Studying abroad is an exciting, life-changing experience that opens up a world of opportunities for college students. These students face a unique set of financial challenges, from managing their money to dealing with foreign transaction fees and exchange rates. That's where the best credit cards for college students studying abroad come in! In this guide, we'll help you navigate the complex world of international finance and equip you with the top credit cards designed to make your time abroad as seamless and budget-friendly as possible. Let's dive in!
Best Credit Cards For College Students Studying Abroad Table of Contents
Why Credit Cards Are Essential for College Students Studying Abroad
Why Credit Cards Are Essential for College Students Studying Abroad
- Financial security: A credit card offers added protection against fraud and unauthorized transactions, ensuring that your money is safe while you're away from home.
- Building credit: Responsible use of a credit card can help you establish a solid credit history, which will benefit you in the long run when applying for loans, mortgages, or even jobs.
- Travel perks: Many credit cards offer rewards, discounts, and other valuable incentives that can enhance your travel experience and save you money.
- Convenience: A credit card eliminates the need to carry large amounts of cash and allows you to make purchases quickly and easily, regardless of the local currency.
What to Look for in a Credit Card for Studying Abroad
- No foreign transaction fees: While many credit cards charge a foreign transaction fee of 2-3% on purchases made in a different currency, the best cards for students studying abroad won't charge these fees.
- Competitive rewards: Look for cards that offer rewards such as cashback, points, or miles on everyday purchases as well as travel-related expenses like flights and accommodations.
- Low or no annual fee: As a college student, keeping costs down is essential. Opt for cards with low or no annual fees to minimize your financial burden.
- Acceptance: Make sure your credit card is widely accepted in the country you're studying in. For instance, Visa and Mastercard are generally more widely accepted than American Express.
- Travel protections: Some credit cards offer valuable travel benefits like trip cancellation insurance, lost luggage reimbursement, and 24/7 assistance when you're abroad.
Top Credit Cards for College Students Studying Abroad
- Bank of America Travel Rewards Credit Card for Students: This card offers 1.5 points per $1 spent on all purchases, with no annual fee or foreign transaction fees. Plus, new cardholders can earn a 25,000-point bonus after spending $1,000 within the first 90 days.
- Discover it Student Chrome: This card features 2% cash back on gas station and restaurant purchases (up to $1,000 in combined purchases each quarter), with no annual fee or foreign transaction fees. Discover also offers a $20 statement credit each year for good grades.
- Capital One QuicksilverOne Cash Rewards Credit Card: This card offers 1.5% cashback on all purchases, with no foreign transaction fees and a low $39 annual fee. It's a great option for students with limited or no credit history.
- Chase Sapphire Preferred Card: Although this card comes with a $95 annual fee, it offers top-tier travel rewards, including 2x points on travel and dining and a generous sign-up bonus of 60,000 points after spending $4,000 within the first three months. There are no foreign transaction fees, making it an excellent choice for students studying abroad.
Best Credit Cards For College Students Studying Abroad Example:
Imagine you're a college student studying abroad in Spain for a semester. You decide to go with the Bank of America Travel Rewards Credit Card for Students. You spend $1,000 on flights, accommodations, and other travel-related expenses within the first 90 days, earning a 25,000-point bonus. In addition, you put all of your day-to-day expenses on your credit card, racking up points at a rate of 1.5 points per $1 spent, knowing that there won't be any foreign transaction fees.
At the end of your semester abroad, you've earned enough points to redeem for a $400 statement credit, which you use to pay for your flight back home. Not only did your credit card save you money on your return journey, but it also provided protection against fraud and helped you build credit during your time overseas.
There you have it—the best credit cards for college students studying abroad. With these options in hand, you can make the most of your international experience without breaking the bank. As you embark on this exciting journey, remember that Flik Eco has your back with top-notch personal finance tips and advice for millennials. Don't forget to share this valuable guide with fellow students planning their study abroad adventures, and check out our other resources for expert insights on everything from banking to investing and beyond.
