Student credit cards are typically reserved for college students who have little to no credit history and are looking to build their credit from scratch. These cards can be easier to get approved for, but they also usually have a lower credit limit.
Some student credit cards might be secured credit cards, meaning they may require a cash deposit as collateral. They also tend to have higher interest rates. After the intro period ends, your APR for purchases will be a variable rate of Retail cards generally result from a partnership between a bank and a big retailer, or are issued by big retailers themselves. Closed loop retail cards can be a good option to help build credit, as you may get approved for a card even with average credit. This is less applicable for open loop retail cards, as these may be subject to similar credit requirements as traditional credit cards.
But closed loop retail cards often also come with low credit limits and high interest rates — so if you get one, keep a close eye on your spending as it can affect your credit. You want to find one that fits with your lifestyle, values and financial picture. Choosing the right credit card and knowing the pros and cons can help set yourself up for success. Image: Man standing in front of a white wood wall scratches his head over the 9 different credit card types to consider.
What do these credit card types have in common, and what sets them apart? The law prohibits on-campus promotions, for example, and requires that applicants under age 21 prove their ability to pay the loan or at least the minimum payments.
Nevertheless, the fact is that young consumers are still a prime target for card issuers. As appealing as those offers may sound, be prepared to push back. It could end up being a very expensive piece of clothing. Do some shopping around. You also want to make sure that the places you shop accept your card network. If you occasionally travel to Europe, for example, you may have better luck with Mastercard or Visa, as fewer places there accept American Express, while Discover is virtually unknown.
Opening an account has long-term consequences—and not always for the better. When asking yourself what credit cards should I get? And once you do get a card, manage it like your future depends on how you behave.
Because it does. Credit Cards. Balance Transfer Cards. Building Credit. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.
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There are three general types of credit cards:. Cards that help you improve your credit when it's limited or damaged. Cards that save you money on interest. The best card for you is one with features designed to meet your specific needs.
If you don't travel much, for example, then the best travel card in the world isn't going to do you a lot of good. Student credit cards , unsecured cards meant for college students who are new to credit, are easier to qualify for than other types of credit cards. Your deposit is returned to you when the account is upgraded or closed in good standing.
A balance transfer offer could help you pay off a high-interest debt interest-free. Keep in mind that these offers may be harder to find if you have average or poor credit. A rewards credit card is a good match for you if you pay off your balance in full every month and never incur interest.
These cards typically have higher APRs, but offer larger sign-up bonuses and give you points, miles or cash back on every dollar you spend. As you go through the top picks, consider these questions.
Will this card help me build my credit? Look for a card that reports your credit card payments to the three major credit bureaus.
Many secured cards don't do this. How much does it cost to open an account, including the annual fee? Credit card calculators. Cashback reward calculator Balance transfer calculator Credit card repayment calculator All 3 calculators.
Compare Credit Cards. In this article. Why take out a credit card? What is an interest-free credit card? What is a credit card for bad credit? What is a cash back credit card? What is a prepaid card? What are 'low-rate' credit cards? Use our handy calculators to see how to manage your credit card costs. Cashback reward calculator Balance transfer calculator Credit card repayment calculator.
All 3 calculators. Compare credit cards. See the latest credit card deals on Which? Continue reading.
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