Student credit cards are a good way for graduates and undergraduates to safely build a credit line, which will affect what kind of loans they can get in the future, especially student loans for tuition and college life. Student credit cards also offer a lot of rewards for purchases that are made, including money back. Some cards even reward students for maintaining a certain GPA, as well as paying their bills on time.
However, a credit right that fits one's lifestyle and finances should be researched carefully, and comparison shopping is essential when trying ti avoid the fine print.
Here are a comparison of a few credit cards to show which ones provide the lowest rates and the best rewards.
DISCOVER IT STUDENT CARD
The Discover It Student Card offers a lot of rewards, and has a 0% APR for the first 9 months after signing up, and there is no annual fee to own the card. However, after the 9 month grace period, there is a monthly interest rate of 12.99-18.99% APR. Graduates and undergraduates can receive 5% money back on purchases that are made in categories, which rotate every three months. Purchases that fall outside these categories guarantee a 1% cash back.
Discover It won't penalize students for being late on their first payment, nor will paying late increase the percentage APR later on. Discover It even allows students to choose their payment due date online or on their phones, making it easily accessible for students to properly balance their finances and their monthly budget.
JOURNEY STUDENT REWARDS FROM CAPITAL ONE
The Journey Student Rewards credit card from Capital One starts with a 19% APR each month, but there is no annual fee for owning the card. Late payments incur an additional thirty-five dollars, and will also increase the rate of APR for each late payment.
However, the Journey Student Rewards credit card does provide financial rewards on purchases. The student can receive 1% cash back on all purchases he makes, including textbooks, gas, and food. He can also receive an additional 25% bonus cash back each month when his credit card bill is paid on time. That can save a student a lot of money, if he is diligent in making payments. Cash backs can be returned to students as checks to be spent any way they want, or it can be applied as a credit back to the account, generating even more money for the student's finances.
Students can be notified by email or text alerts, if any problems connected to their accounts arise.
CITI FORWARD CARD FOR COLLEGE STUDENTS
The CitiForward Card also starts at 0% APR for the first seven months, and then students are liable for 13.99-23.99% APR per month, depending on the creditworthiness. However, it is possible for students to reduce their purchase APR by 2% if they stay under the credit limit and pay on time for three billing periods in a row.
In addition, the CitiForward Card also rewards ThankYou points for doing certain things. For example, a student can earn 1000 ThankYou points for signing up for paperless statements within three months of opening the account, 100 bonus ThankYou points for each billing period he remains under his credit limit, or 5 ThankYou points for each $1 spend on purchases. These points can be redeemed for almost anything, such as credit statements, rebates for student loans, donations to charity, or to make any personal purchases he wants.
Students are also free to choose their payment due date, they are not held liable for unauthorized purchases, and account alerts can be delivered directly to students' phones.
BANKAMERICARD FOR STUDENTS
The BankAmericard for Students presents students with an introductory APR of 0% for the first fifteen months, before they are charged with 10.99-20.99% APR. Payment dates are fixed, so students are always aware of when they should be making payments, and students have access to mobile alerts so they can keep a close eye on their finances.
However, there are no rewards for signing up or using the BankAmericard, and late payments incur a late fee, as well as a large increase of the APR rate.
In comparison, the Discover It seems to be the best credit card available to students, given the benefits that can be reaped simply by using the card. Their cash back bonuses also encourage students to make payments in a timely manner, without penalizing them for making late payments.