Expenses like books, personal items, and many more burden most students, and it is not easy for many of them to afford the things they need. Even with the available loans, some students will still struggle to afford the essential items. It would be ideal for a student to get a flexible and easily affordable credit card for shopping and other expenses.
The bank or America cash rewards credit card for students has many perks so that students can enjoy shopping on and off-campus without a hassle. With this card, you can shop, dine, travel, and get cash back on the category of your choosing.
A Review Of The Bank Of America Cash Rewards Credit Card For Students
Made specifically for students, this card makes it easy for students to make purchases on and off-campus. It has details that benefit students and makes it easy for them to pay the loan back. The following are the features of the credit card:
1. Cash Back
It offers cashback in any category you choose like dining, online shopping, travel, drug stores, home improvements stores and, many others. When you use this card, you will earn 3% cashback whether you are shopping online or off-campus. If you shop for groceries and in wholesale clubs, you will get 2% cashback. All other purchases that are not in the categories above will earn you 1% cashback.
This card will make you earn 3% and 2% cashback on the first $2500 when you combine grocery, wholesale clubs, and then you can earn 1% after that. You can change your choice of category when making purchases in the future, but for this, you must go online and use the mobile banking app. This financial company allows you to make changes every month, or you can also let it remain the same if you are comfortable with the categories you have.
2. Annual Fees
The student will not need to pay an annual fee with this credit card because the fee is $0. This will make it easy for you to repay the loan and help build your credit. You can choose how you earn your rewards and enjoy paying back without an additional yearly fee.
3. Mobile Banking App
If you have this credit card, it is easy to manage your finances and your bank accounts. It has a mobile banking app that you can access anytime you like so that every student can take control of their finances. The app will allow you to make payments, check available credit, transfer funds, and also check on your credit score. You can check your balances and due dates quickly with the app, and if you do not prefer the app, you can choose email or text alerts.
Your FICO score will be updated every month for free, and through the mobile banking app, you can find out your score. Online banking makes it easy for you to find out what factors affect your credit score and other information you may need. It is easy for you to keep a healthy credit when you know what you are doing wrong because you can change your spending habits as soon as possible.
4. Cash Bonus Reward
Apart from the cashback you will get when using this card, and you can also get a cash reward bonus. After making purchases worth at least $1000 within the first 90 days of opening the account, you will get a $200 cash reward bonus. This is the sign-up bonus for first-time credit card users.
5. FICO Score Program
The FICO score program is a feature that is accessible through mobile banking or online. This is a registered trademark that is for personal use and benefits cardholders with a consumer credit card. The cardholder can check out how their credit score is affected by the activities on their credit card. This will help you to manage your accounts and cut down on expenses if you need to. You need to ensure that you still build your credit so that you present yourself as responsible to future lenders. The program is available on android and iPhone devices and needs data connections to work.
6. Security Features
Fraud is on the rise, and many people fall prey to fraudsters who use their cards and make unauthorized and expensive purchases. If this company detects fraudulent activity and any abnormal patterns with your credit card, they will let you know. You will also get a $0 liability guarantee for fraudulent actions.
Contactless chip technology has been incorporated into the credit card so that you can make purchases fast in many locations. In places where there is a contactless symbol, you can easily tap and pay. You can also be returned checks and other overdrafts when you link with your bank of America checking account. This will help to prevent declined purchases.
To increase security and minimize the use of paper consumption, you can request paperless statements. You will receive your statements through online banking. If you add the credit card to your bank or America account, you can use an app and enjoy using a digital wallet for your payments and other services.
The bank of America cash rewards credit card for students has an introductory 0% for 15 billing cycles. The APR will apply to purchases and balance transfers that you make within the first 60 days after opening the account. After this, the APR variable is 13.99% to 23.99% according to your creditworthiness. It would help if you kept up the good credit to get a better rate from lenders.
Benefits Of Having An American Cash Rewards Credit Card
A credit card is meant to help you make purchases so that you can easily afford the things you want. When it comes to students, it is crucial to have a credit card because apart from making items affordable, you will also get many other benefits.
