Good Morning Everyone! It’s time for another post in our Credit Card Management Series.  Whether you are starting college or finishing college, it is important to have a good credit rating.  A good credit rating can help us get a mortgage, get a job, get an apartment, and also get a lease on a car.  The best way to establish a good credit rating is to start building a credit history early, use our credit card for the right types of purchases, and make our monthly payments on time.

There are several good credit cards available for college students.  Most financial institutions offer student credit cards as a part of their student banking package.  I definitely recommend that students apply for their first credit card with their primary financial institution.  Financial institutions offer student credit cards to their clients based on their existing relationship because college students usually don’t have an established credit rating.

There are credit card finance companies that offer credit cards for college students based on their school.  We can often find credit card finance companies on college campuses giving out brochures, and signing up students for their credit cards.

Student Credit Cards are usually offered with a $500 or $1000 credit limit.  If used correctly, our student credit card can help college students establish a good credit rating which will help us later in life.  Since students have little or no income during our college years, I suggest that we don’t charge anything over $100 on our credit card.  This will make sure that we are using our credit card to establish a good credit rating as well as keep our spending within our repayment limits.  It is not enough to have a student credit card, we have to use it and make payments on a regular basis.

Students should use their credit card for everyday purchases such as buying books, and grocery shopping.  College students should not use their credit card for personal shopping, dining out at restaurants, and partying or clubbing.  We should also not use our student credit card to buy coffee or fast food because it creates bad habits.  If we charge $5 to $10 on our credit card for meals once or twice a day it can definitely add up to a lot of money on our monthly credit card bill.

Good Credit Cards for College Students should have no annual fee and a low annual interest rate.  Student credit cards should offer a rewards/points/cash back program, as well as student discounts at local retailers.

Bank of America  offers their Student Platinum Plus Visa Credit Card with no annual fee and a low interest rate of 14.24%.  Bank of America encourages students to “Build your credit with a card designed around you.”

Citi Bank offers 4 different credit cards for college students. Citi Bank offers their student credit cards “with no minimum income or co-signer required, (they also) have low introductory (interest rates) on purchases.”

Chase offers college students a credit card that allows us to “benefit while you build.”

Photo by Smemon87