A lot of people are critical of them, but the truth of the matter is that student credit cards are one of the best ways for young adults to establish their credit. Building a solid credit history will make it easier to borrow money down the road… whether it be for a car, a home, or graduate school. Plus, good credit often makes it possible to borrow at lower interest rates. The top 3 myths about credit cards for college students:
- Myth #1: Student cards are out to get you. As with any type of credit, if used recklessly it will lead to problems. But the bottom line is that if you pay your balance in full each month, there won’t be any interest to pay.
- Myth #2: You need to carry a balance to build up your credit. What’s reported to the credit bureaus is your card’s balance at the end of a billing cycle (when the bill is issued). That means you do not need to carry a balance to build up your credit history. The amount due on the bill will still be reported whether you pay it in full or not. So pay your balance in full and avoid interest altogether.
- Myth #3: They don’t offer rewards or worthwhile benefits. It's true that most do not, but the best credit cards for college students will give great rewards as well as other valuable benefits.
Discover Student Card
What's so unique about this is that it's the student version of the popular Discover More card. It gives you the same popular rewards but unlike the original, students with limited credit history can qualify. However if you have absolutely zero credit history you might get denied (so if that's you, go for the card underneath this because many students without credit history have gotten approved for it).- You get 5% in categories which change throughout the year. Examples include gas stations, clothing stores, restaurants, fast food and more.
- On all other spending you earn 0.25% to 1.00%. You get 0.25% on the first $3,000 spent per year and then 1.00% for everything after that. The year starts when you open the account and resets on the anniversary date.
- Earn 5% to 20% cash back at the top online stores through ShopDiscover. There are almost 200 online retailers participating such as Urban Outfitters, Walmart, iTunes, Apple Store, Target, Foot Locker, Groupon, American Eagle, Gap, Eastbay and tons of others.
- Choose from dozens of designs, like vintage mix tape pictured above
- No annual fee
Citi Forward Card for College Students
Not only is this one of the top student cards from Citi... it's arguably one of their best credit cards ever. Why? Because it gives you 5 points per dollar on restaurants, fast food, music stores, movies (both theaters and rentals), and bookstores. Benefits include retail purchase protection, extended warranty coverage, travel accident insurance, collision damage waiver for eligible car rentals, and decent interest rates considering it's a student credit card.- No cosigner required
- 100 ThankYou Points each billing period that you pay on time and stay under your credit limit
- APR reduction on purchases when using credit wisely
- Earn 1,000 points after you sign up for paperless statements within the first 3 months of account opening
Discover Open Road for Students
Gas prices suck, right? Well with this credit card they are slightly less-sucky, because it gives you a full 2% cash back at gas stations. Think about it… that’s like saving 8 cents/gallon when the price is $4.00. And like the other Discover card mentioned above, with this one you also have the opportunity to earn 5% to 20% off at nearly 200 online retailers through ShopDiscover.- No annual fee
- You get a full 2% cash back on up to $250 in combined spending at gas stations and restaurants each month. For beyond that amount you still earn the regular cash back (same as you get on other purchases).
- Other purchases earn 0.25% to 1.00% cash back. Same deal as the other Discover... 0.25% (1/4%) on the first $3,000 spent annually and 1.00% on everything beyond that amount.