The following are some benefits you will experience with the bank of America cash rewards credit card for students:
Better Money Habits
If you want to learn better money habits, a credit card is the way to go. With this card, you can easily monitor your bank accounts and manage your finances. The online banking platform and the mobile banking app will help you keep an eye on your money. You can make any changes you want to your finances, and payments have been made easier. With this credit card, you will learn how to handle your credit responsibility early to get better benefits in the future.
When you have control and easy access to your finances, you will know when you need to cut down on your spending. This way, you can build your credit score early and get better loans and interests when you are done with school. Early management of finances will make it easy for you to get better deals with financial institutions in the future.
Bonuses And Rewards
The several cashback rewards and bonuses that this credit card offers make it easy for students to afford many items that they may need for school or personally. Even with student loans, sometimes it can be a challenge for students when they need to buy stuff. Most credit cards have high interest, annual fees, and a small percentage when it comes to rewards. This card makes it easy for the student to pay back the loan and help maintain or build their credit.
Drawbacks Of The Bank Of America Cash Rewards Credit Card For Students
Even with the several benefits of this credit card, you need to know that it has its drawback. Some of the major cons associated with this credit card are:
High potential interest rates
Although there is a 0% interest rate for the first 15 billing cycles with this credit card, the rates after the first 15 billing cycles will range from 13.99 to 23.99 according to your creditworthiness. This means that if your credit score is terrible, you will pay more, and it might end up getting more expensive for you in the long run. To avoid this, you need to ensure that you keep up with your payments. Pay on or before the due date so that you can get a better rate.
Quarterly Limit On Bonuses
The reward categories on this credit card have a quarterly spending limit of $2500. This is the cashback reward when you shop in the category you have chosen and the bonus reward from wholesale clubs and grocery stores.
Apart from paying interests, it would be best to keep in mind that you will be charged a 3% balance transfer fee with a minimum of 10%. Some of the services like mobile app and online banking also need data to work, which will also cost you. If you are dealing with foreign currency, it also attracts a fee of 3% of the amount on each transaction, whichever is greater. This is for students who might be traveling outside the United States.
Apart from the charges that you will incur when using the credit card, it would help if you also remembered that there are penalties that you might get. If you pay after the due date, you will be charged a penalty fee of $40, and there is also a returned payment fee of up to $29.
When To Apply For A Bank Of America Cash Rewards Credit Card For Students?
Getting approved for a credit card is exciting for many people and especially students. It is an excellent feeling to afford any items you want and pays for them in simple, flexible installments. However, you need to ensure that it is the right time to apply for a credit card. The following are the ways to know when you can apply for the bank of America cash rewards credit card for students:
- When you have a steady income – It is vital that you pay your balance in full every month. This way, you can be sure that you will not pay fines and late fees. When you make your payments in time, you will build your credit score and get more credit limits with this and other credit card companies.
- If it is for emergencies – While in college, you may have emergency expenses that you may not afford right away. You can apply for a credit card meant for emergencies because this will be easy for you to pay back. Ensure that you are disciplined with your spending so that you only make purchases that you need.
- When not in debt – Adding a credit card to an already existing debt is one of the biggest mistakes you can make. If you engage in bad spending habits, you will have long-term consequences because your credit history will be available for financial institutions.
- To build your credit – Starting to build your credit from an early age gives you an advantage as you continue taking control of your finances. Apply for a credit card when you want to use it to build your credit so that you can access better services with other banks and financial institutions.
When applying for the bank of America cash rewards credit card for students or any other credit card, you need first to check your ability to pay back the loan. If you do not make payments regularly and in time, you will negatively affect your credit score. With a bad credit score, you will not get financial institutions to trust you, and you will attract higher interests.
Although having a credit card will help create a good credit history, you need to know that you may afford the monthly installments on credit cards, even with student loans. Monitor your finances so that you can notice when you need to make changes to your spending. This is because bad credit will reflect on your records, and you will have a hard time getting lenders to believe you are responsible. When you manage your finances properly, you can get more credit and better interest rates from lenders.