Many students cards have integrated rewards and cash back programs. Students cards are designed for students that are aged under 21 years old and don’t have a stable income. The rewards you earn may be lesser than the regular credit cards but you still get to earn bonus while charging the card for your shopping expenses. To earn the rewards, you will usually have to charge the student cards on the bonus categories such as gas, grocery and dining out.
Normally, you get to earn a rewards of about 1% – 1.5% for every dollar spent although some cards may offer a higher rewards percentage. The credit card company may hold a promotion where you can enjoy some cash back when you achieve a certain level of GPA rating in your report card for example GPA 3.0. If you want to take advantage of the rewards program, you will have to use the card to buy a lot of things in the rotating categories. You are only going to earn a little bit if you seldom use the card. Signup bonus are usually not offered on students credit cards.
If you are interested in earning rewards on your card, make sure to read the terms of the rewards program to learn what types of expenses will qualify you to earn points and how can you redeem them. You should apply for a student rewards credit card that let you earn rewards in bonus categories that you often spend money on. For example, if you frequently dine out with friends, you should choose a card that let you earn rewards points or cash back when you dine out at the local restaurants.
Some credit cards do not require you to fulfill the rotating bonus categories. Instead, they offer a flat rate rewards program where you get to earn the same rewards percentage in every expenses that you spend on the card. This is even better since you don’t have to keep track of the rewards program. Most student credit cards don’t require assessment of your income. They allow cosigners since you are not yet living on a full income.
The most important thing is to be able to build a positive credit history with the credit card. Having a good credit history will be helpful when you graduate and want to rent an apartment. It will help you in getting approved for favorable rate on any loan that you want to apply in the near future. You also need a positive credit score to get a low premium for the insurance policy that you are applying. In case you don’t want to apply for a student card, you can also consider applying a secured card which will require you to put a collateral. Secured card does not have rewards or cash back program but they are useful for building a positive credit history.
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