NEW YORK, NY--(Marketwired - Jul 18, 2014) - Recent college graduates face a credit conundrum. They need to get a credit card to start building up their credit history, because that way they can get loans, rent properties, and get jobs. However, the fact that their only credit history is their student loans, if they have any, means that they do not have access to the best credit cards. Banks will not risk lending money to young students with nothing more than big loans to their name. As a result, students and recent graduates need to do a little research to discover which cards are the best for them to get started.
Creditnet, an online expert which researches credit cards and collects useful credit information for the public, has compiled a list of the three best credit cards for young graduates. Getting one of these cards is a useful way to start a favorable credit history:
First of all, the Discover it chrome has two different properties that make it great for college grads. It has no annual fee, and it has a zero introductory APR. That means that for either six or 14 months, there is no interest charged on the balance. One version of the card features six months of no interest on purchases and 18 months of no interest on balance transfers, while the other has 14 months on zero APR for both purchases and balance transfers. Creditnet recommends the second type, as college graduates are unlikely to need large balance transfers. The Discover it chrome also gives the holder access to Discover perks, such as free access to their credit score, a one-time waiver for late fees, and no penalty rates for missed payments. The rewards program yields two percent cash back on restaurants and gas stations up to $1000 per quarter, which is a good bonus.
The Citi Simplicity credit card is notable for the ease of use of the card. It is meant to be an introductory card, so the limit might be as low as $500, but the perks are perfect for first-time card holders. First of all, there is no annual fee and a zero APR on purchases and balance transfers for 18 months. On top of that, there is no penalty APR for missing payments and there are no late fees at all, unless a payment is returned. The Citi lets the holder pick their due date and do all their necessary banking online. As far as special Citi perks, the Simplicity also has access to the Citi Price Rewind, which refunds the price difference if a recently bought item drops in price by more than $25. The Simplicity has a great set of perks for college graduates just looking to get started with credit cards.
The Barclaycard Arrival is a travel-oriented card with a good rewards system on top of no annual fee. Travel purchases and restaurants earn 2 miles per dollar, which is comparable to a 2 percent cash back program. All other purchases earn 1 percent. The unique benefit of the Arrival is the "signup bonus" of 20,000 miles, or $200, after spending $1,000 in the first three months. This is essentially a free $200 for normal use of the card, and coupled with the lack of an annual fee, makes the Barclaycard Arrival attractive. For graduates who expect to do a lot of traveling, getting the Arrival will also open the door to the Arrival Plus, which is the next level up from the Arrival and has a much more robust rewards system for travel.
These three cards all have unique benefits, but the common thread is a lack of annual fees and a lenient late payment policy, as well as the opportunity to graduate to better cards. Building credit is an important part of personal finance, and with these cards, college graduates will be well-equipped to get better credit cards as well as better rates on car and home loans in the future.
Creditnet is an authority credit card comparison site that offers innovative comparison tools to help users find the best credit card for their needs. In addition, the Creditnet Credit Talk Forum is a community of over 100,000 members that discuss credit cards, credit, debt, and credit repair daily.