The Discover Student Classic credit card is ideal for students attempting to build credit history, perhaps for the first time. The card offers a cash back awards program that is focused on purchases often made by students. It is a credit card that is designed for a target audience, and with the right choices it can serve them well.
Because this card is designed for students, it's not necessary to have an excellent credit history in order to apply; in fact, Discover expects most applicants to have a very short record. However, those with some credit history, and especially good credit, will do well because they will receive the lower end of the somewhat high rates that come with this card. Because of the fact that many applicants are students who are just starting out, rates on this card can run somewhat higher than on typical credit cards. The card does have the benefit of a 0% APR for the first six months, but after those six months the APR will increase to somewhere around 15%, with the rate on cash advances even higher. However, paying the balance down each month will teach a new cardholder good habits as well as prevent the accumulation of high finance charges. This card has no annual fee.
Through the rewards program, the Discover Student Classic offers cash back on a percentage rate. The first $1,500 in purchases earns .25% back in cash rewards; the second $1,500 in purchases earns .50%. After the first $3,000, each purchase earns 1% in cash back. Purchases made at participating merchants, including some warehouse clubs, discount stores, and their affiliates, will earn .25% of the purchase in cash back. There is no limit to the amount of cash back rewards that can be earned, and rewards are redeemable in $20 increments. You may redeem for the exact amount of cash, or there are opportunities to increase or even double the amount of reward dollars you receive, by opting for a gift certificate from a Discover company partner.
It's important to note that this card operates on a Two-Cycle Average Daily Balance method for calculating finance charges, which results in higher finance charges than cards that operate on a single cycle.
The Discover Student Classic does open the door for those without much credit history who wish to begin building a credit report, and learning good habits of credit card management. The card makes it easy on new cardholders by offering no annual fee, a 25 day grace period, and a 0% introductory rate. However, as with all credit cards, balance management is extremely important. Students who will be carrying a larger balance for a longer period of time might want to consider a lower interest rate card, but those who simply need the card for back-up reasons and want to take advantage of the cash back awards will be well served by the Discover Student Classic.
|
