Best Student Credit Cards
I obtained my first credit card as a college student. It was a Citi card which I can’t recall, but I do remember it didn’t provide rewards. I also can’t forget a college buddy who applied for a credit card during a rainy football game for the free (dry) t-shirt signup bonus. Fortunately, things have changed a lot since. Individuals now have the opportunity to earn noteworthy credit card rewards at a relatively young age. Today, I’m covering a few of the best student credit cards and why teens should consider each as they start their credit card rewards journey.
Discover it Student Cash Back Card
Not surprisingly, this Discover student card is very similar to the “normal” Discover it Cash Back card. It offers 5% cash back in a rotating list of categories every quarter. For instance, the student version is currently giving 5% cash back on restaurant and wholesale club purchases, up to $1.5k spent. All other spend earns 1% cash back. But Discover matches all cash back earned at the end of the first cardmember year. This effectively makes the card a 10% cash back card in the bonus categories and 2% everywhere else for year one. Cardmembers can redeem in a variety of ways, including PayPal and other online stores, but just cashing out is probably the best choice for most.
Chase Freedom Student Visa
The Freedom Student cardholder earns a $50 bonus after the first purchase within three months of account opening. Easy money! Cardholders in good standing receive a $20 bonus at each account anniversary for the first five years. Unlike the “regular” Freedom products, the Freedom Student card only earns 1% cash back everywhere. For those looking to redeem now, cashing out is probably the best play. But here’s why a cardholder may want to wait.
Similar to the other Freedom products, cash back is earned in the form of points. Cardholders can redeem 100 points for a $1 cash back. But if they obtain an eligible Chase card in the future, like the Sapphire Preferred, those points can be transferred to the other card for superior redemptions. Another benefit of holding this card is building a relationship with Chase. Establishing oneself as a reliable customer in good standing can play into future approval decisions with Chase. And many consider Chase cards to be the best cards to obtain first, given their stringent 5/24 rule.
Bank of America Travel Rewards for Students
The first item that stands out on the BoA student card is its welcome offer – 25k bonus points after spending $1k in the first 90 days. That alone is $250, but BoA limits redemptions to travel and dining purchases made with the card. The card earns 1.5x points everywhere, too.
The card offers a 0% intro APR for the first 18 billing cycles, but I consider this a possible weakness more than a benefit. Younger individuals still learning the aspects of credit and looking to take advantage here could be tempted to make less sound decisions. (Of course, I know they have the freedom to make poor decisions on cards not offering 0% APR, as well.)
Best Student Credit Cards – Conclusion
With these cards, younger individuals are offered a similar variety of nuanced card benefits as adults – welcome offers, quarterly bonus categories, 0% APR, etc. Students have more options here than I ever did. I’m sort of jealous and wish I could start all over from the beginning!
And to that point, there’s something else that young ones (or more accurately, their parents) can do to be even more ahead of the game. A child can become an authorized user on an adult’s credit card account at age 13. With appropriate supervision, children can effectively start building credit and learning the points game at a relatively young age. And when it’s time to apply for a student credit card, they’re even more ready!
What do you think is the best student credit card?
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