5 Ways to Maximize Student Credit Card Rewards

Written By LaTisha Styles | Budgeting & Saving | 0 Comments

Want to make the most of your student credit card? Here’s how to rack up rewards without breaking the bank:

Pick the right card for your spending habits
Use your card for everyday purchases and bills
Time your spending to hit bonus categories
Split costs with friends and get paid back
Redeem rewards smartly and regularly

Remember: Always pay your full balance each month to avoid interest charges that can wipe out your rewards.

Quick tips: • Compare welcome bonuses and ongoing rewards • Set up autopay for monthly bills • Use shopping portals for extra points • Track your rewards and use them before they expire • Keep your credit utilization under 30%

Pick the Best Card for You

Want to get the most out of your student credit card? Here’s how to pick one that fits your spending and goals like a glove.

Compare Welcome Bonuses and Rewards

Student credit cards can offer some sweet deals. Let’s break it down:

Discover it® Student Cash Back: They’ll DOUBLE all your cash back after your first year. Ka-ching!
Capital One Quicksilver Student Cash Rewards: Spend $100 in 3 months, get $50. Easy money.

But don’t get starry-eyed over welcome bonuses. Look at the long-term rewards too.

Find Cards That Match Your Spending

Your perfect card? It’s the one that rewards what you already buy. Check these out:

Everyday spenders: Capital One Quicksilver Student Cash Rewards gives 1.5% cash back on everything. Simple.
Food and fun lovers: Capital One Savor Student Cash Rewards offers 3% back on dining, entertainment, and streaming.
Flexible folks: Bank of America® Customized Cash Rewards for Students lets you pick your 3% category. Nice.

"The Discover it® Student Cash Back card is best for students who want to earn cash-back rewards and don’t mind manually activating their rewards each quarter." – Forbes Advisor

Some cards, like Discover it® Student Cash Back, offer up to 5% in rotating categories. But you’ve got to activate them. Ask yourself: Are you up for that?

When picking a card, think about:

Rewards rate
How much work you want to put in
Credit-building potential (look for cards that report to all three major bureaus)
Fees (aim for no annual fee)

Make Daily Purchases Count

Want to boost your student credit card rewards? It’s easier than you think. Just use your card for everyday expenses and watch the points or cash back pile up. Here’s how to make your daily spending work for you:

Use Your Card for School Expenses

College isn’t cheap, but your credit card can help. Here’s how to turn those school costs into rewards:

Textbooks and Supplies: Buy your course materials with your rewards card. Got a Discover it® Student Cash Back card? You could earn 5% cash back on Amazon purchases (including textbooks) during certain quarters, up to the quarterly maximum when activated.

Campus Dining: Many student cards give extra rewards for restaurant purchases, including campus eateries. The Discover it® Student Chrome card, for example, gives you 2% cash back at restaurants on up to $1,000 in combined purchases each quarter.

Tuition Payments: Some schools let you pay tuition with a credit card. But watch out for processing fees. Ohio State University charges a 2.85% fee for credit card payments. If your rewards rate is lower than the fee, skip it.

"Think creatively about the expenses your student will incur during college and how to make the most of them by using the right credit cards." – 10xTravel Team, 10xTravel

Set Up Monthly Bills

Put your regular payments on autopilot and rack up rewards without thinking about it. Here’s how:

Subscriptions: Use your rewards card for streaming services, gym memberships, and other subscriptions. These small, regular charges can add up to big rewards over time.

Utilities: Many utility companies take credit card payments. Check if your internet, cell phone, and electricity providers allow this without extra fees.

Insurance: Pay your car or renters insurance with your credit card for an easy rewards boost.

One Reddit user shared their success:

"I got a Wells Fargo card and for every dollar spent, 2.2% is kicked back (minus gambling and advanced transfers). Math says for my monthly expenses of $4,161 (excl those that credit card can’t pay) x 2.2% x 12 months means a cool $1,098 a year in rewards."

Here’s the golden rule: PAY YOUR BALANCE IN FULL EACH MONTH. Set up autopay for your credit card bill to avoid interest charges that could wipe out your rewards.

Get More From Bonus Categories

Want to supercharge your student credit card rewards? It’s not just about swiping for everyday stuff. It’s about smart timing and milking those bonus categories for all they’re worth. Let’s break it down.

Time Your Purchases

Credit card companies love to shake things up with rotating bonus categories. Here’s how to play their game:

Know your card’s schedule: Cards like Chase Freedom Flex® and Discover it® Cash Back offer 5% cash back on up to $1,500 in combined purchases each quarter. That’s $75 in your pocket every three months!

Plan big buys: Need textbooks or a new laptop? Check if any upcoming bonus categories match. If Amazon’s on deck next quarter, hold off on that textbook splurge.

