Embarking on globetrotting adventures while pursuing higher education is a dream for many. In today’s financial landscape, student credit cards have emerged as an indispensable tool for young explorers. These cards not only facilitate smoother transactions across borders but also shower users with an array of travel perks and rewards. From earning air miles to enjoying complimentary airport lounge access, the right student credit card can significantly enhance your travel experience. This blog will navigate through the best student credit cards offering exceptional travel perks, ensuring your journey is as rewarding as your destination.
Key Takeaways
Introduction to student credit cards
Student credit cards are financial tools designed to meet the specific needs of college students. They often serve as a stepping stone for young adults to build credit and manage finances independently. These cards typically come with lower credit limits and more forgiving eligibility criteria compared to standard credit cards, making them accessible to students who may not have a robust credit history. Understanding the structure and benefits of student credit cards can help users maximize their advantages while minimizing potential risks. Also read Credit Card Security
Advantages of using student credit cards
The primary benefit of student credit cards lies in their ability to help users establish a credit history early. Timely payments and responsible card usage can lead to a good credit score, which is crucial for future financial endeavors like loan approvals or apartment rentals. Additionally, many student credit cards offer rewards programs tailored to student life, with perks on groceries, dining, and, notably, travel.
These rewards can translate into significant savings and opportunities for students who love to explore. Finally, student credit cards often come with educational resources to help users learn about credit and personal finance management, an invaluable benefit for those just starting on their financial journey.
Factors to Consider When Choosing a Student Credit Card
Eligibility requirements
Before applying for a student credit card, it’s essential to understand the eligibility requirements. Most cards require applicants to be enrolled in an accredited university or college and at least 18 years old. Some may require proof of income or a co-signer if the applicant has limited or no credit history. Checking these requirements ahead of time can save students from unnecessary credit inquiries that might impact their credit score.
Annual fees
Some student credit cards come with no annual fee, making them cost-effective options for students on a budget. However, cards offering more generous rewards might charge an annual fee. When deciding, weigh the benefits of the rewards against the cost of the fee to ensure the card is a financially sound choice.
Interest rates
Interest rates, or annual percentage rates (APRs), are critical to consider, especially for students who may carry a balance on their card. While the goal should always be to pay off the balance each month to avoid interest, understanding the APR can help students prepare for any situation where carrying a balance is unavoidable.
Rewards programs
The rewards program is often a significant factor for students interested in travel perks. Look for cards that offer points or cash back on categories where students are likely to spend, such as travel, dining, and textbooks. Additionally, some cards offer bonuses like free checked bags, priority boarding on flights, or no foreign transaction fees, which can be incredibly beneficial for students studying abroad or traveling frequently. Choosing a card with a rewards program aligned with one’s lifestyle and spending habits can maximize the benefits received. Also read Maximize Business Credit Card Rewards on US Costs.
The Best Student Credit Cards for Travel Junkies
Journey Student Rewards from Capital One
Overview of card features
The Journey Student Rewards from Capital One still caters to student travelers but offers slightly modified rewards and additional features:
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- Rewards:
- Base rate: 1.25% cash back on all purchases (increased from 1% in late 2023). On-time payments no longer provide an additional bonus.
- Bonus category: 5% cash back on hotels and rental cars booked through Capital One Travel (unchanged).
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- No annual fee: This benefit remains, keeping the card accessible for students.
- New features:
- Automatic credit line increases: Cardholders are now automatically considered for credit line increases after just 6 months of account opening.
- Enhanced mobile app: The Capital One app allows for easy account management, bill pay, and rewards tracking.
Travel perks and rewards
For travel enthusiasts, the card offers no foreign transaction fees on purchases made outside the U.S., making it ideal for students studying abroad or vacationing. Additionally, cardholders can access a higher credit line after making the first five monthly payments on time.
Eligibility requirements
Applicants should have fair to good credit to qualify. Capital One also considers applicants who have a limited credit history, making it a suitable choice for many students.
