Credit Card Project By: Cortez Bates & Destiny Clark

Best Credit Card Companies for Students to Establish Credit
Journey Student Rewards from Capital One

No Annual Fee

Flexible Due Date

1.25% Reward Rate

Interest

Pay off purchases within 25 days of the billing cycle to avoid paying interest.

Penalties

Paying late won't raise your APR

No overlimit fee

$35 fee on late payments

Discover It For Students

Good Grades Rewards: $20 cash back each school year your GPA is 3.0 or higher for up to the next 5 years.

Earn 5% cash back in new bonus categories like gas, restaurants, Amazon and etc

Fees

No Annual Fees

Interest

Pay off purchases within 25 days of the billing cycle to avoid paying interest.

No less that $50 interest charge.

APR

13.24% - 22.24% after 1st 6 months.

Penalties

Paying late won't raise your APR

No late fee for your first late payment, up to $35 after.

Returned payment up to $35

No overlimit fee

Best Credit Card Companies for People Who Have Bad Credit Trying to Rebuild
Capital One Secured MasterCard

Credit Building Benefits with Responsible Use

Minimum Security Deposit of $200 in Credit

No Annual Fee

APR

24.99%

Interest

Pay off purchases within 25 days of the billing cycle to avoid paying interest.

Penalties

Late fee up to $35

Credit Cards that Offer Rewards
Best for Everyday Spending
Blue Cash Preferred Card from American Express

Get Cash Back Instead of Rewards- 6% U.S. supermarkets up to $6,000 per year in purchases (then 1%); 3% U.S. gas stations & select U.S. dept. stores; 1% other purchases.

Fees

$75 Annual Fee

APR

13.24% to 23.24% after 1st 12 months

Penalties

29.49% penalty when late on payments or made a payment that was later returned.

Late Payment of fee up to $37

No Over the Limit Fee

Best for Travel Rewards
Chase Sapphire Preferred

Points are worth 25% more if you redeem for travel booked through Chase’s tool. Your effective rewards rate, then, can be as high as 1.25% base and 2.5% for travel and restaurant spending.

Fees

No annual fee for the 1st year, then $95 afterwards

Interest

No minimum interest charge.

Pay off purchases within 21 days of the billing cycle to avoid paying interest.

APR

16.24% to 23.24%

Penalties

Late payment up to $15 if the balance is less than $100 or $27 if the balance is $100 to less than $250 or $37 if the balance is $250 or more.

Return payment up to $37

Scenarios

Scenario 1

Between Journey Student and Discover it for Students, Julie would be paying for the same amount of time, but would be paying less interest for Discover It for Students so that would be the better choice.

Scenario 2

Between Capital One Venture and Barclaycard Arrival Plus, Fernando would be paying for the same amount of time, but would be paying less interest for Capital One Venture so that would be the better choice.
The End

Sources

  • https://www.nerdwallet.com/student-credit-cards
  • http://www.creditcards.com/bad-credit.php
  • https://www.nerdwallet.com/blog/top-credit-cards/nerdwallets-best-rewards-credit-cards/
  • https://www.discover.com/credit-cards/compare/index.html?srcCode=RJQX
  • https://www.discovercard.com/application/displayLanding?pageFileId=double-listingsite_student&sc=RJRY&cmpgnid=ls-dca-cj-nerd-student-it-rjry-dtop&aid=12460405&pid=3842381&sid=2feacfdbfada3afd
  • http://www.bankrate.com/calculators/managing-debt/minimum-payment-calculator.aspx
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