Many people have a hard time believing that kids should be given credit cards. However, there are several benefits for college students to begin using credit card debt early in life. It will teach them about the value of money and how much they can actually spend each month if they use it properly. Experts say giving children their first card at an age where interest rates aren’t high is a great way to start teaching them responsibility with finances

If you’re a parent with a child who is going to college, it may be time to get them a credit card. The “credit card for child under 18” will allow your child to build their credit history and have access to more financial options as they grow up.

Students at colleges try to get their first credit card for a variety of reasons. They could need a safe and practical form of payment if they are moving away from home for the first time. Students also need to start establishing a solid credit history and learn how to utilize credit wisely. Students may also benefit greatly from credit card perks and privileges, but they should exercise extreme caution when using their cards to fund purchases and accumulate debt.

We’ve compiled the greatest student credit cards across areas, from earning cash back rewards to going out, to help you navigate your quest for a reliable credit card that you can use responsibly.

Parents should cosign for student loans, too.

Source of the image: DepositPhotos.com.

How We Selected the Most Effective Student Credit Cards

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We initially segmented the market into the following six categories in order to determine the best student credit cards:

  1. The best student credit card for cash rewards
  2. travel credit cards for students
  3. optimum student card for nightlife
  4. A good student card to promote appropriate usage
  5. best student card to promote academic excellence
  6. The most advantageous student card

To identify the best cards in each of these areas, we examined more than a dozen significant credit card issuers and credit unions. We excluded goods supplied by credit unions that not everyone can join and only included cards that are available to all applicants.

And we focused on the most important elements for each category. The best student cards, for instance, should reward users with cash back on dining and grocery store purchases, while the best student cards for rewards should provide several advantages to users. Despite the fact that credit card conditions might sometimes change, the following rankings are based on data that was current as of October 2021.

Source of the image: DepositPhotos.com.

1. The best student credit card for cash rewards

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Even while students shouldn’t use credit cards just for the cash back benefits, it’s always nice to receive paid for your everyday purchases.

LightFieldStudios/Istockphoto are the source of the image.

Student Capital One Quicksilver Rewards

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Although you will still need to understand how to read your credit card statement each month, many credit card users choose to receive a flat rate of cash back on all transactions rather than tracking additional rewards for certain categories of purchases. We looked at the percentage of cash back provided as well as for a card that has minimal fees in order to locate the best flat rate cash back card, which lead us to the Capital One Quicksilver Rewards for Students card.

Just like the regular version of this card, the Student Capital One Quicksilver Rewards offers unlimited 1.5% cash back on all purchases. It comes with benefits like extended warranty coverage, a complimentary concierge and travel assistance services. And with No yearly charge and Absence of foreign transaction fees, it’s a low-cost way for students to use a cash back credit card.

Capital One provided the image.

Pros & Cons

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Pros:

  • Earn 1.5 percent of all purchases in cash back.
  • No yearly charge
  • Absence of foreign transaction fees
  • beneficial advantages

Cons:

  • No incentive for new customers
  • APR on purchases that is above average

Source of the image: DepositPhotos.com.

2. Bank of America’s Student Cash Rewards Program

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On the other hand, some students are especially interested in cash back benefits on their regular purchases. With the Bank of America Customized Cash Rewards for Students card, you may get 3 percent cash back on a monthly category of your choice. Eligible areas include petrol, online shopping, food, travel, pharmacy shops, and home improvement/furniture.

Additionally, you get On all other purchases, you’ll get 1% cash back. in addition to 2 percent cash back at grocery shops and wholesale clubs on the first $2,500 in combined choice category, grocery store, and wholesale club purchases made each quarter. After making at least $1,000 in brand-new purchases with their card within 90 days of establishing an account, new applicants may additionally increase their cash rewards by $200.

You also receive Financing for new purchases and debt transfers for 15 months at 0% APR made within 60 days of account opening (if you’re unsure on any of that terminology, check out our guide on terms related to credit cards). This card also includes a free monthly FICO score, and its mobile app ties into your other Bank of America checking and savings accounts. There’s No yearly charge for this card.

