Millennials are now the largest generation in the U.S., representing more than a third of the population, and making up almost a third of all new hires. More than any other generation, millennials value financial independence, which has led to an increase in young people applying for credit cards. However, college students and recent graduates often have limited or no credit history which can make it challenging for them to get approved for a credit card. Learning how to build up your credit as a student is important so you’re prepared when you enter the real world and want to buy a house, car or even rent an apartment. That’s why we’ve put together this list of some of the best credit cards for students that are not only easy to get approved for but also have low interest rates and require no annual fee.
What You Need To Know About Student Credit Cards
Credit cards are a great way to build up your credit history and are also a useful tool for emergencies. If you have a credit card, you can use it to pay for unexpected car repairs, medical bills, flight or train tickets if your booking is cancelled or you are delayed, or even to book a hotel if you need to stay somewhere due to inclement weather or a family emergency. You should only charge what you can afford to repay as that’s the best way to build up your credit. You can apply for a credit card as a student but know that the card issuer will look at the overall picture of your finances and will be likely to approve you for a lower credit line than if you were an adult with a long credit history. That’s because students don’t have a long credit history and so credit card issuers don’t have as much information on you as they do on an adult cardholder. That doesn’t mean you can’t get a credit card as a student, but it might mean you’re approved for a lower credit line and higher interest rate.
Which Card Is Right For You?
The U.S. Bank Visa Card for Students – This card is currently offering a 0% APR for the first nine months and an ongoing APR of 13.49% – 23.49% Variable. There is a $25 cash back bonus for new cardholders. There is also no annual fee. This card is great for students with excellent or good credit who want a low interest rate credit card. Discover it Student Credit Card – This card has no annual fee and offers a 0% introductory APR on balance transfers for the first fifteen months, after which there is an ongoing APR of 9.99%. It features cash back rewards on certain purchases, and payments can be automatically deducted from your checking account. Students with good credit who want a low interest rate credit card plus rewards should consider this card. Students with fair or poor credit should look for another option. Capital One for Students – This is a good card for students with a limited credit history and fair or poor credit. There is no annual fee and the ongoing APR is 26.99% Variable. There are a few things to note about this card. First, it is a secured credit card, which means you need to put down a security deposit in order to be approved. Second, you’ll need a co-signer if you want a credit limit over $500. Third, you’ll need to make at least one payment every ninety days to keep this account open. While this card doesn’t have a great interest rate, it is a good option for students with fair or poor credit.
Bottom Line
Credit cards are a great tool for building credit, provided you use them responsibly. What’s more, they can also be a useful financial backup. However, if you don’t have a credit card, you won’t be able to build up a credit history, which could make it harder to get a car loan, a mortgage, or a rent an apartment at some point in the future. So, if you don’t have a credit card, it makes sense to get one as soon as possible. Then, use it responsibly and you’ll soon be able to boast about your excellent credit rating.