Is there an ideal credit card for college students? Do college students even need a credit card?
I never mentioned it here and I’m really not sure if any of you guys caught it, but I was on the Willis Report on Fox Business News a few weeks ago. It was the Friday before Labor Day weekend. The producer called me to ask me if I would come on the show to talk about credit cards as they pertain to college students.
The original idea for the show actually originated from my post where I covered the best credit cards for college students. The producer originally wanted me to go over what was needed for a credit card to be suitable for a young college student. Since that topic was never covered on the show, I wanted to discuss here what is needed to find the best credit card for college students:
No annual fees. This is a must. Your first credit card as a college student should come with no annual fees or any other hidden fees. You don’t want to start paying money before you even use your credit card.
Cashback rewards. I strongly feel that cashback rewards (usually at 1%) are much better than points based credit cards for college students. The cash you earn won’t allow you to retire early, but it’s much better to receive money from your credit card than to have to pay money. Also, most college student credit cards come with a low limit so paying for points credit card wouldn’t be worth it.
Fair limit. You want to start off at about a $500 limit for your very first credit card. As you begin to use your credit card as a financial tool over time, you should be allowed to gradually increase your credit limit to a number that you’re comfortable with.
Exceptional customer service. It can be a very scary process to have your credit card stolen or to have to deal with any other issues that may arise with your credit card. A credit card company that offers quick and responsive customer service definitely needs to be favored. Nobody wants to be put on hold for 30 minutes after their credit card has been stolen.
A few of the best college student credit card options
Don’t forget to check out my previous debate on credit cards for college students.
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Great advice on credit cards. I personally use the Discover Student Card (especially because it did not require any previous credit history to apply). I have a post about the hidden benefits and rewards of credit cards on my blog studentfinancialadvice.blogspot.com Feel free to check it out!