Ahhhh, credit card for college kids, where it all begins 🙂
I just have one rule, and that is: Don’t get a credit card if you aren’t working.
Good luck kids! Better to spend now and overextend yourself earlier rather than when you’re making money in a full-time job. More painful later in life!
The Discover Student Card and Citi Forward are a close first and second. One thing I love about the Discover Student Card is that its reward system is the same as the More card, so you’re really getting all of the benefits of Discover’s premiere card, but obviously the APR is a bit higher because it is a student card.
@Eric and CreditShout
I’ve always had good experiences with Citi cards. For those less familiar with the Citi Forward card — it just got introduced in the past year, and aims to reward its cardholders for good behavior. So in that sense, this card is “unique”.
@Financial Samurai,
Yes, credit cards for kids is a debatable issue, but exposure to this has to start somewhere (at the very least, for the education). I received my first card in my early 20′s without the benefit of some “guidelines” except for one: do not use your card unless you know you can pay it off completely every month. And this piece of advice just stuck. I’ve never wavered because I always equated card use with cash use.
If you imagine more cash flowing out whenever you pull your card out at a cash register (than if you simply used cash), maybe it will deter you from using the credit card as often.
@SVB – Yep, I agree. I don’t necessarily think it’s bad to expose young folks to the allure of credit cards early. It really is better to mess around and have some slip ups before things get out of hand.
When I say “don’t get until you work”, I mean working during college. As soon as you start working during college, you recognize the value of money more (b/c $8-9/hr is kinda painful), and you won’t go overboard in CC spending.
AndrewNovember 17, 2009 at 2:56 pm
I have the Discover card, not sure if it’s the student one or the “Open Road” one – but I use it strictly for gas/auto repairs. I’m able to pay it off in full each month, and it’s really worked out great when my transmission went out last month and not everything was covered by insurance 🙁
Regardless, I’d recommend that one for anyone looking for an introductory credit card to start to build their line of credit.
Just my two cents: If you get a CC, use it for one or two routine purchases and that’s IT. i.e. gas, groceries, etc.
JoelNovember 17, 2009 at 10:47 pm
@ Financial Samurai
You make a great point in that some well meaning parents simply pay off all of their kids’ credit card bills which although it is beneficial in that it helps them build credit history, it is disastrous in teaching the kids how to manage credit responsibly.
DavidNovember 21, 2009 at 4:47 pm
Citi was my first credit card as a college student, and I had no complaints. Fortunately, I didn’t get into debt problems, and it allowed me to build by credit history early on. Financial Samurai’s suggestion to only get a card if you have a job is a great tip. It was my job in college that kept my debt under control.
JohnJanuary 19, 2010 at 11:38 pm
Credit cards for students have been used by lots of young adults to build credit score. However they should learn how to manage their accounts and should limit their use of it to avoid big debt problems in the future.
RichardJanuary 27, 2010 at 11:54 am
New laws affecting the credit card industry my soon make getting a credit card as a student a thing of the past. New laws will require the student to have a job or a parents co-signature to apply for a credit card. The best option will be going with a pre-paid credit card such as the Mango MasterCard that has no fees with a monthly deposit. These types of cards will allow students to still have the benefits of a credit card for online purchases, gas, food, etc. while parents have the ability to re-load the card, watch their students spending and help teach the student money management and responsible spending without the huge interest fees and other drawbacks of a traditional credit card for students.
RowenaJuly 12, 2010 at 11:23 pm
Only get a credit card if you have money to pay for it later or if you’re parent are financially well. But it is more advisable to get a credit card if you are already working and can pay for your debts responsibly.
CarrieOctober 28, 2010 at 7:34 am
Student cards can be dangerous in the wrong hands but I started out with them right after I got my first job. I made some bad mistakes but learned things the hard way.
@Carrie. I agree with you 125%. Credit cards are dangerous and students often get into trouble with cards right away. The Credit card issuers know that they can feed on students and parents will often bail them out. And schools are in on this too, including Yale University, which accepts payments for allowing credit cards to come on campus. Is there any Credit Card 101 class being taught yet? I doubt it.
