Pros And Cons Of Credit Cards For College Students

Like any situation, there are pros and cons to whether or not college students should have credit cards. After the end of the first year of using the Discover it® Student chrome, cardholders get all cash back matched, with no limit to how much you earn. The Journey® Student Rewards from Capital One® can be an effective tool for students who want to build up a strong credit score.

Warning: A feeling of warning and danger helps students to avoid excessive purchases. For example, if a student chooses 3% cash back on travel, they will earn a bonus on everything from ride shares to parking and public transportation. You can earn cash back with this card, which is rare with student cards, especially at 5%.

Many credit card companies will send pre-approved cards to individuals in their freshmen and sophomore years in college. Best For: Students that want a low FICO credit card they can grow with. But the most important thing to remember is that if the student does not pay attention to his or her spending with college student credit cards he can seriously damage their credit.

It can be easy to fall into the trap of borrowing more money than you can afford to pay back, which can hurt your credit for years to come. We were surprised to find that such a low percentage (38.46%) of current college students had credit cards. Moreover, the student credit cards have lower spending limit and higher interest rate (known as APR) than the standard cards.

A competitive cashback rate for responsible cardholders. Everyone is different and so a credit card may not be the best option for every student. It may sound easy, but paying back credit card best credit cards for beginners debt is extremely hard when you're studying on limited income. If you're going to study abroad and your student credit card does have a foreign transaction fee, then you really should think about applying for a for a different credit card, one without this fee.