Best Credit Cards for Students

Years ago, students, particularly those who have reached 18 years old, could easily get a credit card. Since the implementation of the CARD Act of 2009, though, it has become a lot harder for students under 21 years of age to get their own plastics for personal use. The Act aimed to protect students from debt while they are still in college.

Nowadays, a wide number of cards are available for students who are able to meet the requirements set forth by the CARD Act.  Given the huge number of cards today, it may be challenging to narrow down the list to get the best credit cards for students.  Nevertheless, here are the most valuable cards that you can start with as you shop around for your first plastic:

JourneySM Student Rewards from Capital One®

This is one unbeatable card equipped with tons of features for students. It is a cash back rewards card that will let you earn higher than the standard 1% for every dollar you spend. You need to pay your balances on time, though, to keep your rewards. Clearly, it teaches students how to build their credit history the right way. This is also ideal for students who are planning to study abroad since this does not have foreign transaction fees.

Citi® Dividend Platinum Select® Card for College Students

You can apply for this card even if you have no co-signer. However, you must meet the income requirements to qualify for the card. This is a well-known rewards card especially designed for students who are establishing their credit history. While you spend credits on purchases at drugstores, gas stations, supermarkets, and others, you earn 5% cash back during the first six months of card opening. There are rotating categories that you can sign up for to earn more bonus points. All other purchases you make that do not fit in the category will still be rewarded.

Discover® Student More Card

With this card, you are permitted to present a co-signer in case you are below 21 years of age and are not earning income to pay your bills. The interest rates are competitive, even for those who do not have credit history yet. The average credit limit is reasonable. The not too high limit keeps you away from being lured to spend more than you can afford. The rewards are great just like most student cards, but note that it is capped at $1,500 only.

Wells Fargo Cash BackSM College Visa® Card

If you have good credit and you wish to maintain it, this is a good card to consider. It is one of the few cards that have low interest rates for students. This is not recommended for those who are planning to go and study abroad, though, as it charges high foreign transaction fee. There is an introductory period where you get to purchase whatever you want without incurring interest. Note that you have to make at least the minimum payment to take advantage of the offer for six months.

The best credit cards for students not only come with great rewards. They should also have reasonable fees and educational tools to help the young ones manage their credit responsibly. When searching for your own card, carefully weigh the features of each and pick the one that can give you the most rewards. 

Things to Consider When Getting a Credit Card for Your Teen

Deciding whether or not you should give your teen a credit card is a big decision to make. You will be giving your young child the huge responsibility of managing his or her own finances. It can be quite scary, especially since many adults have fallen into debt nowadays. Teens that are not well informed about improper credit card use can face serious troubles, including debt. It is of great importance that as a parent you are able to guide your child in managing and using the plastic.

Picking the Right Card for Your Child

Once your son or daughter has come of age, it may be time for you to shop for your child’s first card. There are several credit cards for students that you can choose for your child. Here are a few things that you should reflect on while in the process of searching for the best option:

• Spending limit. High spending limits allow your child to spend more than he or she can afford. This could result to missing repayments and, eventually, debt. It may be a much better idea to go for a card that allows you to set the limit yourself. This enables you to control your child’s spending while giving him or her enough freedom to make purchases.
• Secured card. A secured card is a viable option for your teen, especially while you are still in the stage of teaching your child how cards operate. A secured card works just like a traditional credit card, but your child can only spend the amount that you have deposited in his or her account. If your child misuses the card, you always have the option not to make a deposit, thereby controlling how your child spends on his or her credits. 
• Joint card vs. standalone card. You can choose to give your teen either a separate card or a joint card. The latter is basically a card that is an extension of your existing one. With a joint card, you have the ability to monitor how your child spends the credits. When you see that your teen is savvy enough to be financially stable, you have the option to cancel the account connection and get your child his or her own separate card.
• Account number. Depending on the card that you have chosen, your child may be given his or her own card number if you ever choose a joint card. The other number can actually be beneficial for both you and your child in the event that you lose your card or it gets stolen. 
• Fees and Conditions. Do not forget to keep your eye on the card agreement. There can be terms and conditions that are too complex for your child to grasp. Make sure that you explain everything to your teen. Among the fees that you should watch out for are the annual fees, over the limit fees, finance charges, and the interest rates. It is always advantageous if your child completely understands what these fees are and how to avoid them. For instance, the interest rates are only levied on people who carry a balance. It is also wise to get your child a card that does not have an annual fee.

Remember that credit cards are not created equal. While there may be a number of cards that are made specifically for students, not all of them may fit your child's needs. As such, weigh things first carefully before deciding on a particular card for your teen.

Instant Approval Student Credit Cards

Obtaining your first ever credit card can be liberating. A few years back, you had to wait for weeks up to a full month to find out if you have been approved or not. Now, you can expect the answer in just a few minutes when you apply for instant approval student credit cards. There are several creditors today that promote such type of card, including American Express, Discover, and Capital One.

Misinterpreted Term

If you have received an email with a list of instant approval cards for students like you, don't get too excited. Instant approval does not necessarily mean that you will get the card that you applied for. It actually denotes "instant response" since you frequently have to wait 60 seconds. Many applicants find the term misleading.
Most of the time, student cards that approve instantly have credit rating requirement. If you wish to increase your chances of getting approved, you need to build your credit history first. Ninety nine percent of applicants with excellent credit get a nod from the creditors. Those that have bad credit or limited history may find it difficult to get accepted. Hence, the misconception occurs.

Successful Application

There are a number of individuals that get turned down even when they have excellent credit. One common reason is that they have carelessly filled out their application form. It is essential that you complete your form with all the right details to secure your credit line request. When applying for a student card, the process is pretty much the same with traditional cards. The requirements include:

• Your age - You should be at least 21 years old with a Social Security Number.
• Age exception - Those who are 18 years old can also get a card provided that they have a co-signer or that they are able to prove that they can pay their balances monthly.
• Personal information - Aside from your age, you should give your full name, your address, contact details, and information about your school.
• Financial details - You also need to provide your income information (if available), your bank accounts list, and the type of credit lines you have.

Choosing the Best Student Credit Card

At present, you have plenty of choices, which may make it a bit confusing for you to select the best out of the best. The general rule here is to find a card that comes with the lowest interest rate possible and with high credit limit. Unfortunately, not all creditors are willing to take the risk since you are still a student with limited or no income. In addition, an account with high credit limit can be too tempting because you are given more than enough credits to spend.

The good thing about high interest rates is that they teach you how to become a good card holder. If your card has high APR, you will be forced to repay your balances to avoid incurring interest. Make sure that you compare all the available options, including their rewards, grace periods, and intro APR. It is best to go for a student card that comes with low to zero annual fee.