I’m pleased to provide you a thorough an article on the top US student credit card issuers. Prior to moving further, it is crucial to keep in mind that credit cards can be a helpful tool for students to begin establishing their credit history, but it is crucial to use them properly and make payments on time to prevent debt accumulation. Here are some of the top US providers of student credit cards with that in mind.
What is Student Credit Card?
A student credit card is a type of credit card created especially for college or university students. Compared to standard credit cards, these cards often have smaller credit limits and less rewards, but they are simpler for students to qualify for and frequently offer features that can aid in credit management and credit building.
The ability to help students establish their credit history is one of the key benefits of a student credit card. Students can build a good credit history by using credit cards responsibly and paying their bills on time. This can be advantageous when they later apply for loans, mortgages, or other types of credit.
Benefits of Student Credit Card
For college students, a student credit card can offer a number of advantages, such as:
- Building credit history : Creating a credit history is crucial for future financial endeavours like renting an apartment, purchasing a car, or applying for a loan. A student credit card can help college students do this.
- Rewards: A lot of student credit cards provide incentives for spending in the form of cashback or points that may be used to purchase gift cards, products, or travel. Students can gain extra money or save money on purchases they would have made anyhow by taking advantage of these benefits.
- Convenience: Credit cards are widely recognised and can be an easy way to pay for items, particularly when travelling or shopping online.
- Security: Credit cards provide defences against unauthorised payments and can come with extra perks like extended warranties or purchase protection.
- Budgeting: By utilising a credit card, students can keep track of their spending and establish a personal budget, which can prevent them from going over budget or racking up debt.
- Access to emergency funds: A credit card can provide you access to money in an emergency so you can cover unforeseen costs.
- Discounts: Discounts on textbooks, music streaming services, or vacation may be among the extra benefits that some student credit cards provide. These benefits are targeted to the needs and preferences of college students.
Overall, having a student credit card can help college students with budgeting, credit history development, rewards earning, convenience, security, and access to unique advantages. Students should use their credit cards carefully, though, to prevent overspending and debt accumulation. Students can position themselves for future financial success by paying payments on time and staying under their credit limit.
Disadvantages of Student Credit Card
While student credit cards may have a number of advantages, there may also be some drawbacks. These may consist of:
- High interest rates: Compared to other credit cards, student credit cards may have interest rates that are higher, making carrying a load from month to month more costly. Students should make complete payments on their outstanding obligations each month to avoid interest costs.
- Costs: The cost of using some student credit cards may be increased by annual fees, late payment fees, or other costs. To understand the fees and costs connected with a credit card, students should thoroughly read the terms and conditions of any cards they are considering.
- Overspend : Having access to credit can make it tempting for students to go over their spending limits or make purchases that are not necessary. This may result in debt accumulation and financial stress.
- Impact on credit score: A student’s credit score may be negatively affected by using their credit card carelessly. A student’s credit score can be negatively impacted by missed payments, large amounts, and other issues, which can make it more challenging for them to be approved for loans or other types of credit in the future.
List of Top Credit Cards Providers
Discover it Student Cash Back
For college students who want to accrue rewards while establishing their credit, Discover it Student Cash Back is a fantastic choice. This card offers 5% cashback on a variety of quarter-to-quarter rotating categories like petrol stations, restaurants and Amazon.com. Additionally, the card gives 1% reward on all other purchases. In addition, if the student maintains a GPA of 3.0 or above, Discover it Student Cash Back offers a $20 statement credit each year.
Citi Rewards+ Student Card
Another fantastic option for students who want to accrue rewards while developing their credit history is the Citi Rewards+ Student Card. For the first $6,000 in annual purchases, this card delivers 2x ThankYou points in supermarkets and petrol stations, and 1x points on all other transactions. The card also has a special feature that rounds up every purchase to the nearest 10 points, so a $5 coffee would receive 10 points rather than 5. Additionally, for the first seven months after account opening, there is a 0% introductory APR on purchases.
Bank of America Cash Rewards for Students
For students who spend a lot on food and petrol, the Bank of America Cash Rewards for Students card is a fantastic choice. For the first $2,500 in combined purchases each quarter, this card gets 3% reward on petrol and 2% cashback on groceries. Additionally, the card gives 1% reward on all other purchases. If the student uses the card for $1,000 in purchases within the first 90 days, they will also receive a $200 cash rewards incentive.
Capital One Journey Student Rewards
For college students who want to establish credit, the Capital One Journey Student Rewards card is a fantastic choice. If the student makes timely payments, the card’s 1% cashback on all transactions has the potential to increase to 1.25%. Additionally, the card provides a free CreditWise application that enables the student to track changes to their credit score and receive alerts.
Deserve Edu Mastercard
For overseas students who might have trouble getting authorised for a credit card, the Deserve Edu Mastercard is a fantastic solution. This card pays 1% reward on all transactions and does not require a Social Security number or credit history. The card also comes with a free year of Amazon Prime Student, a $100 Amazon.com gift card after the first transaction, and a $0 annual charge.
In summary, there are lots of excellent options for Best student credit cards in the US, but it’s crucial to pick one that matches your spending patterns and financial objectives. Students can establish their credit history and position themselves for future financial success by using credit cards wisely and paying payments on time.