What is it about student credit cards? Do credit card issuers think young people are stupid? Even the best student credit cards aren't very attractive, so you know the worst in the group have to be bad.
Some of these cards have high annual fees and high APRs. Those that have rewards programs tend to be overly complicated and not worth the effort. Rewards can also teach young people poor spending and credit habits.
As we said in our review of the Best Student Cards, young people would be well advised to ignore credit cards with a "student" label and instead apply for a card that works for their lifestyle.
1. Capital One Classic Platinum for Young Adults MasterCard
This card is almost identical to Capital One’s No Hassle Cash Rewards Card for Young Adults (which is also just like the No Hassle Cash Rewards for Limited Credit): same 19.8 APR, same 9-month zero percent intro period, same $39 annual fee. There’s just one big difference: this card doesn’t pay any rewards like the No Hassle card does.
So why would anyone choose this card over Capital One’s other student cards that pay rewards?
We’re not sure. It could be that people who apply for those cards but get turned down are offered this card instead. But the fact that this is a platinum card would normally imply that this card is tougher to get. We just don’t get it.
2. Citi mtvU Platinum Select Visa Card for College Students
This is a slightly less generous version of Citi’s Forward card (see #5), which is also aimed at college students. But it drops the best things about Forward and keeps some of the worst.
For example, you don't get thousands of bonus points for switching to paperless statements and minimal card usage during the first three months, like you can with Forward But you do earn greatly reduced rewards if you buy certain items at the wrong places (like Walmart or Target). Instead, you get a 10 percent discount by shopping on MTV’s website. Points can be redeemed for MTV experiences like free concert tickets.
Unless you’re a really big MTV fan, you’re better off with the Forward card, despite its drawbacks. Or shop around for a simpler card.
3. ZYNC Card from American Express
This is an old-fashioned charge card, which means you have to pay the balance in full every month. If you don’t, you'll be charged a late fee of $35 or 2.99 percent – that’s an APR of more than 36 percent. While many people need to learn to pay their balances in full every month, the $20 annual fee for that privilege isn't worth it.
The card comes with Amex Membership Rewards Express points. You can also buy optional “Packs” that pay you additional points based on your spending habits. So the annual fee may run you up to $45 a year.
You're better off trying to get an Amex Blue card, which has basically the same rewards and no annual fee, plus you have the option of carrying a balance if you want to.
4. Capital One MTV Visa Card
Capital One’s MTV-themed rewards card is better than Citi’s version (see #2). Although the APR (24.99 percent) is a lot higher, it’s slightly less complicated than Citi’s version and the rewards redemption gives you more options.
You earn five points for every dollar on entertainment, two points at restaurants, and one point everywhere else. You can also earn 25 bonus points each billing period by paying your bill on time (Citi’s card has a similar bonus). Points can be redeemed for MTV merchandise, cash, gift cards and travel.
I recommend Capital One’s Student Rewards Card over this one because it’s simpler to understand and the rewards are more clear-cut. That card has the same APR and no annual fee, but pays you back in cash.
5. Citi Forward Visa Card
The Forward card suffers from being overly complicated. Citi makes it even worse by presenting conflicting information on two different websites.
If you take the time to go through it, Citi’s Thank You Points program is pretty generous compared to the actual spending you have to do. You can also earn rewards for paying your bill on time, staying within your credit limit, switching to paperless statements, even points for getting good grades in school. But the two websites present conflicting information about how much rewards are worth, and the rewards differ depending on where you make purchases.
Unless you have lots of time to track and redeem your rewards points, you’re probably better off getting a simpler, no-frills rewards card.