The Wells Fargo Cash Back College Card is a rewards card that is aimed squarely at the young student who’s looking to gain access to the financial system and establish credit. It has some appealing features that students might seriously consider. The introductory offer of low interest rates for six months and 3% cash back are just the tip of the iceberg.
Banks Do Like Students and Here Is Why
Wells Fargo, like all of the large retail banks, is continuously seeking to develop the youth of America into the next generation of lifelong consumer banking customers. This can be a good thing for students because you could do worse than to become a Wells Fargo customer.
This grooming of future customers one of the reasons that they are willing to offer a student credit card on reasonably generous terms. The benefit to students is to have access to banking facilities, a line of credit and the building of a solid credit history. That’s a pretty fair trade. Students get started on their inevitable financial lives and banks are able to build relationships that are potentially life-long.
The Wells Fargo Cash Back College Card By The Numbers
The Wells Fargo Cash Back College Card is an introductory card that serves its purpose well. Students who choose it can draw on the resources of one of the most stable banks, generous cash-back rewards, effective account management tools from Wells Fargo and the benefits of the Visa Card Network. While doing this, the Wells Fargo Cash Back College Card will be recording the on-time payments that will establish credit with the consumer credit bureaus.
The Wells Fargo Cash Back College Card has no annual fee, an introductory reduced APR for the first six months and cash back rewards that can be taken as a transfer to the student’s bank account.
- Introductory Rate 5.6% – 13.9% for 6 months
- Regular Rate 11.15% – 21.15% variable
- Transfer Fees @ 3%
- Cash Advances @ 23.99% variable and fees of 5%> $10 minimum
Rewards and Features
Credit cards often provide a wide range of benefits to keep customers happy and to compete with the other credit card providers, who do the same. There are many card providers and they all covet the customers of their competition, particularly those cardholders who have proven to be good customers, spend money on credit and never miss a payment.
Rewards are like a point system that accumulates as purchases are made. The Wells Fargo Cash Back College Card cardholder can then exchange them in return for travel, merchandise or, as in the case with this card, cash.
- Wells Fargo gives cash back at the rate of 3% when you shop at grocery and drugstores, and at gas stations for the six-month introductory period
- 1% thereafter
- Rewards do not expire unlike many other cards
- You may call in your points $25 at a time
- Choose to pay them into an account or a qualifying loan repayment
- You have the option to take rewards as a credit to your card account or as a check
Tools from Wells Fargo
Since Wells Fargo is a very large retail bank they can provide a host of tools that are as good as any in the industry.
- As with all Wells Fargo cards there is zero liability on fraudulent transactions
- Give your Wells Fargo bank account overdraft protection by joining them together, if you choose
- Information resources online to learn how to manage finances and build credit
- Online tools including smart-phone and tablet apps and account management through online banking
Wells Fargo’s online banking system is excellent, which includes all accounts in one place and online bill payment features that make it easy to manage household finances.
The Visa Credit Card Network provides other services. They are features you will find on any Visa Card so don’t think of them as a reason to apply for this card. However, they are useful to know about as you consider whether the Wells Fargo Cash Back College Card is the right choice for you.
- Visa payWave – no swipe secure payment
- Verified by Visa
- Rental car collision damage waiver
- Roadside recovery callout and other emergency and travel assistance services
Wells Fargo Wants Students But Should Students Want Them?
As a student who is just starting out financially, the Wells Fargo Cash Back College Card might be a very good option that you’d want to consider. If you are already a Wells Fargo customer it will work in conjunction with your other accounts and the online banking feature will be an asset for your money management. If you’re not already a customer, make sure you shop around to get the best deal.
The low interest rate of the six-month introductory period will go by very quickly. After that you have to pay interest on your outstanding balance of the full rate. That is more in line with the industry. As a rule of thumb the shorter your credit history, the higher your interest rate will be. As with any credit card you need to pay attention to your usage and be aware of your balance. The most prudent practice is always to pay your balance in full every month. You will get the benefits of the rewards without having to pay interest on a balance.
If you do use your credit line and maintain a balance each month it can have a positive impact on your credit score. There are two warnings to consider if you do. First it only works if it’s a low balance, relative to your credit limit. Second, you have to make all of your payments on time. Over the long term, finance companies want to see income and that means interest charges. They know how good customers behave through years of research. So it’s a balance between how much you spend and how you behave.
This is a good deal for students and the Wells Fargo Cash Back College Card has a reputation for helping to establishing credit. Customers who’ve rated Wells Fargo Cash Back College CardWells Fargo Cash Back College Card on Card Hub Card Hub, by and large, give it a very good rating. Out of five stars on that Website it has an average of 4.4. Of 163 reviews 135 give it four stars or better.
Living on credit cards is a last resort that should be avoided if at all possible. That is advice for everyone, not just students. However, students, like all young people, do have a need for access to financial support and to establish credit. Landlords use it to decide whether or not they will rent accommodation, banks use it to decide if they are going to lend to you and employers rely on it to choose whether or not to hire you.
If you are a student, just starting out and looking to establish credit then the Wells Fargo Cash Back College Card is a very good option to consider. Students should carefully consider their options when selecting a credit card but they may find that one of the best options that they actually qualify for is the Wells Fargo Cash Back College Card.