Why choose the best credit card for students?
One may wonder why students should own credit cards while in school. How must a young adult benefit from the best credit card reward program curated for the students? But for long students have incentivized their grades and performances with the best credit card service. Best credit cards for students, in their unique way, aid in procuring long-term credits for the budding young professionals. For students, the best card to have, unlike other best credit card rewards, may not offer a sign-up bonus. Further, the best credit card student needs much less credit and also a lower credit limit. The best credit card rewards and schemes are designed specifically to suit the students’ needs and lifestyles and for their traveling. Credit cards are much safer than debit cards and the best way to build credit while in school. So score good grades and build your credit!
What is the best credit card for students?
An early introduction to the best credit card with benefits allows students to develop good spending habits, incentivize their scores and grades, and build credits for their future. Many best credit card issuers, including Citi, Discover, and Chase, offer cards having little to no credit history, specifically catered to the students. So it is advisable to choose the best credit card service and build a secure foundation with increasing credits. However, it is crucial to learn and choose from the best offers, keeping in mind federal restrictions on credit card issuance for youngsters below 21.
The main features of the best credit card to apply for:
APR – or the Annual Percentage Rate. It is the interest chargeable on the balances carrying on monthly.
Credit limit – The maximum dollar amount a holder can charge at any point in time. The credit limit for most cards is $1000 or less.
Best credit card rewards – include cashback, reward points, and sign-up bonuses. Cashback is a percentage amount of the charges or expenditure made that is credited back to the account. Rewards points are redeemable for travel, gift cards, shopping, services, and others.
Student School Fees –
- Annual fees – Most cards do not require yearly fees, but many rewards cards may usually charge a $50-$500 annual fee.
- Balance transfer fees – these fees can be 3%-5% or $5-$10 during balance transfers.
- Foreign transaction fees – a charge of 3% that can affect foreign travel plans for Spring Break or studies.
- Convenience fees – charged by the merchant on occasions. One can end up paying about 3% for tuition through a credit card.
- Penalties – if minimum payments are not met timely, customers and cardholders may experience high-interest rates on these penalties.
Best credit card young adults can choose from
Out of a wide range of best credit card for students, some have been highlighted in the following sections upon a close inspection of their offers, benefits, and disadvantages. Firstly, the Discover it® Student Cash Back is often the best for everyday spending. This card has boosted quarterly rewards, which can even include rewards for gas and groceries. The card offers the good grades rewards program, where you can earn a $20 statement credit on an annual academic basis if your GPA is 3.0 or higher for the coming 5 years of school. However, to get the boosted rewards, you will have to sign-up every quarter of the year, and you will not even receive any sign-up bonus for the same.
The Deserve® EDU Mastercard for Students offers some unique credit card reward program. A One year Amazon Prime Student subscription for $500 in the first 3 billing cycles, a perfect feature to buy textbooks from Amazon. This is also a huge plus for online shopping. The Deserve EDU Mastercard comes with no annual fee, no foreign transaction fees, price protection, travel assistance, ID theft protection, and an extended warranty.
Finally, the students receive rewards by the Journey® Student Rewards from Capital One® with 1.25% cashback for timely payments. This helps develop nice spending habits for youngsters. The card also comes with no annual fee and no foreign transaction fee, making it a perfect option for a semester of new experiences abroad. As the name suggests, the Journey Students Rewards is the best credit card for incentivized education and travel plans. Nevertheless, an independent income source is imperative for students below 21 due to the Credit CARD Act of 2009.