For students looking to build credit and earn rewards, student Mastercards with cashback options are an excellent choice. These credit cards not only help in managing everyday expenses but also offer attractive cashback rewards on purchases. This article explores the benefits of student Mastercards with cashback rewards, highlights some of the best options available, and provides tips on how to choose and use these cards effectively.
Benefits of Student Credit Cards with Cashback Rewards
Financial Education and Responsibility
Credit Building: Using a student Mastercard responsibly helps in building a strong credit history, essential for future financial endeavors.
Budget Management: Cashback rewards can incentivize mindful spending and budgeting.
Cashback Rewards
Earning on Purchases: Students can earn cashback on everyday purchases like groceries, dining, and online shopping.
Special Bonuses: Some cards offer higher cashback rates in specific categories, maximizing rewards on frequent expenses.
Added Perks
Introductory Offers: Many student Mastercards come with sign-up bonuses or introductory 0% APR periods.
Security Features: Enhanced security features such as fraud protection and zero-liability policies offer peace of mind.
Top Student Credit Cards with Cashback Rewards
Discover it® Student Cash Back
Overview: Discover it® Student Cash Back is a popular choice among students, offering robust cashback rewards and unique benefits.
Key Features:
5% Cashback: Earn 5% cashback on rotating categories each quarter (up to the quarterly maximum) when you activate, and 1% on all other purchases.
Good Grade Rewards: Receive a $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years.
Introductory Offer: Unlimited Cashback Match – Discover will match all the cashback you've earned at the end of your first year.
Chase Freedom® Student Credit Card
Overview: The Chase Freedom® Student Credit Card offers straightforward cashback rewards and valuable benefits for students.
Key Features:
1% Cashback: Earn unlimited 1% cashback on all purchases.
Good Standing Rewards: Get a $20 Good Standing Reward after each account anniversary for up to 5 years.
Sign-Up Bonus: Earn $50 after your first purchase made within the first 3 months from account opening.
Capital One SavorOne Student Cash Rewards Credit Card
Overview: Capital One SavorOne Student Cash Rewards offers excellent cashback rates on dining and entertainment.
Key Features:
3% Cashback: Earn 3% cashback on dining, entertainment, popular streaming services, and grocery stores (excluding superstores like Walmart® and Target®), 1% on all other purchases.
No Annual Fee: Enjoy all these benefits with no annual fee.
Introductory Offer: Get a one-time $100 cash bonus after spending $100 in the first three months.
Bank of America® Cash Rewards Credit Card for Students
Overview: The Bank of America® Cash Rewards Credit Card for Students offers customizable cashback rewards.
Key Features:
3% Cashback: Choose a category to earn 3% cashback (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings).
2% Cashback: Earn 2% cashback at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter).
1% Cashback: Unlimited 1% cashback on all other purchases.
Citi Rewards+® Student Card
Overview: The Citi Rewards+® Student Card offers a unique rewards structure and valuable perks for students.
Key Features:
2X Points: Earn 2X ThankYou® Points at supermarkets and gas stations (on the first $6,000 per year) and 1X points on all other purchases.
Round-Up Feature: Every purchase rounds up to the nearest 10 points.
Sign-Up Bonus: Earn 2,500 ThankYou® Points after spending $500 in purchases within the first 3 months of account opening.
Tips for Choosing and Using Student Credit Cards with Cashback Rewards
Evaluate Spending Habits
Identify Categories: Choose a card that offers the highest cashback in categories where you spend the most.
Rotating vs. Fixed Rewards: Decide between rotating category cards or fixed rate cashback cards based on your spending consistency.
Consider Fees and APR
No Annual Fee: Opt for cards with no annual fee to maximize your cashback rewards.
Introductory APR: Look for cards offering 0% introductory APR on purchases for a certain period, useful for larger expenses.
Monitor Rewards and Benefits
Activate Rewards: For rotating category cards, remember to activate the categories each quarter.
Redeem Regularly: Regularly redeem your cashback to make the most of your rewards.
Use Responsibly
Pay on Time: Always pay your balance on time to avoid late fees and interest charges.
Keep Balances Low: Maintain low balances to improve your credit utilization ratio and build a strong credit score.
Student Credit Cards with cashback rewards offer a great way for students to manage their finances while earning rewards on everyday purchases. By evaluating options like Discover it® Student Cash Back, Chase Freedom® Student Credit Card, Capital One SavorOne Student Cash Rewards, Bank of America® Cash Rewards Credit Card for Students, and Citi Rewards+® Student Card, students can find the card that best suits their needs. Remember to consider your spending habits, fees, and rewards structure when choosing a card, and use it responsibly to build a strong financial foundation. Start exploring these options today to take control of your finances and enjoy the benefits of cashback rewards.