Helping your college-age children to better understand their financial realities and to best plan for their futures is a very important lesson. Imparting this knowledge to them successfully will help them to begin adulthood with better chances of financial success. One way to help them to learn how to budget and manage their monthly cash flow is through student credit cards. These cards also offer the added advantage of helping children build strong credit profiles as they navigate their credit cards prudently and within the terms of all account agreements.
The Journey Student Rewards card issued by Capital One offers 1% cash back on all purchases as well as other popular rewards. While there is no annual fee or charges for using the card internationally, this card does carry a higher than average APR which can be a turn off for students that qualify for other cards. Capital One will increase the line of credit after five months of on time payments which is appealing to many college students. Fees for cash advances equal $10 or 3% of the amount advanced. If the student does make a late payment, it will cost them $35.
Discover it for Students is another good option for college students just starting out with building their credit history. All purchases earn 1% cash back, and there are rotating categories that will pay 5% during their specified cycle. This card is only available to students that already have a credit history and one that is excellent, at that. If your child is just beginning their credit journey, this card will not be an option for them until they have some successful credit history under their belt. This card offers an introductory rate of 0% for the first 6 months and a 10.99% balance transfer rate for the same time period.
Upromise World MasterCard is issued by Barclays Bank and offers the added advantage of being able to connect the card to a 529 savings plan. It is necessary to sign up for a free Upromise account, which is quick and easy. There is a $50 sign up bonus when you use the card within 90 days of opening the account. Balance transfers made within the first 45 days of having the account will enjoy a promotional rate of 0% for the first 15 months. There is no annual fee for Upromise cardholders.
These student credit cards offer a great way for young people to start building their credit history while also learning about everyday financial management. If you are a college student or the parent of one, take a look at these top student credit cards to find one that will meet your credit needs while providing valuable real-world money management experience. Having a strong credit profile will also help you as you graduate from school and join the job market. A strong financial education foundation will serve you well into the future and help you to avoid the many pitfalls that exist in managing your personal finances.