IT’S ACADEMIC
Students can benefit from charge acct.
HAD “THE TALK” yet with your college-bound kid?
No, not the ones about the dangers of binge drinking, casual sex or landing on the dean’s double-secret probation list.
Rather, it’s the frank discussion about the perils of being financially irresponsible as your child takes that first major step into young adulthood.
If one of the more important things students should learn during their college years is financial literacy, then one of the best ways to achieve that is by learning how to manage a credit card account, financial experts say.
“Student credit cards aren’t just a luxury — they serve a few important purposes as young adults begin to become fiscally independent,” Sean McQuay, credit card expert for NerdWallet.com, told the Daily News.
“First, they help build financial responsibility, which has lifelong dividends. Secondly, it allows them to start building their credit score early — which will help them save money on student loans, auto loans, and, when they’re more established, mortgages,” McQuay adds.
While there’s a handful of credit cards that cater specifically to college students and come with an assortment of offerings — including rewards, cash back and low foreign transaction fees for students who travel or spend a semester abroad — the main attribute young people on a budget should look for in their first card is the lack of an annual fee, according to CardHub.com.
Students who can pay their monthly balances in full should consider cards that offer the best rewards.
With the start of the fall semester approaching, here are some of the top credit cards for college students as recommended by the experts at personal finance sites NerdWallet.com, LowCards.com and CardHub.com.
Discover it for Students — New! Good Grades Rewards.
This card offers 5% cash back on categories including gas, restaurants and even Amazon.com purchases, plus 1% cash back on everything else you buy.
Its best feature: There’s no fee the first time you make a late payment. It also offers $20 cash back for each school year a student keeps his GPA at 3.0 or higher. No annual fee.
Journey Student Rewards from Capital One:
The account holder gets a bonus for being responsible: You get 1% cash back on all purchases, plus another 0.25% for paying the bill on time. You can also choose your own monthly due date. No annual fee.
BankAmericard Cash Rewards for Students:
The card comes with different levels of cash-back rewards that can quickly add up: 1% on every purchase, plus 2% on groceries and 3% on gas for the first $1,500 spent on combined grocery and gas purchases every three months.
It also offers a $100 cash rewards bonus after spending $500 or more within the first 90 days of opening the account.
Citi ThankYou Preferred Card for College Students.
Get rewarded for having a good time. The card gives two ThankYou program points — redeemable for merchandise, travel rewards, gift cards and more — for every $1 spent on restaurants and entertainment, and one ThankYou Point on other purchases.
There’s also a signup bonus of 2,500 ThankYou points after you spend $500 within the first three months of opening the account. No annual fee.
Capital One Secured MasterCard:
Students who want to build their credit score quickly (or have already damaged credit) may want to consider this card. It’s secured, meaning it requires a refundable security deposit that serves as your spending limit.
But unlike a prepaid debit card, secured cards are indistinguishable from regular cards on a credit report, so you can start building credit without the danger of getting in over your head by overspending.
On the downside, this card comes with a relatively high APR (annual percentage rate) of 24.9%, and doesn’t offer rewards.