📜How to Choose the Best Student Credit Card in USA in July 2024?
Choosing the right student credit card in the USA is an important decision that can affect your financial journey. With so many options available, it’s important to consider many factors before making your choice. This article will walk you through the process of choosing the best student credit card and provide a list of the top 7 student credit cards in the USA. We also cover the features, pros and cons of each credit card to help you make an informed decision.
▶️Factors to Consider while Choosing a Student Credit Card
There are many factors to consider when evaluating student credit cards.
1. Credit limit:
Find a credit card with a credit limit that meets your needs. As a student, you may not need high credit at first, but make sure it’s enough to cover your debts.
2. Interest Rates:
Pay attention to credit card interest rates. A low interest rate can save you money in the long run, especially if you plan to keep your balance.
3. Annual Fee:
Consider whether your credit card has an annual fee. Some credit cards have no annual fee, which can be useful for students on a budget.
4. Rewards:
Check if your credit card offers rewards programs such as cashback, points, or miles. Rewards can add value to your purchase.
5. Credit-building opportunities:
Find credit cards that report payments to credit bureaus. This will help you establish a good credit history, which can help you in your future endeavors.
Now let’s take a look at 7 of the most popular student credit cards in the US, along with their features, pros, and cons.
▶️List of 7 Best Student Credit Cards of USA in July 2024
1. Discover it® Student Cash Back
2. Capital One® Journey® Student Credit Card
3. Bank of America® Cash Rewards Credit Card for Students
4. Citi Rewards+℠ Student Card
5. Wells Fargo Cash Back College℠ Card
6. Chase Freedom® Student Credit Card
7. U.S. Bank College Visa® Credit Card
Now, let us explore their features, pros, and cons:
1. Discover it® Student Cash Back
FEATURES:
- Cash back rewards on purchases: Earn cash back on your everyday purchases, with rotating bonus categories that offer higher cashback rates.
- No annual fee: Enjoy the benefits of the card without any annual fee, helping you save money.
- Good Grade Reward: Get a $20 statement credit each school year your GPA is 3.0 or higher, for up to five years.
- Flexible payment options: The card offers flexible payment due dates, allowing you to choose a due date that works best for you.
- Free FICO® credit score: Access your FICO® credit score for free, helping you monitor your credit and track your progress.
PROS:
- Cashback match at the end of the first year: Discover matches all the cash back you’ve earned at the end of your first year, doubling your rewards.
- No late fee on the first late payment: Discover provides a one-time waiver on late payment fees, giving you some flexibility if you miss a payment.
- Cash rewards for good grades: The Good Grade Reward program incentivizes academic success by offering statement credits for maintaining a good GPA.
- Broad acceptance: Discover cards are widely accepted in the United States, making it convenient for everyday use.
- Customer-friendly policies: Discover is known for its excellent customer service and helpful resources for cardholders.
CONS:
- Limited acceptance outside the USA: While Discover is widely accepted within the United States, it may have limited acceptance internationally.
- Cashback categories change quarterly: The rotating cashback categories might require some planning and adjustment of spending habits.
- Lower acceptance compared to major networks: Discover is not as widely accepted as Visa or Mastercard, especially in certain international locations.
2. Capital One® Journey® Student Credit Card
FEATURES:
1. Cash back rewards on purchases: Earn cash back on all your purchases, helping you save money while you spend.
2. No foreign transaction fees: Use your card for purchases outside the United States without incurring any foreign transaction fees.
3. Credit limit increase after on-time payments: With responsible credit usage, you have the opportunity for a higher credit limit over time.
4. Free credit score monitoring: Access and monitor your credit score for free, helping you stay on top of your credit health.
5. Fraud coverage: Enjoy protection against unauthorized charges with Capital One’s fraud coverage.
PROS:
- Cashback rewards for responsible credit usage: Earn cash back on your purchases, encouraging responsible spending and budgeting habits.
- No annual fee: The card comes with no annual fee, making it a cost-effective choice for student cardholders.
- Access to a higher credit limit over time: By making on-time payments and demonstrating responsible credit behavior, you can qualify for a credit limit increase.
CONS:
- Higher interest rates for late payments: Late payments can result in higher interest rates, so it’s important to make payments on time to avoid additional charges.
- Limited rewards structure: While the card offers cash-back rewards, it may not have as varied or competitive rewards categories compared to some other cards.
3. Bank of America® Cash Rewards Credit Card for Students
FEATURES:
- Cash back rewards on purchases: Earn cash back on everyday purchases, with bonus rewards on popular spending categories like gas, dining, and groceries.
- No annual fee: Enjoy the benefits of the card without any annual fee, helping you save money.
- Flexible redemption options: Redeem your cash back rewards as a statement credit, deposit it into a Bank of America® checking or savings account, or get it as a paper check.
- Free FICO® credit score: Access your FICO® credit score for free, helping you monitor your credit and track your progress.
- Customizable card design: Personalize your card with your favorite photo or choose from a range of designs to reflect your style.
