Best Credit Cards for Students

The best credit cards for students aim to build financial responsibility, save for college, and encourage good grades. Several credit cards exist on the market that address one or more of these student related goals with different card programs.

Some credit cards claim to be 'student credit cards', but don't necessarily offer services that different from other credit cards issued by the same company. The following credit cards are some of the better credit cards for students because they can be utilized with a higher return on spending, or are more likely to meet one or more of the aforementioned financial goals, especially if they are used alongside a budget or financial plan.

1. Student Upside Visa

The Student Upside Visa is a prepaid credit card that parents can fund and track expenditures for. What makes this credit card one of the best for students is that it can be funded directly from a parent's checking account without transfer fees. The Indiana Department of Financial Institutions provides student credit card tips and techniques to make the most of cards like the Student Upside Visa, and to assist with a real life financial education for students.

2. Fidelity Investments 529 American Express  

The Fidelity Investments 529 Rewards American Express offers up to $1,500 per year to be contributed to a Fidelity 529 College plan.  No annual fee is required for this card and a 0% APR on purchases and balance transfers is allowed for the first 12 billing cycles. This is among the best credit cards for students because it is focused on an educational goal.

3. CITI MTV U Platinum Select Credit Card

This card actually rewards good grades by offering reward up to 4000 points per year in addition to a 10 percent discount on music purchases made at shop.mtv.com. GPA rewards are offered on a two semester basis  and are divided into four levels from 2.5-4.0; a semester GPA between 2.5-2.99 earns 250 points and a 4.0 GPA earns 2000.

4. Upromise World Mastercard

The Upromise World MasterCard is another college savings plan card, and is one of the best credit cards for students for this reason. The difference with this card however is the benefits can be as high as 25 percent if the Upromise shopping network is used. Money earned through the Upromise student rewards credit card is put directly into a 529 college savings plan, or used to pay down student loans or college expenses.

5. Discover Student Mix Tape Card

Similar to the Upromise World MasterCard, the Discover Student Mix Tape Credit Card offers high, up to 20 percent, cashback rewards when the discover shopping mall is used. This card does not fund a college savings plan however, and consequently requires a greater amount of financial responsibility to benefit from the rewards.

Additional credit cards that students may benefit from are the Capital One Student Rewards Card, and the AccountNow Prepaid credit card. Using credit cards for school expenses alone, then paying them off before the grace period ends is a good way to build credit and earn up to 25 percent back for college savings or school expenses in some cases.

The downside of even the best credit cards for students is they require a fair amount of financial discipline to maintain a manageable balance and good credit score. Credit card companies bank on card users not being financially responsible enough to pay their balance off every month, especially if the cards have no annual fee or service charges associated with regular use.

Sources:

1. http://bit.ly/bjrjGd (Credit Card Assist)
2. http://bit.ly/f8f9t (Creditcards.com)
3. http://bit.ly/9VCLNh (U Promise)
4. http://bit.ly/9cFsmM (529 Rewards card)