Bank of America provided the image.

Pros & Cons

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Pros:

  • Every month, you’ll get 3% cash back on a spending category that you choose.
  • 2% cashback in supermarkets and wholesale clubs
  • Financing for new purchases and debt transfers for 15 months at 0% APR
  • No yearly charge

Cons:

  • You must manually alter the category of purchases you wish to use to receive 3 percent cash back.
  • Bonus cashback is only available on the first $2,500 spend.

Youngoldman / istockphoto, source of the image.

3. travel credit cards for students

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There are several credit cards with travel incentives, but few are specifically made for students. The best credit cards include significant initial account bonuses, useful incentives for spending, and no foreign transaction fees.

Picture Source: MStudioImages.

Bank of America Student Travel Rewards

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This credit card provides students with a number of benefits while trying to accrue travel points. First, after making $1,000 in new purchases during the first 90 days of starting their account, new account users may receive 25,000 bonus points. The value of this alone in statement credits for travel and meals is $250.

Students also get unlimited 1.5 points every dollar spent on all purchases. As statement credits for travel and eating expenses, these points are also worth one cent apiece. Additionally, new accounts get 15 months of 0% APR financing on new purchases, although students should still be strongly advised to stay out of debt.

There’s No yearly charge for this card, and you’ll face Absence of foreign transaction fees when you travel outside of the U.S.

Bank of America provided the image.

Pros & Cons

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Pros:

  • Earn points for purchases like travel or eating.
  • Redeeming travel rewards is simple.
  • $250 in new account bonuses
  • No yearly charge or foreign transaction fees

Cons:

  • An advertisement for finance might lead to debt
  • To get the new account incentive, you must spend $1,000 in 90 days.

Kitzcorner and Istockphoto, thanks.

4. optimum student card for nightlife

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Let’s face it: many students spend a significant portion of their finances on entertainment, food, and dining. We thus sought for cards that rewarded students the most for such types of expenditures while searching for the best student card for going out.

Geber86 provided the photo.

Student Capital One SavorOne Rewards

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This card offers 3% cash back on dining, entertainment, groceries and purchases from popular streaming services. There are no limits on the bonuses you can earn, and you’ll get On all other purchases, you’ll get 1% cash back.. The card even offers 8% cash back on tickets at Vivid Seats when you use your Capital One SavorOne Rewards card. There’s No yearly charge for this card, and Absence of foreign transaction fees.

Capital One provided the image.

Pros & Cons

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Pros:

  • 3 percent back on eating, entertainment, grocery, and streaming service purchases
  • On all other purchases, you’ll get 1% cash back.
  • There are no restrictions on how much cash back you may get.
  • No yearly charge and Absence of foreign transaction fees

Cons:

  • Standard interest rate above average
  • Large eating and entertainment prizes could promote debt and extravagance.

Source of the image: DepositPhotos.com.

5. A good student card to promote appropriate usage

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Many students and their parents prioritize promoting appropriate usage when choosing a student credit card. That entails keeping up with your monthly payments and having little to no debt. The best credit cards for promoting responsible usage will reward you for making on-time payments.

SolisImages/Istockphoto are the source of the image.

Capital One Journey Student Credit Card

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The Capital One Journey Student Credit Card offers a nominal Cashback of 1% is offered on all purchases. However, when you pay your bill on-time, Capital One will increase your cash back percentage to 1.25%. It’s not that much money, but it could be enough to get students to make timely payments.

This card also includes $60 in annual credits ($5 per month) towards select entertainment streaming services, but only when your monthly payment is made on time. There’s No yearly charge for this card, and Absence of foreign transaction fees.

Capital One provided the image.

Pros & Cons

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Pros:

  • Enhanced incentives for timely payments
  • Streaming entertainment purchases are eligible for a $5 monthly credit with on-time payments.
  • Within six months, an automatic credit line review will be conducted.
  • No yearly charge and Absence of foreign transaction fees

Cons:

  • Even with on-time payments, the cash back rates are lower than normal.
  • Standard interest rate above average

Source of the image: DepositPhotos.com.