PROS:
- Cashback rewards on popular spending categories: Earn higher cash back rewards on categories like gas, dining, and groceries, maximizing your rewards potential.
- Bonus cash back for Bank of America customers: If you have a Bank of America® checking or savings account, you can earn additional bonus cash back rewards.
- No foreign transaction fees: Use your card for purchases outside the United States without incurring any foreign transaction fees.
CONS:
- Requires a Bank of America account for maximum benefits: To unlock the full potential of bonus cash back rewards, you need to have a Bank of America® checking or savings account.
- Lower rewards rates compared to other cards: The cash back rewards rates offered by the Bank of America® Cash Rewards Credit Card for Students may be lower compared to some other cards on the market.
4. Citi Rewards+℠ Student Card
FEATURES:
- Rewards on purchases: Earn rewards on every purchase you make with the card.
- No annual fee: Enjoy the benefits of the card without any annual fee.
- Round Up feature: Earn points on every purchase with the unique Round Up feature that automatically rounds up to the nearest 10 points on every transaction.
- Free FICO® credit score: Access your FICO® credit score for free, helping you monitor your credit and track your progress.
- Redeem rewards for travel or gift cards: Use your earned rewards to redeem for travel or gift cards from a wide selection of options.
PROS:
- Points rounded up on every purchase: The Round Up feature allows you to accumulate points faster, giving you extra rewards on your everyday spending.
- Introductory APR on balance transfers: Enjoy a 0% introductory APR on balance transfers, helping you save on interest charges when you transfer balances from other cards.
- No late fee on the first late payment: Citi provides a one-time waiver on late payment fees, offering flexibility if you miss a payment.
CONS:
- Lower rewards rates compared to other cards: The rewards rates offered by the Citi Rewards+℠ Student Card may be lower compared to some other cards in the market.
- Lower acceptance compared to major networks: Citi cards may not be as widely accepted as Visa or Mastercard, especially in certain international locations.
5. Wells Fargo Cash Back College℠ Card
FEATURES:
- Cash back rewards on purchases: Earn cash back on your everyday purchases, helping you save money while you spend.
- No annual fee: Enjoy the benefits of the card without any annual fee, making it a cost-effective choice.
- Cell phone protection: Get cell phone protection coverage when you pay your monthly cell phone bill with your card.
- Free access to FICO® credit score: Stay informed about your credit health with free access to your FICO® credit score.
- Introductory APR on purchases: Benefit from an introductory 0% APR on purchases for a certain period of time.
PROS:
- Cashback rewards on everyday spending: Earn cash back on your everyday purchases, allowing you to accumulate rewards on your regular expenses.
- Bonus cash back for good grades: Get additional cash back rewards for maintaining good grades, incentivizing academic success.
- Cell phone protection: Enjoy the added benefit of cell phone protection coverage when you use your card to pay your monthly cell phone bill.
CONS:
- Limited acceptance outside the USA: While the Wells Fargo Cash Back College℠ Card is widely accepted within the United States, it may have limited acceptance internationally.
- Potential for higher interest rates: If you carry a balance, the interest rates on the card can be relatively high, so it’s important to pay off the balance each month.
6. Chase Freedom® Student Credit Card
FEATURES:
- Cash back rewards on purchases: Earn cash back on your purchases, allowing you to save money while you spend.
- No annual fee: Enjoy the benefits of the card without any annual fee, making it a cost-effective choice.
- Good standing reward: Receive a statement credit each year for up to five years when your account is in good standing.
- Free credit monitoring: Access free credit monitoring tools and resources to help you stay on top of your credit health.
- Introductory APR on purchases: Benefit from an introductory 0% APR on purchases for a certain period of time.
PROS:
- Cashback rewards on popular spending categories: Earn cash back on popular spending categories, maximizing your rewards potential.
- No minimum credit history required: The Chase Freedom® Student Credit Card is designed for students, so it doesn’t require a lengthy credit history for approval.
- Good standing bonus: Receive a statement credit each year for maintaining good standing, encouraging responsible credit behavior.
CONS:
- Higher interest rates for late payments: Late payments can result in higher interest rates, so it’s important to make payments on time to avoid additional charges.
- Limited credit limit: As a student credit card, the initial credit limit may be relatively low compared to other cards.
7. U.S. Bank College Visa® Credit Card
FEATURES:
- Cash back rewards on eligible purchases: Earn cash back on eligible purchases, allowing you to save money while you spend.
- No annual fee: Enjoy the benefits of the card without any annual fee, making it a cost-effective choice.
- Fraud protection: Benefit from built-in fraud protection measures to safeguard your card against unauthorized transactions.
- Free access to TransUnion CreditView™: Access your credit score and credit monitoring tools to stay informed about your credit health.
- Flexible payment options: Enjoy flexible payment options that suit your needs, giving you the flexibility to manage your payments effectively.
PROS:
- Cashback rewards on eligible purchases: Earn cash back on eligible purchases, helping you maximize your savings.
- No annual fee: The U.S. Bank College Visa® Credit Card does not charge an annual fee, making it a budget-friendly option.
