Top 5 Credit Cards for College Students: Build Credit and Earn Rewards
Top 5 Credit Cards for College Students: Build Credit and Earn Rewards
Whether you're heading to a local university or venturing to a school across the country, embarking on college life is a major transition. It's a time marked by new friendships, newfound freedoms, and significant responsibilities. One of the most pressing responsibilities for many college students is managing finances, especially as the "Bank of Mom and Dad" is no longer an option. This often raises the question: Should you get a credit card, and if so, which one?
Before diving into options, it’s crucial to understand the seriousness of credit cards. They require careful management; missed payments and late fees can quickly accumulate, impacting your long-term financial health. If you can handle a credit card responsibly—using it only for necessities and ensuring timely payments—getting one early can be a smart financial move. It helps build your credit history and may offer valuable rewards.
When selecting a credit card, students have several excellent options. Here’s a look at some top choices:
1.Chase Freedom Unlimited®
The Chase Freedom Unlimited® stands out as one of the best no-annual-fee credit cards available. It offers unlimited 1.5% cash back on every purchase, with enhanced rewards in specific categories: 3% cash back on dining and drugstore purchases, and 5% cash back on travel booked through Chase Travel℠ and Lyft rides (until March 2025). New cardholders can earn an additional 1.5% cash back on up to $20,000 spent in the first year, potentially totaling $300 cash back. This card also helps you earn Chase Ultimate Rewards points, which can be combined with other Chase cards for enhanced travel benefits.
2. Bilt Mastercard®
For students who face high rent payments, the Bilt Mastercard® offers a unique benefit: earning points on rent payments without extra processing fees. It’s useful for off-campus housing but not for campus room and board. Beyond rent, the Bilt Card earns 1 point per dollar on everyday purchases, with bonus points in select categories like dining (3x) and travel (2x). Bilt points can be redeemed for travel, Amazon purchases, or merchandise, making this card a versatile choice.
3. Capital One SavorOne Student Cash Rewards Credit Card
Capital One’s SavorOne Student card is ideal for students who spend on dining, entertainment, and streaming services. It offers 3% cash back in these categories, plus 1% on all other purchases. New cardholders can benefit from a welcome offer and earn additional cash back on Uber and Uber Eats purchases. The card also pairs well with Capital One’s travel cards for those looking to maximize rewards in the future.
4. Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card provides a $200 cash back bonus after spending $500 in the first three months. It also offers unlimited 2% cash back on all purchases, which simplifies earning rewards without tracking categories. Additionally, it includes up to $600 in cell phone protection, providing extra peace of mind for students with mobile bills.
5. Citi Double Cash® Card
The Citi Double Cash® Card is known for its straightforward rewards: 1% cash back on purchases and an additional 1% cash back when you pay your bill, effectively making it a 2% cash back card. It also has a $200 bonus offer after spending $1,500 in the first six months. The simplicity and high rewards rate make it a strong choice for students starting with credit.
Tips for Getting Started with a Credit Card
Credit cards are a serious responsibility. While they offer valuable rewards, they should not lead to debt. If you're not ready to manage credit responsibly, stick with cash or debit. However, when used wisely, credit cards are excellent tools for building credit and earning rewards on purchases. Remember, some schools may allow you to pay tuition with a credit card, but be cautious of processing fees that could offset your rewards.
Application Tips
When applying for a credit card, use a permanent address, like your home address, rather than your college address, unless you have proof of residency. For income, include all sources, such as parental support or scholarships, to present a complete financial picture. Many student cards are designed for those with limited credit histories, so don’t worry if you’re just starting out.
Bottom Line
As you prepare for college, deciding on the right credit card can be pivotal. While credit cards are significant financial tools, they can help build your credit and offer rewards if used wisely. Evaluate the fees, benefits, and rewards of each card to find the best fit for your needs.