6. best student card to promote academic excellence

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Although managing your credit cards and personal money is crucial, college students place a premium on doing well in their classes. The best credit card for rewarding kids with outstanding marks will genuinely honor them according to their GPA.

Source of the image: DepositPhotos.com.

Learn about Student Chrome

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Discover offers a Good Grade Reward on its student credit cards, including the Learn about Student Chrome card. Students with a Discover it Chrome card who have a GPA of 3.0 or higher (or equivalent) during a school year (September through August) may apply at Discover.com for a $20 statement credit. You can earn one Good Grade Reward per school year, per account, up to a maximum of five consecutive years from the date your account is opened.

This card also offers 2% cash back at gas stations and restaurants, on up to $1,000 in combined purchases each quarter. You also earn On all other purchases, you’ll get 1% cash back., and the Discover card will automatically double the amount of cash back you’ve earned during your account’s first year.

There’s No yearly charge for this card, and Absence of foreign transaction fees.

Discover card provided the image.

Pros & Cons

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Pros:

  • Academic success is encouraged through good grade awards.
  • Offers for petrol and restaurant purchases that can save you money
  • Discover doubles the cash back you earn in the first year of your account.
  • No yearly charge, and Absence of foreign transaction fees

Cons:

  • Receiving benefits could foster debt and excessive expenditure.
  • Compared to Visa and Mastercard, the Discover card is less generally accepted abroad.

Source of the image: DepositPhotos.com.

The most advantageous student card

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Students using credit cards also do so to take advantage of the perks. The things that young people appreciate most will be on the best student cards for advantages.

B4LLS/iStock is credit for the image.

Defend EDU

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The Defend EDU card includes quite a few benefits that can save students money. First, cardholders will enjoy a year of Amazon Prime Student. Cardholders will also receive a cell phone protection policy, because for many students, it’s only a matter of time before their pricey smartphone becomes damaged or stolen. This card also offers Cashback of 1% is offered on all purchases, with no limits. This card is also great for international students, as there’s no Social Security number necessary to apply. There’s No yearly charge for this card, and Absence of foreign transaction fees.

Mastercard provided the image.

Pros & Cons

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Pros:

  • a free year of Amazon Prime for students
  • cellular phone insurance
  • Cashback of 1% is offered on all purchases
  • No yearly charge or foreign transaction fees

Cons:

  • not a member of a large bank
  • No welcome bonus or financing promotion is available.

Photo courtesy of SIphotography/iStock.

Benefits and Drawbacks of Student Credit Cards

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Make sure you are aware of the benefits and drawbacks of student credit cards before applying. This will guarantee that, should you get one, you understand how to use a credit card safely.

Image courtesy of SoFi/Lantern Credit.

Other Credit Cards for Students

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There are several excellent alternatives to student credit cards for those for whom they are not the best option.

  • Get a prepaid debit card: You may start by thinking about getting a prepaid debit card. Debit cards have the benefit of making it hard to accumulate debt since you can only spend the funds that have already been deposited. Prepaid debit cards cannot be used to obtain a line of credit, hence they cannot be used to establish credit.
  • Adding yourself as an authorized user: You may also add yourself as an authorized user on someone else’s card, such as a parent or family member. You may make charges on another person’s account if you are an authorized user, but the main cardholder is always liable for payment. Because of this, it’s crucial that the main cardholder and the authorized users agree on how to use the card. To enhance your own credit score, you can consider joining forces with someone who has a strong or exceptional credit score.
  • Consider cards not specific to students: Students with an established credit history can also consider applying for one of the many cards not specifically marketed to students. These cards can come with more generous rewards, more beneficial advantages and lower interest rates. However, these cards can also have annual fees, while most student cards do not.
  • Consider a secured card: On the other hand, students who have previously had credit issues could think about a secured card. Secured credit cards function similarly to regular, unsecured cards, but in order to create an account, a refundable security deposit must be paid. With careful usage, many secured cardholders may upgrade their card to a conventional, unsecured card within a year. These cards are provided to persons with low or terrible credit.

