A student credit card is a great way to build credit while in college. While you are in school, your GPA and credit score are important numbers to keep track of. You can find the best student credit cards that fit your needs and help you build credit. You can get the credit you need to be able to borrow money and open credit cards. To get started, read our guide to the best student credit card.
Students get the best credit cards
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- Highest cash-back card for students: Discover it(r) Student Cash Back
- Restaurants and gas stations: Explore it(r). Student chrome
- No credit history is required and cash back
- Cashback and Amazon(r), Prime Student: Students Deserve an Edu Mastercard
<li">Bonuses and travel: Bank of America (r) Student Travel Rewards Credit Card
<li">Cash back and bonus: Bank of America (r) Customized Cash Rewards Credit card for Students
- Unlimited cash back from Capital One Student Rewards
- Cash back: Chase Freedom(r) Student credit card
- Unlimited cash back: Capital One Quicksilver Student Cash Rewards Credit Card
- Dining and entertainment cash back: Capital One SavorOne Student Cash Rewards Credit Card
What is a student card?
A student credit card can be used for students. Student cards are more flexible than other credit cards in that they have lower credit scores and income requirements. You may also be eligible for benefits that are tailored to students such as bonuses for good grades and rewards for keeping your grades up. Many student cards also offer travel rewards or cash back as well as purchase rewards. Some cards may include a welcome bonus.
A student credit card is approved with little credit history, unlike a regular credit line. Student cards are often the first credit card for many people. Card issuers know this. To be eligible for any credit card, even a student card, you must have income. You can have income from your job or money from scholarships and grants. A cosigner is required for anyone who wants to obtain a student credit card without income.
Unsecured credit cards can also be used for student cards. You don't have to make a deposit in order to open a student credit cards account. A secured credit card, however, will require you to make a deposit in order to protect your credit line. A secured card can be a great tool to build credit but this gives student cards an advantage when comparing secured credit cards.
It is important to remember that student cards are often unable to perform non-purchase transactions such as a balance transfer and cash advance. This is a positive thing. It will help you avoid falling into debt before you get comfortable with credit. A college student credit card can be used as a learning tool or as a payment instrument.
What is the process of a student credit card?
You can borrow money from a credit line to purchase a product and then repay what you borrowed. The maximum amount that you can borrow from the bank at one time will be the credit limit on your card.
Imagine, for example, that you have a $500 credit limit on your student credit card. You spend $100 on textbooks and $50 on school supplies. This leaves you with 350 credits.
Your monthly statement will be issued by the card company after the month's billing cycle has ended. It will include all purchases made in the previous statement cycle as well as your end balance. This will show you your minimum payment and the due date of your bill.
The minimum payment required is the minimum amount that you must pay to your credit card company in order to avoid late fees. This fee is usually a small percentage of your total balance (2%-3%) or a flat fee, which can be $25 or $35 depending on the higher. Your account will be in good standing as long as you pay the minimum amount.
If you make a minimum payment, interest will be charged on all purchases. The APR of your credit cards will determine the interest fees. This information can be found in your card's terms. You can avoid interest fees by paying your entire statement balance in full before the due date.
How to compare student credit card offers
Many of the best student credit cards have many of the same features. These are the standout features to look for when comparing credit cards.
- There is no annual fee However, some cards have an annual fee to keep your account open. An annual charge is worthwhile for certain cards. However, it's better if you start with a credit card that doesn't have an annual fee. This will save you money and allow you to keep the card open for as long as you want, even after you upgrade to a higher-rewards credit card.
- Credit bureaus report account activity: In order to build credit, your payment activity from your credit card must be reported to the 3 major bureaus. This should be done automatically for most student cards.
- A good grace time: The grace term is the time that you have to pay off your credit card balance before you are charged interest. A majority of student cards will offer a grace period that lasts at least 21 calendar days after the end of your statement period. To find out if a card offers an interest-free grace, read the terms and conditions.
- Credit score tracking It's much easier to build credit when you can track your progress. Many student credit cards offer score tracking and monthly credit scores for free.
- Reward Cards: Savings on purchases can be made with a good rewards card. Best student credit cards offer rewards and cashback points on everyday purchases such as gas and dining APR Offers: Many credit card offers come with Intro APR rates that offer a 0% interest rate for a promotional period. An APR offer that allows you to avoid interest for a few months could be helpful if your student income is dependent on biannual scholarships or quarterly grants. To avoid late fees, make sure you pay at least the minimum monthly payment.
- Foreign transaction charges: You may need a card that doesn't charge a foreign transaction fee if you plan to study abroad. Foreign transaction fees are charged to your card for purchases made in foreign currencies. These fees can add up quickly over the course of a semester.
Consider extras such as customer service or bonuses for good grades if you are still deciding between two cards. If you are looking to make payments and check your balances on the move, a student credit card may be an option.
How to get the most out of your student credit card
To build credit and improve your credit score, that's the whole purpose of a student credit card. You'll need to be responsible with your student credit card. These are some tips to make the most of your student card.
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- Make your payments on time every month. It is important to pay your bills on time with any credit product. Your credit score is heavily affected by your payment history. It's actually worth 35% of your FICO(r), Score. To avoid interest, it is best to pay your credit card bill in full each month. To keep your account in good standing, at the minimum, you should make your minimum payment by the due date. The fastest way to ruin your credit is to miss payments.
- Be responsible for your purchases. Credit cards can make it easy to spend too much and end up in credit card debt. Treat your credit card as a debit card to avoid getting into trouble. Make sure you pay for your purchases immediately. The mobile app of your card issuer is a great tool to track your purchases and check your balance anywhere you are.
- Keep track of your credit. This is a great habit to start. Many credit cards offer a monthly free credit score. Your credit reports should be checked at least once per year. Each credit bureau can provide a free credit report each year.
- Take your time. It takes years to build great credit. Do not expect to be able to get all-star credit immediately. Don't apply for multiple cards in an effort to cheat the system. You should only use one or two student cards while you are in college and you will be able to graduate with good credit.
Your credit score will help you qualify for a better rewards credit card once you are a graduate. However, this doesn't mean that you should stop using your student credit card. Your credit score will improve the longer your first credit card is active.
Because credit history, which is 15% of your FICO(r), Score, plays a significant role in your credit score. A longer credit history will allow your score to continue growing.