Bank of America® Travel Rewards Credit Card for Students
Overview of card features
This card offers students a chance to earn unlimited 1.5 points for every dollar spent on all purchases, with no expiration on points. There’s no annual fee and no foreign transaction fee, adding to its appeal for travelers.
Travel perks and rewards
Cardholders benefit from flexible redemption options, including statement credits for flights, hotels, vacation packages, cruises, rental cars, or baggage fees. Moreover, spending $1,000 in purchases within the first 90 days can earn students 25,000 online bonus points, which can be redeemed for a $250 statement credit toward travel purchases.
Eligibility requirements
Students with limited credit histories are encouraged to apply. A good academic performance can bolster an application, as Bank of America takes a holistic view of the applicant’s financial responsibility.
Discover It® Student Cash Back
Overview of card features
Discover it® Student Cash Back stands out with its rotating 5% cash back rewards on everyday purchases at different places each quarter, like Amazon.com, grocery stores, restaurants, gas stations, and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, unlimited 1% cash back on all other purchases. It features a $0 annual fee and a cashback match at the end of your first year.
Travel perks and rewards
Although not exclusively a travel card, it offers significant ancillary benefits for travelers, such as no foreign transaction fees and a reward on purchases that can indirectly fund travel expenses. The rotating categories can cover travel expenses in quarters focused on gas stations and more.
Eligibility requirements
There’s a good chance of approval for students with little credit history. The card is also forgiving on the first late payment, not charging a late fee.
Wells Fargo Propel American Express® Card
Overview of card features
- Rewards: Earned 3 points per dollar spent on gas, streaming services, restaurants, travel, and phone plans, and 1 point per dollar on all other purchases.
- No Annual Fee: Enjoyed the benefits of the card without an annual fee.
- Welcome Bonus: New cardholders received 30,000 points after spending $3,000 in purchases within the first 3 months of account opening.
- Travel and Purchase Protection: Included benefits like trip cancellation/interruption insurance, auto rental collision damage waiver, and purchase protection.
- Mobile App: Managed account and redeemed rewards easily through the Wells Fargo mobile app.
Eligibility:
- Available to applicants with good or excellent credit scores.
Current Alternatives:
Wells Fargo offers several other credit cards that may be suitable for individuals who were interested in the Propel card. These include:
- Wells Fargo Autograph℠ Card: Earns 3 points per dollar on restaurants, travel, gas, transit, popular streaming services, and phone plans, and 1 point per dollar on all other purchases. Has a $95 annual fee.
- Wells Fargo Active Cash® Card: Earns an unlimited 2% cash back on all purchases. Has a $0 annual fee.
NOTE: As this card might not strictly be a “student credit card” and might have different availability or terms now, verify the current offers from Wells Fargo.
Tips for Maximizing Rewards with Student Credit Cards
1. Understanding the rewards program
Familiarize yourself with the details of your credit card’s reward program. Knowing how and when to earn rewards can help you plan your spending to maximize benefits.
2. Utilizing bonus categories
For cards with rotating bonus categories, plan your purchases to align with these periods. This strategy can significantly increase the rewards you earn from your spending.
3. Managing monthly spending
Use your credit card for regular purchases to accumulate rewards, but ensure that this spending fits within your budget. Overspending to earn rewards can result in interest charges that negate the benefits.
4. Paying off balances on time
Always pay your statement balance in full and on time to avoid interest charges and late fees. Timely payments also help build a good credit history, which is beneficial for your financial future.
Conclusion
In conclusion, selecting the right student credit card for travel can significantly enhance your journey, providing not only valuable rewards but also essential protection on your adventures. It’s crucial to weigh the benefits of each card against your travel habits and financial situation. Whether it’s earning miles for flights, receiving cash back on purchases, or enjoying the peace of mind that comes with travel insurance, the perfect travel companion might just be a credit card away. Remember to swipe responsibly and let your credit card work for you as you explore the world.