- Access to credit education: U.S. Bank provides resources and tools to help you learn about credit management and build responsible credit habits.
CONS:
- Limited rewards program: The rewards program offered by the U.S. Bank College Visa® Credit Card may have limitations compared to other cards.
- Potential for higher interest rates: If you carry a balance, the interest rates on the card can be relatively high, so it’s important to pay off the balance each month.
▶️Comparision of all the 7 best student credit cards in USA in July 2024
| Sl. No. | Credit Card Name | Features | Pros | Cons |
|---|---|---|---|---|
| 1. | Discover it® Student Cash Back | – Cash back rewards on purchases – No annual fee – Good Grade Reward – Flexible payment options – Free FICO® credit score | – Cashback match at the end of the first year – No late fee on the first late payment – Cash rewards for good grades | – Limited acceptance outside the USA |
| 2. | Capital One® Journey® Student Credit Card | – Cash back rewards on purchases – No foreign transaction fees – Credit limit increase after on-time payments – Free credit score monitoring – Fraud coverage | – Cashback rewards for responsible credit usage – No annual fee – Access to a higher credit limit over time | – Higher interest rates for late payments |
| 3. | Bank of America® Cash Rewards Credit Card for Students | – Cash back rewards on purchases – No annual fee – Flexible redemption options – Free FICO® credit score – Customizable card design | – Cashback rewards on popular spending categories – Bonus cashback for Bank of America customers | – Requires a Bank of America account for maximum benefits |
| 4. | Citi Rewards+℠ Student Card | – Rewards on purchases – No annual fee – Round Up feature – Free FICO® credit score – Redeem rewards for travel or gift cards | – Points rounded up on every purchase – Introductory APR on balance transfers – No late fee on the first late payment | – Lower rewards rates compared to other cards |
| 5. | Wells Fargo Cash Back College℠ Card | – Cash back rewards on purchases – No annual fee – Cell phone protection – Free access to FICO® credit score – Introductory APR on purchases | – Cashback rewards on everyday spending – Bonus cashback for good grades – Cell phone protection | – Limited acceptance outside the USA |
| 6. | Chase Freedom® Student Credit Card | – Cash back rewards on purchases – No annual fee – Good standing reward – Free credit monitoring – Introductory APR on purchases | – Cashback rewards on popular spending categories – No minimum credit history required – Good standing bonus | – Higher interest rates for late payments |
| 7. | U.S. Bank College Visa® Credit Card | – Low interest rates – No annual fee – Fraud protection – Access to online financial tools – Flexible payment options | – Lower interest rates for students – No penalty APR for late payments – Fraud protection | – Limited rewards or cashback opportunities |
▶️Video: Best Credit Cards For College Students by Daniel Braun
Source: Daniel Braun
▶️FAQ
Yes, some credit cards are available to international students, but specific requirements may apply. Check with each credit card provider for their eligibility criteria.
Yes, there are student credit cards available specifically designed for students with limited or no credit history. These cards often have lower credit limits and may require additional documentation or a co-signer.
The minimum age requirement varies by credit card issuer, but most student credit cards require applicants to be at least 18 years old. Some issuers may have higher age requirements.
Many student credit cards do not have annual fees. However, it’s important to review the terms and conditions of each card as some may have annual fees after an introductory period.
Yes, most student credit cards can be used for international purchases. However, it’s advisable to check with the credit card issuer about any foreign transaction fees that may apply.
Student credit cards report your payment history to credit bureaus, which helps establish and build your credit history. By making timely payments and managing your credit responsibly, you can build a positive credit score.
Yes, many student credit cards offer rewards programs such as cashback, points, or miles. These rewards can be earned on eligible purchases and provide additional benefits.
In most cases, you can upgrade your student credit card to a regular credit card after demonstrating responsible credit usage and building a positive credit history. Contact your credit card issuer for more information.
Balance transfers are possible in some cases, but it depends on the credit card issuer’s policies. Additionally, there may be fees associated with balance transfers. It’s recommended to contact your credit card issuer to inquire about balance transfer options.
Closing your student credit card after graduating is not always necessary. If the card has no annual fee and helps build your credit history, it may be beneficial to keep it open. However, if there are annual fees or you no longer need the card, you can consider closing it while considering the potential impact on your credit score.
▶️CONCLUSION
Choosing the best student credit card in the USA requires careful consideration of your needs, financial circumstances, and the features offered by various credit cards. Assess factors like credit limit, interest rates, annual fees, rewards programs, and credit-building opportunities. Based on our analysis, the XYZ Student Card stands out with its low credit limit, no annual fee, credit-building opportunities, and cashback rewards. However, each credit card listed has its own advantages and disadvantages, so choose the one that aligns best with your priorities and financial goals. It is to keep in mind that the terms and conditions of above cards may change anytime. So, it is advisable to consult the card provider before making any decision.
Remember, using a student credit card responsibly by making timely payments and managing your credit wisely will help you establish a positive credit history, laying a strong foundation for your future financial endeavors. The blog written here is only for informational purposes.
