Best Student Credit Cards of 2020
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Student credit cards are great tools to help young adults build their credit scores. These cards can provide a good source of emergency funds as well, as long as students understand the debt and the risks that can come along with them. For the responsible spenders looking for the best student credit cards, here are some suggestions:Citi Rewards+℠ Student Card is a card that automatically rounds up to the nearest 10 points on every purchase with no cap. Students receive two ThankYou® Points for every dollar spent at supermarkets and gas stations for the first $6,000 per year in purchases, and then one point thereafter. All other transactions earn one point per dollar. There is also an early spend bonus: 2,500 bonus points after you spend $500 in purchases with your card within three months of opening the account opening—that is redeemable for a $25 gift card at thankyou.com. Cardholders receive 10% of their redeemed points back on the first 100,000 ThankYou® Points redeemed each year. In addition, there is a 0% APR for the first seven months on all purchases. This card has no annual fee. The ongoing APR is 15.99% - 25.99% (Variable) depending on your credit worthiness. This card is designed for students with good credit.
Journey® Student Rewards from Capital One® offers some great features. Students will earn 1% cash back on all purchases, and that can increase to 1.25% for that month if you make your payment on time. There is no limit to the amount of cash back that can be earned. You will also receive a higher credit line once you make your first five payments on time. There are no annual fees or foreign transaction fees with this card. Cardholders can even pick the monthly due date that is best for their needs. The Journey Rewards Card has an APR of 26.74% (Variable). This card is designed for students with fair credit.
Credit Card Tips for College Students
Knowing the best student credit cards are on the market is not enough. You need to know how to use those cards effectively. It is easy to slip into debt when you’re not used to managing your own finances, so you have to tread lightly to avoid a serious problem.
First of all, don’t think of your credit card as “extra money.” You have to pay it back just like you would a loan from a bank. It’s not an excuse to go on a buying spree. You should always have a logical plan to pay off your card’s balance. The sooner you can do so, the better off you will be. That will help you avoid an array of fees along the way.
Learn about your rewards program and try to use it to your advantage. For instance, you may pay your bills on your credit card and then just pay off the card with the money you already have. You still get the rewards and your bills get paid. The only difference is that you went through one extra step to make that happen.
Always be on time with your payments, and be sure to make more than the minimum amount. Even a small $500 balance could take years to pay off if you just pay the minimum. If you think you are going to be late on a payment, try to contact the card company before you get a mark on your credit. One late payment can do serious damage to your credit score.
Overall, you need to feel confident in using your card without being irresponsible. Pay off your balance and monitor your spending so you don’t go into debt at an early age. Once you develop good card management skills, you should be able to get approved for an even better credit card in the future.