The beginning of the fall semester is frequently viewed as an opportunity for new beginnings and fresh begins. Students would do well to think about establishing a solid credit history at this time.
One of the most effective ways to kick-start this process is by acquiring a student credit card.
These specialized cards not only facilitate the establishment of credit but also offer rewards and benefits that can help you save money.
Here, we’ll explore some of the top options for student credit cards and their unique features.
1. Discover it® Student Cash Back
- Unlimited Cashback Match: One of the standout features of this card is the Unlimited Cashback Match from Discover. At the end of your first year, they will automatically match all the cash back you’ve earned. There is no minimum spending or maximum rewards, just a dollar-for-dollar match.
- Cash Back on Everyday Purchases: You can earn 5% cash back on everyday purchases at various places each quarter, like Amazon.com, grocery stores, restaurants, and gas stations, when activated. Plus, there’s a steady 1% cash back on all other purchases.
- No Credit Score Requirement: A significant advantage of this card is that no credit score is required to apply, making it accessible to many students.
- 0% Intro APR: It also comes with a 0% introductory APR on purchases for the first six months.
2. Discover it® Student Chrome
- Unlimited Cashback Match: Similar to the previous card, this one also offers Unlimited Cashback Match, doubling your cashback earnings in the first year.
- Cash Back at Gas Stations and Restaurants: Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. For all other purchases, you’ll receive 1% cash back.
- No Credit Score Requirement: Just like its counterpart, this card is accessible without requiring a specific credit score.
- 0% Intro APR: It comes with a 0% introductory APR on purchases for the first 6 months.
3. Capital One Quicksilver Student Cash Rewards Credit Card
- 1.5% Cash Back: With this card, you can earn unlimited 1.5% cash back on all purchases.
- Early Spend Bonus: Receive a $50 bonus when you spend $100 within the first three months.
- Uber Perks: Enjoy 10% cash back on purchases made through Uber and Uber Eats. Plus, get complimentary Uber One membership statement credits through 11/14/2024.
- No Annual Fee: This card has no annual fees, foreign transaction fees, or hidden charges.
- Referral Rewards: Earn up to $500 a year by referring friends and family when they’re approved for a Capital One credit card.
4. Capital One SavorOne Student Cash Rewards Credit Card
- 3% Cash Back: This card offers unlimited 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®). All other purchases qualify for 1% cashback.
- Early Spend Bonus: You can earn $50 when you spend $100 in the first three months.
- Entertainment Perks: Receive 8% cash back on entertainment purchases when you book through the Capital One Entertainment portal.
- No Annual Fee: Like the Quicksilver Student Card, this card comes with no annual fee and no foreign transaction fees.
5. Bank of America® Travel Rewards Credit Card for Students
- Points for Every Purchase: Earn unlimited 1.5 points for every $1 spent on all purchases, with no expiration on points.
- Online Bonus Points: Receive 25,000 online bonus points when you make at least $1,000 in purchases in the first 90 days of account opening, which can be redeemed for a $250 statement credit toward travel purchases.
- No Annual Fee: There are no annual fees or foreign transaction fees, making it a cost-effective choice.
- 0% Introductory APR: Enjoy a 0% introductory APR for 18 billing cycles on purchases and balance transfers made within the first 60 days of opening your account.
The Role of Student Credit Cards in Building Credit for Young Adults
Student credit cards are specially designed for individuals in college or graduate school. Recognizing that young adults often have limited credit history, these cards are more accessible and serve as an excellent way to establish and build credit before graduation.
They typically come with smaller credit limits, making them manageable for those new to credit.
While student credit cards often offer rewards, it’s crucial to use them responsibly. When managed correctly, they not only help you build credit but can also save you money in specific spending categories like dining, entertainment, groceries, and more.
However, it’s essential to approach credit cards with a sense of responsibility to avoid falling into credit card debt.
As you embark on your journey through higher education, consider the benefits of a student credit card and choose the one that aligns with your financial goals and spending habits.
These cards not only provide financial flexibility but also offer the potential to earn valuable rewards and establish a solid credit history for your future.
Source: US News