A credit card in the hands of a college student can be a dangerous thing, but unfortunately, college is also the time when students should start building their credit. Learning how to properly use a credit card and manage your own finances can be difficult in college, but implementing good habits early will get you on track for the rest of your adult life.
Here’s the quick rundown of important credit card tips that Money Crashers lists for college students:
- Find a basic credit card
- Always pay balances in full
- Avoid overspending
- Take advantage of parental guidance
- Keep credit cards in a safe, secure place
- Keep credit card and bank accounts at the same institution
- Use only one credit card
- Remember the CARD act of 2009
- Never use a co-signer
- Avoid rewards cards
- Don’t finance tuition with a credit card
- Look for cards without annual fees
- Consider secured credit cards
Here are a few of the best credit cards that Money Crashers recommends for college students:
- Citi Simplicity: with no annual fee, no late fees and no penalty interest rate, this card is perfect for students. With this card, you can also set your due date for payment at any time during the month.
- Bank of America Student Platinum Plus Visa: with thousands of locations around the country, students have access to branches no matter where they are. This card features no annual fee and comes with a student identity theft protection program.
- PenFed Visa Platinum Cash Rewards Card for Students:
PenFed is the Pentagon Federal credit union. While it was originally created to provide financial services to members of the U.S. armed forces and their families, today, anyone can join.
This card is only offered to students who attend an accredited institution, and whose parents are credit union members. The card has no annual fee and offers 5% cash back on gas and 1% cash back on all other purchases. Like Capital One’s products, there are no foreign transaction fees with any of PenFed’s cards.
Check out the other recommended cards along with more detailed credit card tips for students over at 10 Best Credit Cards for College Students.