Since I have no credit history, I'm not able to get approved for the fancy travel rewards credit cards out there. My objective for maybe the next year or two is to try to build up a credit history, so that eventually I will be able to get approved for those lucrative travel rewards credit cards that offer high sign-up bonuses, lucrative category bonuses, and valuable travel rewards points for everyday spending. From the FAQ page of the site creditcardjoint.com, I have several ideas for building a credit history. Also, it's not like I only have to choose one. For example, if I want to be an authorized user on someone else's card and have my own student credit card, then that can work.
Ideas for Building a Credit History
That being said, in some cases, store credit cards can get pretty interesting. I love the story from Miles Abound here about his Banana Republic credit card, and how he earned $4,400 worth of Banana Republic merchandise from 2 amazing deals he saw in the past. Basically, he found out about a 2-month-long promotion where he could earn 200 bonus points (each point is worth about 1 cent) for each transaction with his card, so he paid his electric bill one cent at a time. Later, he saw a 10-day promotion where he could earn $10 of bonus rewards per transaction of $75 or more. So, he did a ton of transactions of $75 each on Google Wallet.
Which Student Credit Card?
On creditcards.com, they have a nice list of different student credit cards here. Fortunately, they all seem to have no annual fee. When it says "Credit Needed" on each card's profile, I'm not entirely sure what that means. Since it says "Fair", "Average", or "Good" for pretty much all of them, does it mean I already need a credit history?
Ideas for Building a Credit History
- Store credit card
That being said, in some cases, store credit cards can get pretty interesting. I love the story from Miles Abound here about his Banana Republic credit card, and how he earned $4,400 worth of Banana Republic merchandise from 2 amazing deals he saw in the past. Basically, he found out about a 2-month-long promotion where he could earn 200 bonus points (each point is worth about 1 cent) for each transaction with his card, so he paid his electric bill one cent at a time. Later, he saw a 10-day promotion where he could earn $10 of bonus rewards per transaction of $75 or more. So, he did a ton of transactions of $75 each on Google Wallet.
- Secured credit card
- Authorized or Joint User
- Student credit card
Which Student Credit Card?
On creditcards.com, they have a nice list of different student credit cards here. Fortunately, they all seem to have no annual fee. When it says "Credit Needed" on each card's profile, I'm not entirely sure what that means. Since it says "Fair", "Average", or "Good" for pretty much all of them, does it mean I already need a credit history?
Discover It
I've gotten numerous offers in the mail for this, and Mom and Dad didn't let me sign up for the card in the past. However, they seem to have changed their mind, under the condition that I don't spend too much on it. Basically, the card might have a small $20 sign-up bonus, and it offers mostly 1% cash back on spending. What intrigues me about this card is the rotating 5% categories for up to $1,500 in spending every quarter. Sometimes the categories are useless (for example Q1 of 2014: restaurants and movies), but other times there's some really good categories (such as Q4 of 2013: online shopping). So, these rotating categories are hit or miss in any given quarter, so I guess it's both a pro and a con. What I really like about this card is the access to the Shop Discover cash back portal, where I can get cash back for online shopping. The Shop Discover portal is particularly useful for "shopping" on Staples.com.
I've gotten numerous offers in the mail for this, and Mom and Dad didn't let me sign up for the card in the past. However, they seem to have changed their mind, under the condition that I don't spend too much on it. Basically, the card might have a small $20 sign-up bonus, and it offers mostly 1% cash back on spending. What intrigues me about this card is the rotating 5% categories for up to $1,500 in spending every quarter. Sometimes the categories are useless (for example Q1 of 2014: restaurants and movies), but other times there's some really good categories (such as Q4 of 2013: online shopping). So, these rotating categories are hit or miss in any given quarter, so I guess it's both a pro and a con. What I really like about this card is the access to the Shop Discover cash back portal, where I can get cash back for online shopping. The Shop Discover portal is particularly useful for "shopping" on Staples.com.
Citi Thank You Preferred for College Students
As always, it's a weak sign-up bonus of 2,500 points. However, the rewards are pretty good. It earns 1 Thank You point per dollar spent for regular spending. After accumulating a good credit history in the future, I can get a Thank You Premier card, and then try to redeem the points earned from this Thank You Preferred card for 1.25 cents toward airfare. The one aspect of the card I don't like is that the 2X dining and entertainment category bonuses seem to be useless (i.e., there are no manufactured spending opportunities in those categories).