I remember my first credit card. My parents received the bill and paid it, but I also saw the bill. After seeing the bill a few months in, I cut back dramatically, because I started to realize I was overspending. I had already started to log my cash expenses the first month of school and started to log credit card expenses as well.
Brian @ Highly RelevantNovember 16, 2010 at 2:31 pm
Great list. I’ve given my son a credit card to only be used for emergencies like car repairs, health bills. It has a small credit line so he can’t get too carried away also.
John RoweJuly 21, 2011 at 12:48 pm
There’s some news now that reports that a Federal Reserve study reveals a drop in college affiliated credit cards, or those credit cards that are issued through a college or university. We can thank the CardACT for this — but this means they are tightening the screws on cards being marketed to younger people. How does this bode for student cards?
KarenJanuary 11, 2012 at 7:34 pm
Should your college student own a credit card? I’m a parent so this is a good question. I remember when I first applied for and finally received my first credit card. It was a big deal and I felt that I just made a huge step. I believe that it can be helpful for someone to become exposed to using a credit card early — with caveats — depending on how ready for this exposure the individual is. With the appropriate guidance and guidelines, using the right kind of credit card can prove to be a helpful financial tool for a student.
Note that what distinguishes a student credit card from all other cards is that they offer lower interest rates and a lower spending limit than regular credit cards.
I am a firm believer that one’s money management habits are forged at a young age. I believe that anyone can learn how to manage money and understand credit cards while in college or shortly thereafter. But on the flip side, if you aren’t savvy with money or tend to hang out with friends who are spendthrifts, you may end up developing some bad habits. If you are a student and want credit, you need to understand what you are getting into. It would be great if all of us learned about money management and paid more attention to the basics of credit card use right when we start using credit cards.
JenFebruary 18, 2012 at 11:55 am
It’s particularly important that students realize that the no interest offers on these cards don’t go on forever. Once the teaser rate expires, the cards will get new rates that are set based on factors like your credit history. So while it’s great that these cards can be had even if your credit isn’t perfect (being a student is taken into consideration) and that they’re no annual fee cards, you have to make sure you know how to handle credit so you don’t get started on the road of carrying persistent debt like so many people have.
{ 18 comments… read them below or add one }
I have the Citi mtvU card and I can give a positive testimonial for it. It’s a great card catered to students. Wholly recommended!
Ahhhh, credit card for college kids, where it all begins 🙂
I just have one rule, and that is: Don’t get a credit card if you aren’t working.
Good luck kids! Better to spend now and overextend yourself earlier rather than when you’re making money in a full-time job. More painful later in life!
The Discover Student Card and Citi Forward are a close first and second. One thing I love about the Discover Student Card is that its reward system is the same as the More card, so you’re really getting all of the benefits of Discover’s premiere card, but obviously the APR is a bit higher because it is a student card.
@Eric and CreditShout
I’ve always had good experiences with Citi cards. For those less familiar with the Citi Forward card — it just got introduced in the past year, and aims to reward its cardholders for good behavior. So in that sense, this card is “unique”.
@Financial Samurai,
Yes, credit cards for kids is a debatable issue, but exposure to this has to start somewhere (at the very least, for the education). I received my first card in my early 20′s without the benefit of some “guidelines” except for one: do not use your card unless you know you can pay it off completely every month. And this piece of advice just stuck. I’ve never wavered because I always equated card use with cash use.
If you imagine more cash flowing out whenever you pull your card out at a cash register (than if you simply used cash), maybe it will deter you from using the credit card as often.
@SVB – Yep, I agree. I don’t necessarily think it’s bad to expose young folks to the allure of credit cards early. It really is better to mess around and have some slip ups before things get out of hand.
When I say “don’t get until you work”, I mean working during college. As soon as you start working during college, you recognize the value of money more (b/c $8-9/hr is kinda painful), and you won’t go overboard in CC spending.
