If you’re a young student, you probably don’t have a ton of experience with credit cards or building your credit history. Now is not too late to start building credit, though! It’s important to have a good line of credit built up for major purchases like a mortgage or a car loan.
We found the best credit cards for students who are just starting out with a credit card. These usually have low credit limits, reasonable APR’s and perks that appeal to college students. Such as cash back on gas, groceries, eating out and other routine purchases.
Journey Student Rewards from Capital One
Perks:
- Cash back program; earn 1% cash back on all purchases and get a 0.25% cash back bonus each month that you pay your statement on time. Redeemable as statement credit or check.
- Automatic credit line increase after 5 months of on-time payments.There’s no annual fee or foreign transaction fee.
- No introductory APR.
- The Capital One CreditWise feature includes a “what-if simulator” that you can use to predict changes in your credit score and debt load based on hypothetical financial actions and events.
Capital One Secured Mastercard
This card builds your credit with responsible card use. This card isn’t just for students, it’s for anyone who is struggling with credit, whether is be poor or spotty. This card is useful for those who want to build credit over time.
Keep in mind, before you start spending, you need to make a cash deposit of $49, $99, or $200. The deposit entitles you to a credit limit of anywhere from $200 to $1,000, depending on your creditworthiness. You can subsequently raise your credit limit by making an additional deposit. Your deposits don’t get accredited to your purchases and you will need to continue to pay your bill every month.
Perks:
- No annual fee or foreign transaction fee.
- No introductory APR.
- CreditWise is offered through this card.
Citi Rewards Student Card
This card is good for students who spend a lot on gas and groceries.
Perks:
- Spend at least $500 in eligible purchases on your card within 3 months of opening your account, you’ll earn 2,500 bonus ThankYou points. Redeemable for a $25 gift card.
- Earn 2X points on eligible supermarket and gas station purchases, up to $6,000 in combined category spending per year.
- All other eligible purchases earn unlimited 1X points, including supermarket and gas station purchases above the category caps.
- No annual fee or foreign transaction fee.
- 0% purchase APR for 7 months from your account opening date.
Wells Fargo Cash Back College Card
This card offers the best rewards program for students.
Perks:
- Earn 3% cash back on gas, grocery, and drugstore purchases for the first 6 months your account is open.
- Earn unlimited 1% cash back on all other eligible purchases.
- Redeem your cash back for statement credits, bank account deposits, paper checks, and non-cash items such as travel and entertainment, generally at a $0.01-per-point rate.
- No annual fees.
- 0% purchase APR for 12 months.
Being a college student is a fun time in life. But the fact of the matter is – you’re kind of poor. Which can make it seem nearly impossible to build credit. However, these cards have made it easier for students to build credit and get started on their financial journey.