As always, it's a weak sign-up bonus of 2,500 points. However, the rewards are pretty good. It earns 1 Thank You point per dollar spent for regular spending. After accumulating a good credit history in the future, I can get a Thank You Premier card, and then try to redeem the points earned from this Thank You Preferred card for 1.25 cents toward airfare. The one aspect of the card I don't like is that the 2X dining and entertainment category bonuses seem to be useless (i.e., there are no manufactured spending opportunities in those categories).
Capital One Journey Student Rewards
This essentially earns 1.25% cash back, has no sign-up bonus, and has no annual fee. I like the simplicity of it, and the fact that the rewards for non-bonused spending are flexible (seeing that it's cash back) and pretty good for a student card. However, I don't like the lack of a sign-up bonus and category bonuses.
This essentially earns 1.25% cash back, has no sign-up bonus, and has no annual fee. I like the simplicity of it, and the fact that the rewards for non-bonused spending are flexible (seeing that it's cash back) and pretty good for a student card. However, I don't like the lack of a sign-up bonus and category bonuses.
Citi Dividend for College Students
This card seems to be similar to the Discover It. Like the Discover It, the card has rotating 5% categories, and 1% cash back on other spending. The differences are that the Citi Dividend has $300 annual cap on cash back from bonus categories, and it's a Visa rather than a Discover (meaning it's accepted in more places). A $300 annual cap pretty much means $6,000 in annual bonus spending, which is the same as for the Discover It and the Chase Freedom. This potentially is better than the way the Discover It and the Chase Freedom does their rotating categories because it might be possible to spend all $6,000 in one bonus category. In Q1 of 2014, drugstores was a bonus category for the Citi Dividend. For Q2 of 2014, the bonus category will be Home Depot and home furnishing stores. I hope that includes Lowe's, because my idea would be to buy gas station gift cards at Lowe's and then use that to buy gas that I need anyway.
This card seems to be similar to the Discover It. Like the Discover It, the card has rotating 5% categories, and 1% cash back on other spending. The differences are that the Citi Dividend has $300 annual cap on cash back from bonus categories, and it's a Visa rather than a Discover (meaning it's accepted in more places). A $300 annual cap pretty much means $6,000 in annual bonus spending, which is the same as for the Discover It and the Chase Freedom. This potentially is better than the way the Discover It and the Chase Freedom does their rotating categories because it might be possible to spend all $6,000 in one bonus category. In Q1 of 2014, drugstores was a bonus category for the Citi Dividend. For Q2 of 2014, the bonus category will be Home Depot and home furnishing stores. I hope that includes Lowe's, because my idea would be to buy gas station gift cards at Lowe's and then use that to buy gas that I need anyway.
Bank Americard Visa for Students
It has a $100 sign-up bonus, and it earns 1% cash back for regular spending. What really makes this one interesting is the 2% at grocery stores and 3% on gas for $1,500 in combined grocery and gas purchases each quarter. While it's not as good as 5%, those are two of the best bonus categories out there.
It has a $100 sign-up bonus, and it earns 1% cash back for regular spending. What really makes this one interesting is the 2% at grocery stores and 3% on gas for $1,500 in combined grocery and gas purchases each quarter. While it's not as good as 5%, those are two of the best bonus categories out there.
Upromise World Mastercard
This card has a $50 sign-up bonus, and it earns 1% cash back for regular spending. The bonus categories are movie theaters (2%), Exxon and Mobil (3%), and dining (4%). On the surface, these bonus categories seem to be useless. However, I've heard a report somewhere of VRs at a Mobil gas station. When I went to a Mobil gas station, though, I didn't see any. What this card can really be useful for is access to the Upromise shopping portal, so that I can earn cash back for online shopping.
This card has a $50 sign-up bonus, and it earns 1% cash back for regular spending. The bonus categories are movie theaters (2%), Exxon and Mobil (3%), and dining (4%). On the surface, these bonus categories seem to be useless. However, I've heard a report somewhere of VRs at a Mobil gas station. When I went to a Mobil gas station, though, I didn't see any. What this card can really be useful for is access to the Upromise shopping portal, so that I can earn cash back for online shopping.
My Decision
I don't know what I will actually end up doing, but I'm definitely excited to get my first credit card and finally get started with this miles and points endeavor.
I don't know what I will actually end up doing, but I'm definitely excited to get my first credit card and finally get started with this miles and points endeavor.