Low Apr Student Credit Cards
Question : Hi, I am a college student and am looking for low apr student credit cards. I plan to run a small balance and the lower the interest rate, the better it would be for me. Can you suggest a suitable card with a low apr? thanks
Answer : I get lots of similar emails like the one above. Students who have just got into college looking for low apr student credit cards. Firstly, I think getting a student credit card is a good thing as it helps you to establish a credit history. But be careful with your spending, pay your bills on time and try not to carry a balance.
But I digress. Back to the question. Unlike regular consumer credit cards which have a wide range of apr (ranges from prime rate plus 2.99% to prime rate + 14.99%) depending on your credit profile, almost all student credit cards have a standard industry average rate. And that rate is prime rate plus 9.99%. There are no fixed rate student credit cards or those with rates as low as prime rate plus 2.99%. The reason is because most college students do not have a credit history. But unlike those with bad credit, or adults with no credit, college student credit cards do not charge any annual fee or one-time application fee that is so common in sub-prime cards. Credit card issuers are counting on you to become good customers in future. Hence the apr is very standard.
But there is one student credit card that has a slightly lower apr than the standard prime rate plus 9.99%. That card is the Discover Student Credit Card. The apr on this card is prime rate plus 8.99%, a full percentage point lower than almost all other student credit cards. One plus point is that Discover cards give cardholders 25 days of grace period versus only 20 days for most credit cards. The thing to take note is that Discover uses the 2-cycle average daily balance method to calculate your monthly balance.
Aside from having a lower apr than all other student credit card, Discover Student credit cards allow you to earn 5% rebates on certain merchant partners. You can earn unlimited cash rebates and can increase the value of your cash rebates by exchanging them for gift certificates of merchant partners (up to double the value). See our review of the Discover Student Credit Card to find out more about these partner merchants.
So there you go. Just one student credit card out of the hundreds out there with a slightly lower apr.
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