College students often find themselves in need of a credit card to help them build credit, cover unexpected expenses, and make everyday purchases. However, with so many credit cards on the market, it can be difficult to determine which one is the best fit. In this article, we will discuss the top credit cards for college students, comparing their features and benefits to help you choose the right one for your needs.
Introduction
Credit cards are an essential tool for managing finances in today’s world. For college students, they provide a means of building credit and gaining financial independence. However, not all credit cards are created equal. Some offer better rewards programs, lower interest rates, and fewer fees than others. In this article, we will explore the best credit cards for college students, taking into account factors such as credit history, income, and spending habits.
Factors to Consider When Choosing a Credit Card
Before we dive into the best credit cards for college students, it’s important to consider the factors that make a credit card a good choice. Here are some things to keep in mind when choosing a credit card:
Credit Score
Your credit score is one of the most important factors that lenders use to determine your creditworthiness. A good credit score can help you qualify for lower interest rates and better rewards programs.
Income
Many credit card companies require a minimum income to qualify for their cards. As a college student, your income may be limited, so it’s important to choose a card that matches your financial situation.
Fees
Credit cards can come with a variety of fees, including annual fees, late payment fees, and balance transfer fees. It’s important to choose a card with fees that you can afford.
Rewards
Some credit cards offer rewards programs that can earn you cashback, points, or miles for every dollar you spend. When choosing a credit card, consider which rewards program will benefit you the most.
Top Credit Cards for College Students
Now that we’ve covered the factors to consider when choosing a credit card, let’s take a look at the top credit cards for college students.
1. Discover it® Student Cash Back
The Discover it® Student Cash Back card is a great choice for college students who want to earn cashback rewards. With this card, you can earn 5% cashback on rotating categories that change each quarter, and 1% cashback on all other purchases. Discover also offers a unique feature called Cashback Match, where they will match all the cashback you earned at the end of your first year.
2. Journey® Student Rewards from Capital One®
The Journey® Student Rewards from Capital One® is a great choice for students who want to build credit. This card offers 1% cashback on all purchases, and if you pay your bill on time for the first 5 months, you can earn a higher credit line. Additionally, Capital One offers CreditWise, a free credit monitoring service that can help you track your credit score.
3. Bank of America® Cash Rewards Credit Card for Students
The Bank of America® Cash Rewards Credit Card for Students is a great choice for students who want flexibility in their rewards program. This card offers 3% cashback in a category of your choice, 2% cashback at grocery stores and wholesale clubs, and 1% cashback on all other purchases. Bank of America also offers a $200 cash rewards bonus for new cardholders who spend $1,000 in the first 90 days.
4. Citi Rewards+℠ Student Card
The Citi Rewards+℠ Student Card is a great choice for students who want to earn rewards on everyday purchases. With this card, you can earn 2X ThankYou® Points at supermarkets and gas stations for the first $6,000 per year, and 1X ThankYou® Point on all other purchases. Citi also offers a unique feature called Round Up, where every purchase you make is rounded up to the nearest 10 points, giving you even more rewards.
5. Secured Credit Cards
Secured credit cards are a great option for students who are new to credit and have a low credit score. With a secured credit card, you put down a deposit that becomes your credit limit. This helps you build credit while minimizing the risk for the lender. Some of the top secured credit cards for students include the Discover it® Secured and the Capital One® Secured Mastercard®.
Conclusion
Choosing the right credit card as a college student can be a daunting task, but it’s important to consider your financial situation and spending habits when making a decision. The Discover it® Student Cash Back, Journey® Student Rewards from Capital One®, Bank of America® Cash Rewards Credit Card for Students, Citi Rewards+℠ Student Card, and secured credit cards are all great options to consider.
FAQs
- Can I apply for a credit card as a college student?
Yes, as long as you meet the lender’s requirements for income and credit score.
- What is a secured credit card?
A secured credit card requires a deposit that becomes your credit limit. It helps you build credit while minimizing the risk for the lender.
- Can I get rewards with a secured credit card?
Some secured credit cards offer rewards programs, but they may not be as generous as those offered by unsecured cards.
- How can I build my credit score as a college student?
You can build your credit score by making on-time payments, keeping your credit utilization low, and avoiding opening too many new accounts.
- What should I do if I can’t pay my credit card bill?
If you can’t pay your credit card bill, contact your lender as soon as possible to discuss your options. Ignoring the problem will only make it worse.