I have the Discover card, not sure if it’s the student one or the “Open Road” one – but I use it strictly for gas/auto repairs. I’m able to pay it off in full each month, and it’s really worked out great when my transmission went out last month and not everything was covered by insurance 🙁
Regardless, I’d recommend that one for anyone looking for an introductory credit card to start to build their line of credit.
Just my two cents: If you get a CC, use it for one or two routine purchases and that’s IT. i.e. gas, groceries, etc.
@ Financial Samurai
You make a great point in that some well meaning parents simply pay off all of their kids’ credit card bills which although it is beneficial in that it helps them build credit history, it is disastrous in teaching the kids how to manage credit responsibly.
Citi was my first credit card as a college student, and I had no complaints. Fortunately, I didn’t get into debt problems, and it allowed me to build by credit history early on. Financial Samurai’s suggestion to only get a card if you have a job is a great tip. It was my job in college that kept my debt under control.
Credit cards for students have been used by lots of young adults to build credit score. However they should learn how to manage their accounts and should limit their use of it to avoid big debt problems in the future.
New laws affecting the credit card industry my soon make getting a credit card as a student a thing of the past. New laws will require the student to have a job or a parents co-signature to apply for a credit card. The best option will be going with a pre-paid credit card such as the Mango MasterCard that has no fees with a monthly deposit. These types of cards will allow students to still have the benefits of a credit card for online purchases, gas, food, etc. while parents have the ability to re-load the card, watch their students spending and help teach the student money management and responsible spending without the huge interest fees and other drawbacks of a traditional credit card for students.
Only get a credit card if you have money to pay for it later or if you’re parent are financially well. But it is more advisable to get a credit card if you are already working and can pay for your debts responsibly.
Student cards can be dangerous in the wrong hands but I started out with them right after I got my first job. I made some bad mistakes but learned things the hard way.
@Carrie. I agree with you 125%. Credit cards are dangerous and students often get into trouble with cards right away. The Credit card issuers know that they can feed on students and parents will often bail them out. And schools are in on this too, including Yale University, which accepts payments for allowing credit cards to come on campus. Is there any Credit Card 101 class being taught yet? I doubt it.
I remember my first credit card. My parents received the bill and paid it, but I also saw the bill. After seeing the bill a few months in, I cut back dramatically, because I started to realize I was overspending. I had already started to log my cash expenses the first month of school and started to log credit card expenses as well.
Great list. I’ve given my son a credit card to only be used for emergencies like car repairs, health bills. It has a small credit line so he can’t get too carried away also.
There’s some news now that reports that a Federal Reserve study reveals a drop in college affiliated credit cards, or those credit cards that are issued through a college or university. We can thank the CardACT for this — but this means they are tightening the screws on cards being marketed to younger people. How does this bode for student cards?
Should your college student own a credit card? I’m a parent so this is a good question. I remember when I first applied for and finally received my first credit card. It was a big deal and I felt that I just made a huge step. I believe that it can be helpful for someone to become exposed to using a credit card early — with caveats — depending on how ready for this exposure the individual is. With the appropriate guidance and guidelines, using the right kind of credit card can prove to be a helpful financial tool for a student.
Note that what distinguishes a student credit card from all other cards is that they offer lower interest rates and a lower spending limit than regular credit cards.
I am a firm believer that one’s money management habits are forged at a young age. I believe that anyone can learn how to manage money and understand credit cards while in college or shortly thereafter. But on the flip side, if you aren’t savvy with money or tend to hang out with friends who are spendthrifts, you may end up developing some bad habits. If you are a student and want credit, you need to understand what you are getting into. It would be great if all of us learned about money management and paid more attention to the basics of credit card use right when we start using credit cards.
It’s particularly important that students realize that the no interest offers on these cards don’t go on forever. Once the teaser rate expires, the cards will get new rates that are set based on factors like your credit history. So while it’s great that these cards can be had even if your credit isn’t perfect (being a student is taken into consideration) and that they’re no annual fee cards, you have to make sure you know how to handle credit so you don’t get started on the road of carrying persistent debt like so many people have.