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Being a student, especially in college, can be a particularly difficult time when it comes to financial stability or planning. Learning how to manage your finances, while slowly, but surely, building a reputable credit score is extremely important. Later, this will allow you to start financing vehicles, homes and various other purchases, making it even more important to make the right initial steps. To that end, we’ve compiled a list of the top 5 credit cards for students, so readers can explore a few different options to see what works best for them!
- DiscoverIt Student Cashback Credit Card – DiscoverIt is a great option for students looking to make the first step into building credit. With no FICO history required, the DiscoverIt Credit Card is also much more accessible to students. Apart from that, your interests will never increase, even in the case of defaulting, although students should actively work to avoid that situation. Bonuses include free FICO scores, 5% cashback and a small amount of credit for students that successfully maintain a 3.0 GPA or higher throughout the school year. There are also very few additional fees levied by Discover, making it a great option for students. The only real downside is that it isn’t very global, meaning your Discover card won’t work in many foreign countries, so it might not be the best option if you’re considering studying abroad.
- Capital One Journey Student Card – The Capital One Journey Student Credit Card is perfect for a college student. With simple, flat rates on cashback, very little credit history required, low FICO score approval rates and scheduled bonuses for timely payments, the Capital One Journey Card gives students returns of up to 1% on every purchase through cashback. Moreover, the Card will give you small credit bonuses for making payments on time, with an additional bonus for the first five timely payments. There are no annual fees or transaction fees either, making freelancing and international transactions much smoother. Apart from that, Capital One also constantly reviews customer credit performance, meaning you’ll be able to build your credit score and increase your credit limit on a consistent basis. That being said, Capital One doesn’t offer the best cashback rates or rewards in the industry and many banks offer better returns, making it a very viable option for students looking at building their credit scores, but not so much for students who are looking to optimize their returns through their credit cards.
- State Farm Student Credit Card – Statefarm offers credit cards to students who haven’t had the opportunity to build a credit history. Moreover, they offer great support and customer care, which can be extremely educational, particularly for students making their first venture out into building credit. With a points system in place for rewards, entitling students to 1 point for every $2 spent. These points can then be redeemed for gift cards, merchandise or even donations, making them great for students. That being said, this is more of an entry-level option for students with no past experience in handling credit. With transaction fees and international fees also being levied, the State Farm Student Credit Card offers some benefits, but, ultimately, does not fare well compared to some of its competition.
- Wells Fargo CashBack SM College Card – This card aims at introducing students to the concepts of interest rates and rewards programs. For your first six months, you’ll get 0% financing on new purchases and transfers as well, with up to 3% cashback on all essentials – groceries, gas, medicine and food, with 1% cashback on all other miscellaneous purchases. This card is a great option for students, as it covers all the basic grounds. There are, however, very few features to take advantage off. Moreover, Wells Fargo has developed a reputation for being notoriously difficult to increase credit-limits with, making this an option with some very beneficial temporary returns. With international fees, transaction fees and a difficult stance on raising credit limits, the Wells Fargo CashBack SM College Card has many drawbacks when it comes to quickly building a solid credit history.
- Discover It Chrome Student Credit Card – The Discover Chrome Card, while similar to the Cashback card, offers much more benefits to students who are forced to constantly commute or live off-campus. With 2% cashback on gas and restaurants, including a whole suite of fast food chains, students who end up commuting can see big returns with the DiscoverIt Chrome Student Credit Card. Moreover, you’ll enjoy 1% cashback on all miscellaneous purchases. With Discover It, you’ll also require very little to get started – FICO scores, credit history and bank balance won’t factor into your application, making it very accessible for students. This card is essentially designed around the necessities of student life, allowing you to optimize your returns on daily expenditures. If you’re considering studying abroad or are living on campus, however, the Discover It Chrome card offers very little in terms of tangible benefits compared to some of the other options available.
So, there you have it – our list of the top 5 credit cards for students today! We did extensive research and tried to consider all aspects of student life to present information that is practically beneficial and benefits the student, while also keeping things objective to highlight the best deals and returns possible. If you’re a student looking to build a solid credit history or just get some returns on your necessary expenditures, these are some great options to consider going forward!