Most students need financial assistance when they go to college or university, which is why student credit cards can be very helpful.
There are many reasons why a student should have a credit card. One of them is that it can prepare them for more valuable credit offers in the future.
However, a credit card is a major step and students do not want to get in over their heads. With the right credit card, students will have more financial success.
Choosing which credit card to apply for is a major decision. Since there are so many to choose from, it is only natural for a student to feel overwhelmed.
To make this decision a lot easier, we have narrowed down the selection to find the 3 best credit cards for students.
Why Students Should Have a Credit Card
Every young adult should have a credit card because they are a financial building block for the future. Besides that, there are some financial advantages to having a little plastic in the wallet – click here for more thoughts on this.
- Student credit cards have a lower limit and encourage students to use them responsibly. If they are responsible, they can build good credit early.
- Another important reason why a student should have a credit card is for emergencies. You never know when something might go wrong with your car or computer.
- Students can also track their spending with a credit card, which could lead to better habits later in life.
The 3 Best Credit Cards for Students
Students have a lot on their plates. The last thing they have time to do is compare all of the different credit cards available to them.
So, we looked for those with low interest rates, appropriate credit limits, and no annual fees. This is what we found:
- Discover It Student Cashback
- Bank of America Cash Rewards Credit Card for Students
- Deserve EDU Mastercard For Students
Discover It Student Cashback
This credit card is a popular choice among college students because of all the perks that it offers.
As a way to entice students to stay in school, all cardmembers who maintain a 3.0 GPA will receive a $20 to their statement each year for up to 5 years. If they want to earn more free money, they will get $50 every time they refer a friend.
Many students have difficulty meeting their minimum monthly payments. With the Discover It Student Cashback credit card, there is no penalty and it won’t affect the student’s APR if they miss a payment.
During the student’s first 6 months, there will be no APR rate. After that, the rates vary between 12.99% and 21.99%. There is no annual fee to maintain this credit card and students can receive 5% cashback on up to $1,500 of spending.
Students earn 5% cashback on everyday purchases that they receive quarterly. They also earn 1% cashback on all other purchases. Discover’s sign-on bonus for students is that they will match their first year’s cashback. If a student earns $100 cashback, they will match it so the student gets $200.
This card is very easy for students to manage. If they misplace their card or make an unintended purchase, there is an automatic Freeze It, which can prevent purchases and bank transfers from going through.
Bank of America Cash Rewards Credit Card for Students
Some students are interested in a card that they can carry on with them after graduation.
For students who are planning on doing some back-to-school shopping, this is the right card to apply for. All new cardholders get $200 in cash rewards as a welcome bonus when they spend $1,000 within their first 90 days of opening the account. This card also offers several options for cashback opportunities.
Every cardholder can choose an eligible shopping category to earn 3% cashback on. When they use the card at grocery stores or wholesale clubs they will get 2% cashback and 1% cashback at other places.
Since there are many options for the 3% category, cardholders can change it at any time. Some of the options include:
- Drug Stores
- Online Shopping
- Home Improvements
All new cardholders can take advantage of a limited-time 0% APR offer. Once that expires, the APR varies between 13.99% to 23.99%. There is also no annual fee for the Bank of America Cash Rewards Credit Card for Students.
Deserve EDU Mastercard For Students
The Deserve EDU Mastercard For Students offers great financial opportunities for both national and international students. Unlike many other credit cards, this one is relatively uncomplicated which makes it easier for new cardholders to figure out.
While many credit cards have welcoming bonuses to draw in new customers, this one offers students something they could really use. After spending $500 (which must be done within the first 3 billing cycles), students receive one year free of Amazon Prime Student. They also have a refer a friend program, where students can earn $30 for every person they refer.
Students can travel using this card without worry because there are no international transaction fees. It is also one of the easiest credit cards for international students to obtain.
Deserve EDU Mastercard For Students doesn’t require international students to provide a social security number.
Another reason why students prefer the Deserve EDU Mastercard For Students is because it offers useful benefits. One of the best is a cell phone protection plan of up to $600.
Like most student credit cards, there is no annual fee with the Deserve EDU Mastercard For Students. However, there is a variable APR with an average rate of 18.74%.
There are a lot of financial aspects that need to be considered when a student is getting ready to go to school.
On top of tuition, students also need to cover their books, transportation, rent, and everything else. Many students have a school schedule that’s so full that they can’t balance a job on top of their classes.
Student credit cards provide them with another option so they can take away some of the financial stress and get back to what’s truly important—their education.