Don’t snooze on activation: Set a reminder to activate those juicy bonus categories each quarter. No activation = no extra rewards.

"The world of credit card rewards may seem overwhelming at first, but there are some simple strategies to keep the process fun instead of stressful." – Anonymous Author, Credit Card Expert

Try this: Make a quick spreadsheet to track your cards and bonus categories. Use colors:

Green: Use now
Yellow: Use temporarily (note end date)
Black: Skip it (you’ve got better options)

This way, you’ll know which card to grab without breaking a sweat.

Shop Through Reward Sites

Want to stack even more rewards? Use your card issuer’s shopping portal. It’s like a secret passage to extra points. Here’s the drill:

1. Log in to your card account: Most big issuers have these portals. Chase calls theirs "Shop Through Chase."

2. Compare rates: Different stores offer different bonus points. Take a quick peek before you buy.

3. Click through the portal: Always start your online shopping spree from the portal. It’s your ticket to those bonus points.

4. Double dip: You’ll get the portal bonus AND your card’s regular rewards. If your card gives 2% cash back and the portal offers another 2% at a store, boom – you’ve just scored 4%!

"These web-based portals and deals allow you to ‘stack’ savings or points on top of your card’s normal rewards rate, with just a few easy clicks." – NerdWallet

Keep an eye out for those bonus points. They usually show up in your account 3-5 business days after you buy. Make sure you’re getting all the rewards you’ve earned, you savvy shopper, you.

Want to boost your credit card rewards? Try splitting expenses with friends. It’s not just fair – it’s smart. Here’s how to rack up points or cash back faster without spending more.

Pay for Group Items

Next time you’re out with friends or planning a group activity, offer to cover the bill. It’s a great way to earn rewards. Here’s the game plan:

Pick the right card: Use a card that gives you the best rewards for that purchase. Eating out? Grab a card like the Capital One Savor Student Cash Rewards. It gives you 3% cash back on dining.

Keep track: Write down who owes what. It keeps things clear and makes sure you’re not stuck with the whole bill.

Talk it out: Before you pay, make sure everyone’s on the same page about splitting costs. It saves you from awkward chats later.

"Nothing makes trips that are supposed to be fun more awkward than the fear of someone at the table paying more than they technically spent, then being afraid to bring it up." – Sarah Foster, Analyst and Economy Reporter at Bankrate

Split Bills Safely

You’ve paid for the group. Now, how do you get paid back? Here’s how to make it easy and safe:

Use apps: Bill-splitting apps like Splitwise, Settle Up, and Splid make dividing expenses a piece of cake. They track who owes what and can work with payment apps too.

Splitwise lets you make groups for different activities or living situations. It figures out everyone’s share and keeps track of who owes what.

Settle Up is like Splitwise, but it has free and paid versions. The paid version costs $3.49 a month or $18.99 a year. It gives you extras like offline mode and photo attachments.

Pay quick and safe: Once you know who owes what, use apps like Venmo, PayPal, or Zelle to transfer money fast and safely. These work well with many bill-splitting apps.

Set reminders: If your friends don’t pay right away, most bill-splitting apps let you send friendly reminders. It helps you avoid awkward "Hey, you still owe me" talks.

Use Your Rewards Well

Got a student credit card with rewards? Great! But knowing how to squeeze every drop of value from those points or cash back is even better. Let’s dive in.

Choose the Best Reward Option

Not all reward options are created equal. Here’s the lowdown:

Cash Back: It’s simple and sweet. Got a cash back card? Redeem those rewards ASAP. Why? Inflation’s always nibbling away at their value. If your card offers it, set up automatic redemptions.

Travel Rewards: These can be gold, especially for big trips. Take Chase Ultimate Rewards points – use them for international flights and you might get more than 2 cents per point. That’s double the usual cash back rate!

Gift Cards: Usually the worst deal. You’re typically looking at 1 cent per point or less. Steer clear unless you’ve got a specific purchase in mind.

"Maximize your card’s value by redeeming your rewards regularly." – Credit Card Expert

When to Use Points

Timing is key. Here’s how to nail it:

1. Before They Expire

Not all rewards last forever. Many airline miles and hotel points vanish after 12 to 24 months of no activity. Keep an eye on those expiration dates!

2. For High-Value Redemptions

Save those travel points for pricey trips. Using 50,000 points for a $1,000 international flight? That’s way better than blowing them on a $500 domestic hop.

3. During Special Promotions

Card issuers sometimes offer bonus value on redemptions. Chase, for example, occasionally boosts value when you redeem points through their travel portal.

4. Before Canceling Your Card

Planning to ditch your credit card? Use up those rewards first! Once you cancel, those points might go poof!

