Best Student Cards of 2016
Like many of you reading this post I am currently in the last semester of my undergraduate career, and about to be financially independent for the first time in my life. I understand that this can be an extremely stressful and confusing time, but a lot of that stress and confusion can be eliminated out of the equation by having a plan, and a strategy to execute that plan.
For me, my strategy throughout life if to accumulate wealth by investing in real estate. Sounds easy enough. Now of course I will need money to start investing and that won't come until I actually start working and saving the money I earn, but there is something I could be doing now as a student to help me accomplish my plan later down the line-- building credit! Building my credit now will help later on when I find a deal I want to invest in by allowing me to borrow larger amounts of money and getting better terms on my loans, which is an essential aspect of real estate investing. So I set up a meeting with a credit specialist named Joel Maloney and learned the most effective strategies for me to build credit as a student with an average credit score and limited funds. Joel told me to take out 2-3 credit cards under my own name independent of my parents and spend equal amount on each card while never allowing any revolving debt to occur. This meant that I would have to pay every single payment in full and on time to maximize the amount of credit I would build. I understood what I had to do and the only real question left was with the hundreds of options available out there, what are the best credit cards for students to apply for?
In this article I am going to give you the breakdown on the top three credit cards I recommend for students and why they are at the top of my list.
First up is the Discover It For Students- Good Grades Rewards.
This card offers 5% back on rotating categories each quarter and the average 1% cash back on all other purchases. They also double all your cash back bonus points at the end of your first year. If your GPA is 3.0 or you also get an extra $20 cash back each school year for up to 5 years. One perk targeted towards a first time cardholder is that your first late payment fee will be waived off and your credit will not be damaged by the late payment. This is just in case you make a mistake while learning how to pay off your credit card statements and a nice safety buffer. One of my favorite things about this card is that every month in addition to your statement they send you a free credit report, so you can track you credit improving every month and follow your progress and in my case my goal to build credit. The card also doesn't have any foreign transaction fees but remember the one pitfall of this card is that Discover is not widely accepted overseas, so it may not be the best card to take with you on a semester abroad or a summer vacation.
My second favorite card is the Chase Sapphire Preferred.
This card is a little tougher to get accepted for than the Discover It, but its rewards are just as impressive. This is a great card to have if you love to travel, and an especially rewarding card if you spend $4,000 within the first 3 months of opening the card because if you do you will receive a 5000 travel points bonus which is about $700 in rewards points that can be redeemed on travel at a 20 % discount on all regular prices. Yes it may be difficult for a student to pull that off but if you can get help from a parent and pay a few months of rent through the card it can be very achievable. This card also offers 2% cash back on dining at restaurants and all travel. It also has no foreign transaction fees and makes for a better addition abroad than the Discover It.
Last but not least is the Chase Amazon Rewards card.
Like many other college students I am a huge amazon user and this card makes a lot of sense if your a frequent amazon shopper. It easily accepts students and offers 3% cash back on all purchases through amazon, 2% cash back on all dining and gas stations, and 1% cash back on all other purchases. You also receive $80 dollars amazon credit once accepted. It's a solid card for any student who spends a decent amount on amazon, dining, and gas.
Remember it is important to conduct your own research as well when choosing your credit card options because a lot of the choosing process is based on your personal preference and your spending habits. These are the three cards I recently applied for and so far I am very happy with my decisions and knowing that I am on track to execute my long term plan of investing in real estate. So now when I am 24 years old with a steady income and find the first deal I want to invest in I will be prepared with a strong line of credit.
Also for anyone who may be curious you are entitled to one free and official credit report a year. Otherwise you can get an estimate on your credit score with the Discover It card each month or you can get an estimate from a site like www.Experian.com
Links to Sources:
McGuire, Virginia C. "Best College Student Credit Cards of 2016 - NerdWallet." NerdWallet. N.p., 4 Apr. 2015. Web. 11 Feb. 2016.
https://creditcards.chase.com/credit-cards/sapphire-preferred-card.aspx?B7C3=FH24R8&CELL=6248 (Original Content from Website)
https://www.chase.com/credit-cards/amazon/amazon-home (Original Content from Website)
https://www.discover.com/credit-cards/student/ (Original Content from Website)
Great article. Very relevant, thorough, and informative. You not only explain both pros and cons of each card, but you also talk about the ramifications and terms of them too. I think it is great to begin the article with your personal story and stating your goals. That being the case, it could be interesting to hear a more step by step timeline of how building your credit will develop and lead into you buying your first property. That timeline would take this to the next level.
ReplyDeleteI loved that you covered a topic that is so applicable to many of the students in this class, including me. I learned a lot just by reading through this and appreciated how you clearly outlined the perks of having each card. The visuals of each card also makes the article more attractive to the reader. I would bold the headings to make them stand out more instead of having them look like their own separate line of texts. Great job though!
ReplyDeleteAfter reading your article, I looked more into the amazon chase card and highly considering getting one under my name. Comparing and selecting credit cards are adult life choices that students do not understand until they are out of college. Your article offers 3 great choices to choose from and guidelines for what makes the card amazing. You may also want to go more in depth with how exactly the credit card will help you build credit score and common mistakes that will hurt your credit score.
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