College Student Credit Cards
July 14th, 2009, Written By: Kerri Randall
When you’re in college, you learn the value of free stuff, and you learn it because you have no money! So when pre-approval offers for credit cards get dropped in your mail, they can be quite tempting. A credit card account can be a great way to start building the credit you’ll need throughout your life, but be sure to choose the right one, perhaps one geared toward college students, and manage it wisely.
A Few Notes
Before you get started, there’s one thing you need to drill into your head: A credit card is NOT FREE MONEY! You still have to pay for every purchase you make—just not right now. Once the end of the month rolls along, you’ll get your statement, and you’re expected to pay in full. If you start the habit of doing so, you’ll be less likely to live beyond your means or get a nasty surprise when you open your bill and remember that you bought pizza for your entire sorority with your credit card that one night and no one chipped in. If you start off only making minimum payments, your credit card debt could soon rival your student loan debt.
That said, there are a couple of cards directed toward college students that can help you along. You’ll need your credit score for a lot in the future, including securing a job and applying for your first home. Time is your best friend in establishing a high score, so you want to get started early and maintain good habits from the start.
CitiForward Card for College Students
The CitiForward Card for College Students is recommended because it rewards you for good behavior. If you stay under your credit limit and pay your bill on time for three consecutive billing cycles, your APR could be lowered by up to 2%. That could mean a lot to you down the road if an emergency arises or your credit somehow gets out of hand. You’ll start off with 0% APR for the first six months (but check the fine print to see what could jumpstart the APR ahead of time), and you’ll get 5000 bonus reward points for choosing paperless statements within your first three months.
Citi mtvU Platinum Select Visa for College Students
The Citi mtvU Platinum Select Visa for College Students is my personal choice. Here, you also get 0% APR for the first six months, and there’s no annual fee. You get 25 Thank You rewards points for each month that you pay on time and stay under your limit, and you get up to 2000 Thank You points twice a year for having a good GPA. You’ll get 250 points for a GPA of 2.5-2.99, 500 points for 3.0-3.49, 750 points for 3.5-3.99, and 2000 points for a 4.0. Sounds like great incentive to be studying rather than spending! You’ll get closer to rewards for free.
AccountNow Prepaid Visa
If spending too much would be a temptation for you, consider a prepaid card, like AccountNow Prepaid Visa. There is a $9.95 monthly fee, but you have a $10,000 balance limit (meaning you can prepay up to that amount), and since it’s prepaid, you can’t go over your limit or get stuck paying finance charges. You also get free bill pay and free Credit Builder—while it’s not technically a credit card, your payment history will be reported and will affect your credit score (hopefully boosting it).
Your best bet is to save your credit card for emergencies only, but it happens to all of us—that dress is just too cute or you have no cash but your friend flew in to hang out for the weekend. The key is to choose the right card and be responsible about your spending. Use your credit card as a means to build credit itself, and try not to spend more than you can pay off when your bill arrives.
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