no annual fees, and benefits that will meet their unique use cases. Find a card that matches your lifestyle, and start building your credit score today.
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