Over the last three years, there has been a strong initiative to reform the banking industry in terms of attracting and maintaining credit card customers. Student credit cards have seen many of the changes. Gone are the days of marketing on college campuses for free t-shirts, and if you’re under 21 without a reliable source of income, you’ll need a parent’s permission to obtain a credit card. The debate will continue about whether college student credit cards are appropriate tools for students, but no matter which side of the fence you sit, it’s beneficial to inform students about the best college student credit cards.
If you’re a college student looking to finance your needs on campus or on break, then a college student credit card may be the right choice for you. I recommend saving to cover your expenses as you want to graduate with as little debt as possible to start your career on the right foot. Working to earn money often takes a back seat to education during college, and credit card use is common to smooth out the income you might earn over the summer.
Some of these student credit cards offer great rewards, others offer low interest rates, and a few provide the opportunity to reduce your interest rate with responsible use.
Editor’s choice
Discover® Student Clear Card. The Discover Student Clear Card is a plain college student credit card. It’s reliable but not flashy. An introductory APR of 0% is available on purchases for nine months. Cardholders will earn 0.25% cash back on their first $3,000 in annual purchases and be given the opportunity to earn 5% Cashback Bonus®* on rotating categories throughout the year, subject to enrollment and maximum spending limits. After that, cardholders will earn up to 1% cash back on all purchases, still with the 5% Cashback Bonus®* opportunity. The Discover Student Clear Card does not have an annual fee.
Citi® Dividend Platinum Select® Card for College Students. The best card on this list in terms of straight rewards, Citi® Dividend Platinum Select® Card for College Students cardholders earn 5% cash back at supermarkets, drugstores, gas stations, and utilities for the first six months and 1% cash back thereafter. At least 2% cash back in popular rotating categories like restaurants, apparel and more, subject to enrollment. All other purchases will earn 1% cash back. This card does not carry an annual fee. The offer includes an introductory 0% APR on purchases for 7 months for the Citi® Dividend Platinum Select® Card for College Students, after the introductory period the regular purchase APR is 13.99% to 21.99% variable – good for a student credit card.
Discover® Student Card – $20 Cashback Bonus. Like the Discover Student Clear Card above, this version of the card offers the 5% cash back opportunity subject to enrollment and maximum spending limits. After passing the $3,000 spending threshold cardholders may earn 1% cash back. While the first card on this list has an introductory period of nine months during which purchases will benefit from a 0% APR, this card has an introductory period of only six months. To compensate for the shorter introductory period, this version of the card offers $20 cash back after you make your first purchase within three months of being approved. Discover provides the bonus in the form of a statement credit, so there are no points to redeem or check to request.
Citi Forward® Card for College Students. The Citi Forward Card for College Students makes the list of the best college student credit cards because it’s the only card that promotes responsible spending. If a student can make their payments on time for three months in a row and keep their balance under the credit limit, and make a purchase they will receive an APR reduction of up to 2 percentage points. A 13.99% APR would be reduced to 11.99%. In addition to the reward for keeping your balance under the credit limit, students will earn 100 bonus ThankYou® points each month they pay their statement on time, up to 1,200 bonus points pr year.
The Citi Forward Card for College Students comes with an introductory 0% APR on purchases for seven months with 1,000 bonus points after you sign up for paperless statements. With no annual fee, the Citi Forward Card for College Students is easily the best college student credit card.
Updated May 7, 2012 and originally published August 11, 2010. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.
Rank: Platinum
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What about using your personal banks student credit card?
The best thing to do is compare your bank or credit union’s student credit card offer with the others listed here. If your bank offers a better product, you might as well go with a card from a bank with whom you have an existing relationship.
What is the best credit card for a student studying abroad?