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
Citi Forward® Card for College Students. The Citi Forward® Card for College Students is the top pick for best college student credit card because it’s the only card that promotes responsible spending. If a student can make his payments on time for three months in a row and keep their balance under the credit limit, he’ll 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.
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.
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. All other purchases will earn 1% cash back. This card does not carry an annual fee. The bank includes an introductory offer of 0% APR on purchases for 7 months for the Citi® Dividend Platinum Select® Card for College Students, and the regular APR is 13.99% to 21.99% variable – good for a student credit card.
Journey℠ Student Rewards Credit Card. The Journey℠ Student Rewards Credit Card is a mixed bag, and prospective cardholders should be aware of the benefits and drawbacks. Cardholders will receive 1% cash back on all purchases, with a 25% bonus in cash back if the bill is paid on time each month. There is no introductory offer for the Journey℠ Student Rewards Credit Card. If you plan to carry a balance from month to month, this card isn’t for you, due to the higher than average interest rate. Average credit is required for this card and it has no annual fee but a purchase APR of 19.8% should make you think twice before applying.
Discover® Student Card. The Discover® Student 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. After that, cardholders will earn up to 1% cash back on all purchases, still with the 5% Cashback Bonus®* opportunity. The Discover® Student Card does not have an annual fee.
Citi® mtvU™ Platinum Select Visa® for College Students. If you’re a student with a great GPA, then you’ll want to consider the Citi® mtvU™ Platinum Select Visa® for College Students. It’s the only card that rewards good grades. Twice a year, students can earn up to 2,000 bonus ThankYou® points for submitting their report card. Students can earn five ThankYou® points for each dollar spent at restaurants, bookstores, record stores, movie theaters and video rental stores, and one ThankYou® point for all other purchases. The Citi® mtvU™ Platinum Select Visa® for College Students offers a 0% APR on purchases for seven months and does not carry an annual fee.
Updated February 3, 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?