Photo courtesy of jacoblund.

Are you considering applying for a credit card?

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Since so many students don’t properly manage their accounts and graduate with debt, student credit cards may be a contentious subject. However, students may develop lifelong excellent credit card habits if they pick the correct credit cards for their requirements, learn to avoid debt, and pay their payments on time. For this reason, it’s crucial to take your time while choosing a credit card.

Study More:

This article originally appeared on LanternCredit.com and was syndicated by MediaFeed.org.

 

The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website on credit (https://www.consumer.ftc.gov/topics/credit-and-loans)

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Your credit ratings and potential interest rates are influenced by a variety of variables. According to federal or state legislation, including the Credit Repair Organizations Act, SoFi is not a credit repair organization. SoFi does not provide “credit repair” services, recommendations, or help with “rebuilding” or “enhancing” your credit history, score, or report. Visit the FTC’s credit page at https://www.consumer.ftc.gov/topics/credit-and-loans for more information.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Individual Loan:

This Personal Loan program is run by SoFi Lending Corp. (“SoFi”) in conjunction with Even Financial Corp. (“Even”). In the event that you submit a loan enquiry, SoFi will send your data to Even, who will then send it to its network of lenders and partners for examination in order to ascertain if you qualify for pre-qualified or pre-approved offers. Your credit information will also be obtained from a credit reporting agency by the lenders or partners obtaining your information. Pre-qualified and pre-approved offers from one or more lenders/partners will be given to you here on the Lantern website if you fulfill one or more lender’s and/or partner’s eligibility requirements. You may learn more about Even, the application procedure, and its lenders and partners by filling out the loan enquiry form found on our pages for personal loans and student debt refinancing. Click to read more about the privacy policy, terms of service, and licenses and disclosures for Even.

The maximum APR for personal loan offers made to consumers on Lantern is 35.99 percent. A $10,000 personal loan with a 36-month term and a 10-percent interest rate, for instance, would cost $11,616.12 in total payments over the course of that time.

Refinancing Student Loans

This student loan refinancing scheme is run by SoFi Lending Corp. (“SoFi”) and Even Financial Corp. (“Even”). In the event that you submit a loan enquiry, SoFi will send your data to Even, who will then send it to its network of lenders and partners for examination in order to ascertain if you qualify for pre-qualified or pre-approved offers. Your information will be sent to the lender, who will also get your credit report information from a credit reporting agency. Pre-qualified and pre-approved offers from one or more lenders/partners will be given to you here on the Lantern website if you fulfill one or more lender’s and/or partner’s eligibility requirements. You may learn more about Even, the application procedure, and its lenders and partners by filling out the loan enquiry form found on our pages for personal loans and student debt refinancing. Click to read more about the privacy policy, terms of service, and licenses and disclosures for Even.

The student loan refinancing loans provided by Lantern are private loans, not part of the government loan program, hence they lack the debt forgiveness and repayment choices, such as Income Based Repayment, Income Contingent Repayment, and Pay as You Earn (PAYE).

Notification: As a result of recent legislation developments, interest on federally held loans is no longer charged and all federal student loan payments are halted until May 1st, 22. Before refinancing federally held loans, please carefully evaluate these changes since you will no longer be eligible for them or any upcoming incentives pertaining to federally held loans.

Vehicle Loan Refinancing

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Security Information Disclosure:

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Term Life Insurance

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AlertMe

If you have a kid going to college, it may be time to get them a credit card. They’ll need one for their first year in school and after that they can transfer any balances they have. The best credit card for kids is the Citibank AAdvantage Aviator Credit Card.

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  • how to get a credit card for my kid
  • chase credit card for kids
  • free credit card for kids
  • should i get a credit card in college
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