Student rewards credit cards are less common than other types of cards, mainly because many credit card vendors don’t specifically target college-age students when it comes to credit card offers. Yes, there are some, and as such, those cater to students seeking to establish a credit history. In most cases, credit lines for student rewards credit cards are minimal, but such cards often offer rewards that not only teach fiscal responsibility and positive habits when it comes to balances and payments, but may help with college expenses to boot.
Types of Student Rewards Credit Cards
A number of major banks throughout the United States offer student rewards credit cards. Wells Fargo is one, with the Wells Fargo Cash Back College card. Other popular student rewards credit cards include but are not limited to:
• Discover it for Students
• Citi Forward Card for College Students
• Citi Dividend Card for College Students
A number of benefits can be associated with student rewards credit cards depending on the issuer. Many of these cards are geared to younger target audiences with a fair to average to good credit history. For example, the Discover it for Students offers $5 cash back on movie and restaurant purchases up to $1,500, and 1% cashback on other purchases.
The Citi Forward Card for College Students offers a 2,500 point bonus as a thank you for signing up and spending your first $500 within three months, and then afterward, one thank you point for every dollar you spend.
The Wells Fargo Cash Back College Card is designed as a first card for students offering cashback at 3% for purchases made at drug stores, gas stations, and grocery stores, and 1% cashback on purchases after the initial six-month introductory timeframe.
Rewards can be cashed out in various increments, depending on the card issuer. For example, the Wells Fargo Cash Back College Card enables students to start redeeming points in $25 increments, and those points can be used to make a student loan repayment or placed into an account opened by the student, or as credit to a credit card account. Of course, students can also opt for the cash back choice.
The focus and benefits of student rewards credit cards are to help first-time card holders not only establish a credit history, but to learn fiscal responsibility while at the same time benefiting from options that are of particular interest to students.
Annual Percentage Rates and Fees
Annual percentage rates and fees for student rewards credit cards will differ, depending on the card issuer. For example, Discover it for students offers a 0% introductory APR on all purchases for the first six billing cycles, and then the APR ranges between 12.99% and 21.99%.
The Wells Fargo Cash Back College card offers an introductory rate for six months that ranges between 5.6% and 13.9%, after which the interest rate will rise to between 11.15% and 21.15%.
As with annual percentage rates and fees, annual fees for student rewards credit cards depends on the issuer. For example, the Discover cards for students do not charge an annual fee, nor does the City Forward Card for College Students or the Citi Dividend Card for College Students.