Teaching young adults about credit cards is a very necessary thing to do because mistakes made with a student credit card pale in comparison to the mistakes possible when you’re an established professional. For one, the credit limit is much lower on a student credit card, making the possible debt load less. Then, should you make a late payment or default on your card, you’ll have more time to correct your mistakes before your credit is needed for a house or car purchase.
Student credit cards certainly have their pros and cons, but if used responsibly, the experience and rewards gained by credit cards can certainly help a students future. We’ve compiled a short list of the best student credit cards in the market today. All of these cards teach responsible spending while rewarding students for on time payments, good grades and responsible spending.
Best Student Credit Cards
The Citi Forward® Card for College Students – The only credit card that rewards paying on time and staying under your credit limit, the Citi Forward® Card for College Students offers students an APR reduction if payments are made on time. Earn 1,000 points after you sign up for paperless statements within the first 3 months of account opening and 100 additional Thank You points can be earned every time you make your payment on time AND stay within your credit limit. You can also enjoy a 0% intro APR on purchases for the first seven months. Finally, there is No Cosigner required and the Citi Forward® Card for College Students comes with no annual fee.
Citi® Dividend Platinum Select® Card for College Students – If rewards are of importance, the best student credit card would be the Citi® Dividend Platinum Select® Card for College Students. Cardholders will earn 5% cash back on all supermarket, drugstore, gas station, convenience store and utility purchases for the first six months, 2% on rotating categories like restaurants, apparel, hotel and more (enrollment required), and 1% cash back thereafter (including all other purchases). All Citi credit cards do not require cosigners, including the Citi® Dividend Platinum Select® Card for College Students and this card comes with a 0% intro APR on purchases for the first seven months. Finally, the Citi® Dividend Platinum Select® Card for College Studentscarries no annual fee.
Discover® Student Card – Discover® Student Card members earn a 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply*and up to 1% unlimited Cashback Bonus on everything else you buy. Like the first two cards on our list, the Discover® Student Card does not carry an annual fee. There is a 0% intro APR on purchases for 9 months included in this offer, then a variable purchase APR of 13.99%-20.99%.
Capital One® Student Rewards – The best cash back credit card on our list, the Capital One® Student Rewards card offers 2% cash back on restaurants, entertainment, cell phone bills and books and 1% cash back on everything else. Fair credit is required for approval and while there is no annual fee, the 24.9% interest rate on purchases is very high. One last benefit of the Capital One® Student Rewards card is that international purchases will not be charged a foreign transaction fee.
Orchard Bank Classic MasterCard – If you’re credit is in the dumps and you can’t obtain any type of secured credit, and Orchard Bank Classic MasterCard may be your only option. Building a credit history is very important but with the Orchard Bank Classic MasterCard, you won’t be receiving a rewards program and you will have to pay an annual fee, as well as a high interest rate on purchases. Depending on your credit history, the annual fee is between $39-$59 the first year, then $59 per year thereafter. In return you receive an unsecured line of credit. To offset the high interest rate on the Orchard Bank Classic MasterCard, make sure to pay your balance in full each and every month.
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I have the Citi Forward and the Capital One cards and love them both. Of course, I’m trying to pay my debt down on them, but they’re definitely great starter credit cards.
Great list! I sure wish I saw pros and cons of different cards when I was in college.