Reward cards probably don’t make sense for college students. This is largely because the point systems on many credit card rewards programs has an expiration or else the amount of points necessary is typically generated by frequent or large purchases that students are not likely to make on a limited student income.
The minimum payment due is about 2 to 4 percent of the total balance. Think about this: even with a 10 percent interest rate, a comparatively favorable APR, your minimum monthly payment wouldn’t cover all the interest charged on that balance.
What do credit cards really cost? University of Minnesota
When you are scraping by with waiting tables, using money from your parents or having to work as a free intern, your spending power is limited but your need for credit is necessary. If you are in the market for a credit card, carefully evaluating the wide range of credit products may give you some added benefits for your hard earned dollars. Or your parents’ hard earned dollars.
Discover offers several cash back credit cards for students. Depending on the card, a cardholder can redeem up to 20% of the amount charged on the account. Also, many Discover cards are personalized: the cardholder can choose what image is on the card or the color of the card, and the cardholder’s initials can be imprinted on the front. The downside is this cashback must be spent at participating retailers and websites.
Citi features a wider range of benefits. Although the offers are mostly low interest credit cards for students, the cardholder automatically participates in Citi’s ThankYou network—even earning rewards points for a good GPA.
For college students, rewards cards have a limited value. College students looking for a credit card with a rewards program should be careful to review the terms prior to selecting. Choosing a card with points that do not expire and bonus rewards that can be earned with the typical purchases a student makes, is likely to be the best value.
