OK grown ups, it’s time to start building credit. Many people don’t realize this, but if you can build your credit and develop the habits of a responsible card user, you are setting yourself up for a very bright future. I personally use credit card points to travel the world. They pay for my tickets, hotels and more! Once you build credit and understand the game, you will be ready to sky rocket your life game!
There are a lot of cards on the market today. The offers may vary and you should take time to weigh your options. One thing about being grown though, you gotta have credit. Here are a few options to start your trip down that credit rabbit hole.
The Citibank Thank You Preferred Card for college students. This type of student credit card is most applicable for the demanding needs of most college students. In an easy light, the Citibank platinum student credit card contains 0% APR within the introductory phase covering a period of seven months. Meaning, the purchases made in the first six months will earn zero interest rate. The cards reward program caters to the college life with double points for restaurants and entertainment. You also get 2500 points after spending 500 in purchases your first 3 months. The application is quite easy because no co-signer is demanded for.
The Discover it student credit card. As we all know, it pays to discover. This card ups that one time by giving a dollar to dollar match on the cash back earned at the end of your first year. It gives a good grades reward of 20 bucks if your GPA is higher than 3.0 for up to 5 years. There’s no annual fee. There’s a 5% cash back on rotating programs (pay attention) and one percent back on all other purchases. For mom and dad, there’s a FREEZE It option that allows the card to be turned off for new purchases, cash advances and balance transfers.
People’s United Bank MasterCard College Rewards. MasterCard is always a solid staple for your wallet as it’s accepted basically everywhere! This is a great introduction to credit card that’ll provide you a point for every net dollar you spend. They’ll also provide 500 reward points by enrolling into an auto-pay (which you should always do) and 500 reward points for enrolling in e-statements (save the trees y’all). As of the time of this writing the APR can range from 12.74% to 23.74% variable. Those bills can stack up fast if you don’t control it!
The Capital One Journey Student Credit Card
This is a great starter card to help you build your credit and get some cool rewards. You earn 1% cash back and a pay on time boost to your cash back to a total of 1.25% for that month. You get paid to develop good habits! You get unlimited access to CreditWise from Capital One and there is no annual fee. Now make sure you pay your bills because the APR is 20.74% variable. One final cool note, you’ll get some of those platinum benefits such as 24 hour travel assistance, auto rental insurance and travel accident insurance!
Secured Card for Students US BANK
This is a different kind of card. You have to put up your own collateral here, so put up or shut up! Here’s how it works. You initially find the account with your own money. You could fund anywhere from $300 – to say $3,000. That’s now going to be your credit line. You initial deposit earns interest in a secured savings account and you use your card and pay it off as any other card. They report the results to all 3 credit agencies and you are not a credit worth borrower! Typically after a year, they’ll allow you to apply for an un-secured card and you can get your money back.
There is plenty of information available online about student credit cards and the offers that come alongside them. It’s important that you take credit seriously. This isn’t magic money and spending recklessly, like anything else in life has it’s consequences. Now go and be wise, grown up!