In a recent analysis and survey conducted by the Creditcards.com, it is found out that student credit cards are more expensive compared to other cards.
Bank-issued student cards have a higher APR up to 24.18 per cent. Aside from interest, penalties and other fees such as late payment can go as high as $39.
According to credit card expert Beverly Harzog, the reason for higher interest rates is due to the limited access of students to credit. Because most of these students don’t have a part-time job, using the credit card and not paying for balances is quite common.
Meanwhile, it is also found out in the survey that even though these cards are expensive, they have a generous reward system. For instance, the Bank of America student cards can have a signup bonus worth $50 more than bonuses offered last 2018.
There are selected student credit cards with a $200 sign-up bonus, unlimited cardholder’s reward earnings and more.
Out of all the student cards surveyed, the Bank of America student card stands out because of its flexibility in terms of budgeting money and choosing rewards categories. In addition, cardholders can also earn up to 3 per cent cashback for every use of the card.
In terms of the credit limit, most student credit cards only issue only small limits. Students are lucky to be approved with a $1,000 limit. However, the average credit card limit range from $600 to $807.
According to the InCharge Institute of America, average credit card debt for Americans is $4,717 for ages 18 to 65. This is a huge amount and also adds up to the monthly expenses, aside from the student loan.
Discover It Student Cash Back Credit Card is the top credit card for students, according to Creditcards.com.