What to Look for in a Student Credit Card

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What to Look for in a Student Credit Card

Discover, Chase, Bank of America, and Capital One are all examples of credit card companies. If you’re looking for a student credit card, you have a number of options. To pick the best card for you, consider the fees, annual percentage rate (APR), eligibility restrictions, and benefits offered by each card. You may make an informed selection by examining this student credit card information.

Key Takeaways

  • Many major credit card companies, including Bank of America, Chase, and Discover, provide student credit cards.
  • A student credit card, which is easier to get than other credit cards, may help you develop credit while you are still in school.
  • Some student credit cards may provide additional perks such as incentives or travel insurance.
  • Annual percentage rates (APRs) and fees on student credit cards are often high.
  • Card issuers have different eligibility restrictions.

How Student Credit Cards Work

Student credit cards are similar to ordinary credit cards in that they are designed exclusively for young people who are presently in education and working toward a degree. They are, however, typically simpler to qualify for, making them a viable choice for students who are just beginning to develop their credit.

What Student Credit Card Information to Consider

There are several student credit cards available nowadays. When weighing your alternatives, keep the following aspects in mind:

1. Annual Percentage Rate (APR)

Unfortunately, the APR on certain student credit cards may be rather high; rates well into the double digits are frequent. A higher APR will cause additional interest to accumulate if you do not pay your amount in full each month, making it more difficult to pay off your debt.

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So, if you anticipate carrying a load due to a large anticipated cost, opt for a card with a lower APR.

2. Fees

Some student credit cards include hidden costs, such as yearly fees or account creation fees. There are several no-fee cards available, so there’s no need to squander money on one that charges additional fees, particularly if you’re a college student on a tight budget. For example, the Deserve EDU Mastercard for Students has no annual, setup, or monthly maintenance costs.

3. Applicant Requirements

The qualifications for applicants differ depending on the card issuer. To qualify, you must be at least 18 years old, have a Social Security number, and either have your own income or a cosigner with a dependable income.

The majority of credit card companies require applicants to be current college students. They may need evidence of enrolment, as well as your estimated graduation date. That restriction, however, does not apply to all issuers. For example, the Capital One Journey Student Credit Card does not need evidence of enrollment, so you may be eligible even if you are not enrolled in college.

4. Rewards

Some student credit cards allow you to earn points on certain purchases. For example, the Bank of America Travel Rewards for Students credit card earns 1.5 points for every $1 spent. Points may be redeemed for statement credits, which can be used to pay for flights, hotel stays, rental vehicles, or baggage fees.

Cash back, points, and airline miles are the most prevalent types of credit card incentives. If you want a rewards card, search for one that delivers incentives you’ll really use; for example, a cash back card may be more beneficial than one that offers airline miles. You might put your earnings back towards textbooks and other school-related expenditures.

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5. Spending Categories for Rewards

While some cards provide points on all purchases, others only in certain spending areas, such as petrol, grocery, or restaurant meals. If you value rewards, be sure you can earn them on the kind of purchases you make on a regular basis. Otherwise, it may be preferable to opt for a card with a fixed rewards rate on everything.

The Chase Freedom Student Credit Card is one possibility. It offers 1% cash back on all purchases with no limit on how much you may earn.

6. Eligibility for Cards After Graduation

What happens to your account after you graduate differs depending on the card issuer. Some card companies may ask you to apply for a new credit card, but others will quickly switch your student account to a normal card.

Look for a card that will graduate with you for the easiest transition. After graduation, cardholders of the Discover it Student Cash Back Credit Card, for example, will obtain the Discover it®Cash Backcredit card.

Note

If you are unable to get a student credit card, a secured credit card may be a possibility.

The Bottom Line

There are several student credit cards available, so it is worthwhile to spend some time studying the various alternatives and considering how you want to use the card. You can choose the finest student credit card for you by concentrating on your spending patterns and budget.

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