When choosing a good student credit card, it’s important to consider several factors. Look for cards with no annual fees, as this can save money, especially for students on a budget. Additionally, ensure that the card reports to all three credit bureaus, as this can help build a strong credit history. It’s also beneficial to choose a card that doesn’t charge foreign transaction fees, particularly if studying abroad is a possibility.
Furthermore, it’s essential to compare the fine print of each card, including the credit limit, rewards program, introductory and standard APR, welcome bonuses, and foreign transaction fees. Understanding these details can help students make an informed decision and maximize the benefits of their chosen credit card. By considering these factors, students can select a credit card that aligns with their financial needs and goals, while also helping to build a positive credit history.
The Differences Between A Student Credit Card And A Regular Credit Card
The main differences between a good student credit card and a regular credit card are:
Student Credit Card:
- Designed for students with little credit history.
- Typically has lower credit limits.
- May have different credit score requirements.
- Offers tools and resources to help students monitor their credit usage and make payments on time.
- May have introductory 0% APR offers.
- May have fewer fees compared to regular credit cards.
Regular Credit Card:
- Not specifically designed for students.
- Typically has higher credit limits.
- May have stricter credit score requirements.
- Offers a wider range of reward options to cardholders with good or excellent credit.
- May have more fees compared to student credit cards.
When choosing between a student credit card and a regular credit card, consider your credit history, financial needs, and the specific features and benefits offered by each card. Student credit cards can be a valuable tool for building credit history and learning responsible financial management, while regular credit cards may offer more rewards and benefits for those with established credit histories.
Type Of Student Credit Card
The Apple Card is issued by Goldman Sachs and Mastercard.
Capital One issues the Capital One student credit cards, including the Journey Student Rewards and the SavorOne Student Cash Rewards.
The Chase Freedom Student Credit Card is issued by Chase.
Discover issues the Discover Student Credit Cards, including the Discover it Student Cash Back and the Discover it Student Chrome.
These credit cards are designed to meet the specific needs of students, offering various benefits such as cash back rewards, no annual fees, and introductory APRs. When choosing a good student credit card, it’s important to consider individual spending habits, credit history, and the specific features and benefits offered by each card.
Comparison Of Student Credit Cards Canada
There are 4 type of student credit cards. Here is a comparison of the Apple Card, Capital One, Chase Freedom Student Credit Card, and Discover Student Credit Card:
Apple Card:
- Offers 3% cash back on purchases from Apple, 2% on transactions via Apple Pay, and 1% on all other purchases.
- Cash back is deposited daily (after purchases clear) into your account.
- No annual fee.
- Made of metal, giving it a premium feel and look.
- May be less flexible as it is tied to the Apple ecosystem.
Capital One:
- Offers a range of student credit cards, including the Journey Student Rewards and the SavorOne Student Cash Rewards.
- The Journey Student Rewards card offers 1% cash back on all purchases, with the potential to earn up to 1.25% cash back for paying on time.
- The SavorOne Student Cash Rewards card offers 3% cash back on dining, entertainment, and grocery purchases, and 1% cash back on all other purchases.
- Both cards offer no annual fee.
- Capital One student credit cards are available to people with average credit.
Chase Freedom Student Credit Card:
- Offers a 1% cash back on all purchases.
- Charges a 3% fee on foreign transactions.
- Provides a 0% APR for the first 15 months on new purchases (then a variable APR of 14.99% to 23.74%).
- Does not charge an annual fee.
Discover Student Credit Card:
- Offers the Discover it Student Cash Back and the Discover it Student Chrome, both with different cash back rewards and benefits.
- The Discover it Student Cash Back offers 5% cash back on rotating categories (up to the quarterly maximum) and 1% cash back on all other purchases, while the Discover it Student Chrome offers 2% cash back on gas and dining and 1% cash back on all other purchases.
- Does not charge foreign transaction fees.
- Provides an introductory 0% APR for six months on purchases.
- Offers no annual fee.
In summary, the Apple Card offers cash back on Apple-related purchases and has a premium feel, while Capital One offers a range of student credit cards with different rewards programs. The Chase Freedom Student Credit Card offers a flat 1% cash back on all purchases, a 3% fee on foreign transactions, and a 0% APR for the first 15 months on new purchases. The Discover Student Credit Card offers different cash back rewards, no foreign transaction fees, an introductory 0% APR for six months on purchases, and no annual fee. The choice between the four depends on individual spending habits, the preference for foreign transactions, and the specific cash back rewards offered.