Aim to get at least 1 cent per point or mile when redeeming. Anything less? You’re leaving money on the table.

"No matter what anyone says, you can redeem your rewards any time you want." – Holly Johnson, Financial Expert and Writer

Things to Remember

Using your student credit card for rewards is great, but don’t forget to use it responsibly. Here’s what you need to know:

Keep Your Balance Low

Your credit card isn’t a free money machine. It’s a tool to build credit and earn rewards. Here’s why a low balance matters:

Your credit score takes a hit if you use too much of your available credit. Try to use less than 30% of your limit.
Interest can wipe out your rewards. If you’re paying 15% APR but only earning 2% cash back, you’re losing money.

How to keep that balance down:

1. Set up balance alerts on your card’s app or website.

You’ll know when you’re getting close to your spending limit.

2. Pay your full balance each month.

Can’t do that? Pay more than the minimum to cut down on interest.

3. Make a budget and stick to it.

Keep track of what you’re spending to avoid impulse buys that can jack up your balance.

"Credit cards can help you build a positive credit history, but if you don’t pay your bill on time, you’ll end up doing more harm than good." – NerdWallet

Watch Your Rewards

Keeping an eye on your rewards is just as important as watching your balance. Here’s how:

Check your rewards at least once a month. Make sure you’re earning what you expect.
Know if your rewards expire. Most don’t, but some do. For example, points on the Petco Pay Credit Card vanish after a year.
Use them before you lose them. If your rewards have an expiration date, don’t let them disappear.

Tips for tracking your rewards:

1. Use your card issuer’s rewards summary features.

American Express users can see their Membership Rewards points activity under the Rewards tab online.

2. Set up email alerts for big rewards milestones or upcoming expirations.

3. Try a rewards tracking app if you have multiple cards.

Conclusion

Smart use of student credit cards isn’t just about points – it’s about building good financial habits that’ll serve you well after graduation. Here’s a quick recap of our key strategies:

1. Pick the right card

Choose a card that matches how you spend. Take the Capital One SavorOne Student Cash Rewards Credit Card. It offers 8% cash back on entertainment through their portal, 3% on dining and groceries, and 1% on everything else. If you’re big on eating out or going to events, this could be a great fit.

2. Use it for everything (but pay it off)

Put all your eligible purchases on your rewards card. But here’s the catch: pay off the full balance each month. Dr. Preston Cherry from the CNBC Financial Advisor Council says:

"You want to try to avoid carrying a balance because it’s going to charge you interest, and interest is going to be a lot when you are new with your credit history."

3. Time your spending

Some cards, like the Discover it® Student Cash Back, offer 5% cash back in rotating categories (up to a quarterly max). Keep an eye on these and plan big purchases around them.

4. Stack your rewards

Use cash back apps like Dosh or Ibotta alongside your credit card. It’s like getting rewarded twice for the same purchase.

5. Cash in regularly

Don’t let those rewards sit there. Use them! Nathan Paulus, Head of Content Marketing at MoneyGeek, puts it well:

"Using credit cards wisely can turn everyday purchases into valuable perks – like cash back, travel points and exclusive offers – that lead to significant savings over time."

The key? Use your card responsibly. Emily Rabbideau, a University of Alabama senior, saw her credit score go up after just six months of smart credit card use. She said:

"I wanted to start building a credit score, and I figured I was spending all this money anyway so I might as well get some points and some cashback rewards on it."

Follow these tips, always pay your balance in full, and you’ll build good credit while earning rewards. As Tori Dunlap, founder of Her First $100K, says:

"You can use the cash back on everything from a spring break trip to a textbook you need for class."

Your student credit card can be a powerful tool. Use it smart, and you’ll set yourself up for financial success long after you’ve thrown that graduation cap.

FAQs

Which credit card company is best for students?

Picking the right credit card as a student isn’t one-size-fits-all. It depends on how you spend and what perks matter most to you. Here’s a quick rundown of some top picks for November 2024:

Discover it® Student Chrome

2% cash back at gas stations and restaurants (up to $1,000 quarterly)
1% on everything else
Bonus: Discover matches your first year’s cash back

Capital One Savor Student Cash Rewards

8% back on Capital One Entertainment buys
3% on dining, groceries, and popular streaming services
1% on other purchases
$50 bonus after spending $100 in 3 months

Bank of America® Travel Rewards for Students

1.5 points per $1 on all purchases
25,000 point bonus after spending $1,000 in 90 days

When you’re shopping for a student card, keep an eye out for:

Rewards that fit your spending
No annual fee
Tools to build credit (like free credit scores)
Intro APR deals

"A student credit card is a great first step toward establishing a good credit history, a cornerstone of your financial future." – NerdWallet