Not all credit cards are alike, and some are better than others for certain periods of life. When you're young, it pays to have a credit card that takes that into account.
Fortunately, there are several credit cards designed specifically for young people still in school. Here are three pretty good ones.
Discover It Chrome for Students
The Discover It Chrome for Students has some forgiving features that might come in handy. There is no annual fee, no fee for going over your limit, no foreign transaction fee, and no late fee on first late payment. In fact, a late payment won't raise your interest rate, as it would with most other cards.
The rewards are pretty good too. You'll get 2% cash back at restaurants and gas stations, capped at $1,000 spending on the combined categories. You'll get 1% back on all other purchases.
Currently, Discover will match all the cash back received in the first year for new cardholders. It will also reward students for hitting the books, adding $20 cash back each school year your GPA is at least 3.0.
Freeze-It is a nice security feature, allowing you to prevent new purchases, cash advances, and balance transfers on misplaced cards instantly, using a mobile app or PC.
Wells Fargo Cash Back College Visa
The Wells Fargo Cash Back College Visa Card is another credit card that can benefit a young person with limited credit history. You can build your credit as you use the card – as long as you use it responsibly. There is no annual fee.
You can also rack up a few rewards along the way, earning 3% cash rewards on gasoline, groceries, and drug store purchases the first six months you have the card and 1% cash back on virtually all other net purchases.
Cash rewards can be redeemed in $25 increments and you can set it up so that the money is deposited into a Wells Fargo savings account. You can also apply the money to a qualifying Wells Fargo credit account or receive a check.
Journey Student Rewards card from Capital One
The Journey Student Rewards card from Capital One is another good choice for someone starting out to build a positive credit profile. You get 1% Cash back on everything you buy and there's no annual fee, so you are already ahead of the game.
Beyond that, Journey will send you text alerts so you know when your payment is due. Make the payment on time and Journey will give you a 25% bonus on the cash you've earned.