College and Credit Cards

A college finance blog.

What credit cards are best for college students?

Building credit is more important than young adults realize! It helps banks and businesses know if the customer they are working with is reliable at making payments. There are different forms of credit, but the most common form is credit cards.

Imagine you want to buy a 20lb ice cream sundae that is $22, but you only have $4.20 to your name. You get paid $100 the next day, but you want that sundae now. You would use your credit card to purchase the sundae. Once you get paid, you would then pay off the $22 charged to your credit card.

In Layman’s terms, the bank loans you a certain amount of money that you can spend each month; however, it needs to be paid back by the first day of the next month, or else they will charge additional “late fees” to your account. Once you continuously pay the banks back on time, you will start to build a credit score that will reflect your credibility to pay off the charges. Credit scores are used to negotiate mortgages, cars, loans, and more. The higher the credit score, the better.

This can seem daunting, I know! But it is never too early to start building your credit score! Students are at an advantage when opening up their first credit card because of student credit card programs. Student credit cards are entry-level credit cards only available to students that at designed to help you navigate your first card. Here are great starter student cards from America’s top national banks and cards!

Bank of America: Cash Rewards for Students (Voted best Student Credit Card by U.S. News and World Report 2021)

• 3% cashback on the eligible category of your choice.
• 2% cashback on groceries.
• Earn 3% and 2% cashback on the first $2500 in combined categories each quarter.

Disadvantages: Must have a good excellent credit score to apply.

Chase: Freedom Student Credit Card

• $50 welcome boun after your first purchase made within the first month.
• Credit limit increase after making 5 on-time payments for eligible cardholders.
• $20 reward on your anniversary fr 5-years for good standing accounts.

Disadvantages: Must have a good excellent credit score to apply.

WellsFargo: Cash Back College Card

• 0% APR for 6 months.
• 3% cash back for up to $2,500 spent on gas, groceries, and drug store purchases for the first 6-months.
• 1% cash rewards for each $1spent online.

Disadvantages: Requires an existing WellsFargo account.

Discover it Secure Credit Card

• No previous credit score is needed.
• 2% cashback on gas stations and restaurants. Up to $1,000 a quarter.
• Into-offer, Unlimited cashback match for the first year. At the end of your first year, Discover will match all the cashback made your first year.

Disadvantages: 22.99% APR. Not excepted worldwide.

Remember to swipe your card responsibly! Never buy more than you can pay off! If you need to, freeze your card in a cup and stick it in the back of your freezer! The movie “Confessions of a Shopaholic” can become a reality fast if you are not responsible with your credit card. SHOP SMART!

Editor’s Note: This article was written for a class project. Information was found from various websites, including Forbes and U.S. News.