College graduation means an avalanche of credit card offers to accompany that newly minted degree.  Even college freshmen receive credit card offers in today’s competitive financial environment.  College students are cross-checked and triangulated by Big Data, who sell that info to thirsty credit card companies looking to replenish aging baby boomers with a fresh crop of decades-long fee generators.   Recall The Money Skinny™ mission is to save you time and money.  Before pouncing on a college credit card offer, review credit card options to make a best choice.

My Children’s College Credit Card Offer

My mailbox had college credit card offers for each of my three co-eds from one credit card company on the same day.  The large print says the annual fee is $0 for the first year.  The fine print says the annual “membership” fee is $195 after beginning in year two.  The tagline on the glossy brochure says “the journey never stops”.  Is that from Dr. Seuss’ Oh, The Places You’ll Go?

This particular credit card offer was for a rewards type of credit card.  Rewards credit cards have a the-more-you-spend-the-more-you-get philosophy.  Ideally, the reward system provides rewards greater than the annual fee costs.  Should you try to figure out the fuzzy math of the reward system?  Don’t you have studying to do?  Better to begin credit card usage with a simple, straight-forward product with less shiny expensive packaging.  Walk, then run.  This first credit card is going to be used by your college self, not your future high-flying Wall Street self.  Match the credit card to your current circumstance.  Credit cards are not aspirational products.

My College Credit Card

My first credit card was issued by the department store where I worked in college.  It had a low friction payment point.  I could pay the bill while on the job retail-associating.  I initiated opening the account.  They didn’t chase me on a non-stop journey.  We had a peaceful, almost non-existent relationship for many years.  The goal of a first credit card is to build a good credit history.

It’s not personal, it’s business

Another change in today’s environment is the personalization of products and services.  A credit card is a debt instrument.  Not membership in a club.  The issuing financial institution is not the consumer’s friend or journey guide.  C’mon now.  Select a credit card to minimize fees and find the best product to match your needs.  Do not base the decision on unsolicited glossy offerings.  A credit card is not personal, it’s business.  The Consumer Financial Protection Bureau Credit Card page answers general questions.  The Money Skinny™ article Just Say No to Credit Card Offers helps you resist credit card offers.

Credit Cards for College Students and First-time Users

These are The Money Skinny™ credit card recommendations for college students and first-time credit card users:

• No annual fee – ever.
• Low late payment penalty fees.
• Low Annual Percentage Rate (APR) financing fees.
• A straight-forward cash back on purchases reward system is a plus.

Review websites that evaluate and compare credit card products.  After two to three years of experience with an entry level credit card, if you’d like to transition into a more complicated rewards system credit card – knock yourself out.  If you incur late payment and penalty fees, adding an annual fee on top of those fees is doubling down on not-good.

• College students are prime targets for credit card companies.
• Begin credit card usage with a simple, straight-forward product.
• The Money Skinny™ recommends a college credit card with no annual fees, low late payment penalty and APR fees.  Cash back on purchases is a plus.
• The goal of a first credit card is to build a good credit history.