You know that college students are loaded with debt, so you might want to know what the best credit card is for college students. Discover student credit card is one of the better options and offers a few different perks including cash back, travel rewards, and great financing options.
What is a credit card?
There are a variety of different credit cards available, so it’s important to choose the right one for you.
The following are three of the best credit cards for students:
1. Discover Student Credit Cards – This card offers 0% introductory APR on purchases and balance transfers for six months, then a variable APR starting at 13.24%. The card also has a no-annual fee option.
2. American Express Blue Cash Preferred Card – This card offers cash-back rewards on every purchase, which can be redeemed online or in-store. Rewards range from 1% to 5%, with a minimum redemption amount of $25. The card has an annual fee of $95, but it offers 0% APR on purchases and balance transfers for 12 months.
3. Chase Slate Credit Cards – This card offers 5x points on travel and dining expenses, 2x points on all other spending, and a sign-up bonus of 50,000 points if, within three months of the account creation, you spend $500. The card also has an annual fee of $0 for the first year, then $19/per year thereafter.
Why students should apply for a credit card
Credit cards are a great way to get access to financing and build your credit history. They can also help you manage your expenses, improve your financial literacy, and learn how to handle money.
There are several reasons why students should apply for a credit card. Here are five reasons:
1. To Get Access to Financing: A credit cards can be a great way to get access to financing for school costs, some personal expenses, or even large purchases like a car. You can use the card for short-term borrowing or long-term borrowing, depending on the terms of the card.
2. To Manage Expenses: A credit cards can help you manage your expenses by helping you track your spending and setting boundaries on how much you can spend each month. This can help you save money and build savings over time.
3. To Improve Financial Literacy: Learning how to manage finances is essential for any student planning on transitioning into adulthood. Credit cards offer an easy way to learn about different types of spending, debt repayment strategies, and more.
4. To Learn How to Handle Money: A credit card can teach you how to handle money responsibly by teaching you about interest rates, late payments, fees, and more. Students must have basic knowledge about finance to make smart decisions about their finances moving forward.
How to choose your personal best credit cards
Here are three cards to consider.
1. Discover Student Credit Card – This card is great for students because it offers 0% introductory APR on purchases and balance transfers for 12 months. Plus, there’s a sign-up bonus of $100 if you spend $500 in the first three months.
2. Chase Freedom Unlimited – A great option for students who are looking for a low-cost card that offers unlimited rewards points. You can earn 1 point per dollar spent and 5 points per dollar earned on dining and travel expenses. Plus, there’s a sign-up bonus of 50,000 points if you spend $500 in the first three months.
3. American Express Gold Delta SkyMiles Credit Card – This card offers 2 miles per dollar spent on all purchases and 3 miles per dollar earned on Delta flights booked through AmexTraveler.com. There’s also a sign-up bonus of 50,000 gold Delta SkyMiles if you spend $1,000 within the first three months of opening your account.
Benefits of having a credit card
Credit cards are one of the most popular financial tools out there. They offer many benefits, such as the ability to build a good credit score and get approved for loans in the future. Here are three top reasons to consider getting a credit card:
1. Build Your Credit Score. A good credit score is important when looking for a loan or other financial opportunities in the future. Opening a new credit card account can help you improve your score by increasing your average daily balance and limiting your usage of high-interest debt products.
2. Get Approved for Loans Later on. Having a good credit score can help you get approved for loans in the future, especially if you’re looking to purchase a home or car. Many lenders look at your total debt – including your current and past debts – when considering whether or not to approve you for a loan.
3. Use It for Cash Back Rewards and Other Benefits. Credit cards offer many different rewards programs, such as cash-back rewards and travel credits that can be used towards future travel expenses or merchandise purchases. These benefits can be valuable both now and in the future, when you may need extra money to cover costs like tuition fees or living costs while studying abroad.”
Observations to make when applying for a credit card
For starters, make sure you have a good history of paying off your debts. This means having a low balance on your current credit cards and no outstanding collections or loans from other lenders. Secondly, make sure the credit card you’re applying for is the best option for you.
Some factors to consider include the interest rate, rewards programs offered, and fees associated with the card. Finally, be aware of how much debt you can afford to carry, and keep in mind that credit cards can help you build up your credit score which can benefit you in the future when you want to apply for a loan or purchase a home.