Credit cards are useful financial instruments when used properly credit cards for students. Entering adulthood, college and university students require learning on personal finance.
Some of such credit cards include the Bank of America Travel Rewards Credit Card for Students,
which has been constructed with the intention of meeting the demands of the young people even more so the travelers category.
This article also has a breakdown of the Bank of America Travel Rewards Credit Card for Students as well as the differences that exist between this card and other student credit cards.
We will also look at why it may be beneficial for students and how it may be accomplished correctly.
What is the purpose of the Bank of America Travel Rewards Credit Card for Students ?
There is another credit card here by known as the Bank of America Travel Rewards Credit Card for Students but is meant for students with features/travel rewards.
The advantage of the point as such is that it is not the kind of cash back or points for every Dollar spending as we get on many Credit cards but those points which student can use to book a flight ticket, hotel or car rental.
The option of having no annual fee, and the possibility of earning points as one makes a purchase were deemed appropriate to the student status, the need to build credit, and to travel at the same time.
About Bank of America Travel Rewards Credit Card for Students
No Annual Fee
First, it has one of the most attractive characteristics any bank card can have – no annual fee for use of Bank of America Travel Rewards Credit Card for students.
It is thus favored by students through they are such individuals who are financially unfixed most of the time. Excluding an annual fee.
make it easier for a user to establish a credit and earn a reward without struggling to accommodate a standing fee every year.
No Foreign Transaction Fee
International travelers will especially be relieved that there are no foreign transactions fees for students using this card.
Some issuers of credit cards also impose a foreign exchange charge on every transaction made in foreign currency,
at an average of 3%. This feature can useful while travelling over-seas for interning, educational purposes or even vacations for they will be able to find cheaper prices for their travels.
Introductory APR Offer
The card comes with a 0% interest rate on purchases for the first eighteen billing cycles. It can also be useful for students who must make a one-time big purchase in a semester, for example,
purchase Textbooks or stationery and then pay for them in installments without having to pay the interest charges.
Bank of America Preferred Rewards Program Enlightenment
Most students use Bank of America checking or saving accounts, and those make them to be in position to receive Preferred Rewards program through which the points one gets on purchases are hiked 25% to 75%.
This has the potential of getting the cardholders even more points faster and create the impression of getting even a better value out of the card.
Travel and Purchase Protection
Other protect offers that come with the Bank of America Travel Rewards Credit Card for Students include trip cancellation,
travel accidents, and lost luggage. Besides, the card comes with purchase security features including extended warranty and purchase protection against fraud.
Features that Students Should Consider when Deciding Whether to Apply for the Bank of America Travel Rewards Credit Card
1. Building Credit Responsibly
Building credit is one of the main reasons why students should apply for a credit card. Receiving a good credit history at an early age can give an opportunity to receive an attractive credit rate for purchases,
to rent a suitable apartment, or even get better job offers. Like most Bank of America cards, the Bank of America Travel Rewards Credit Card for Students is a credit-building card;
it also provides useful reporting for credit bureaus every month if the balance is paid in full.
2. Travelling as a student: how to accumulate travel rewards
Traveling is fun and when in a students’ calendar either for learning purposes or for leisure, travel rewards may be an advantage.
It sees the card’s 1.5 points per dollar on all purchases and 25,000-point welcome bonus as a means for students to earn points for possible future travels.
Students tend to travel in holidays, internships or even when studying in foreign universities, and therefore a travel rewards card will assist cover some of the costs to be incurred.
3. Professional Approaches of Handling Money with No Annual Fee
As noted earlier, the capability of this card not attracting annual fees make it possible for students to own this card. Unlike some other rewards cards where customers are required to pay the card issuer corresponding yearly fees,
students do not have to part with more cash for the simple reason of keeping this particular card active. It is especially advantageous for those with limited budget constraints
4. Card Offers No Foreign Transaction Fee for International Students
Especially for the students who are studying in the U.S or American students who go study in anation other than theirs they are normally charged a lot of money for the transaction they conduct abroad.
No such problem exists in the case of the Bank of America Travel Rewards Credit Card for Students which lets students make purchases in different foreign currencies without incurring any extra fees.
A Flexible Rewards System
In contrast to some credit cards which reward cardholders based on the spending category – for example, eating out or using gasoline – the Bank of America Travel Rewards Credit Card for Students.
rewards cardholders 1.5 points for every dollar spent anywhere at all. This makes it easier for students to be able to earn other rewards on normal purchase such as food, books and transportation.
How Students can get the Most of the Bank of America Travel Rewards Credit Card
1. Welcome Bonus: How to Use It Wisely
In order to get the maximum 25000 bonus points, the students should ensure that, they make purchases adding up to 1000 dollars within the initial ninety days of card membership.
This can be done by charging on essential needs like Books, stationery, fees etc or even rent depending with the circumstances.
However, it is advised that students should only make purchases he or she meeting list should be restricted to that which he or she can afford to pay back.
2. The Card should be used for every purchase.
This means a student can spend on anything and get great returns since the card rewards every purchase with 1.5 points per dollar.
So long as the balance can be paid in full each month, interest remains avoided as well as the accumulation of points for traveling.
3. Pay Off the Balance in Full
Credit cards can be a godsend, if only they are used appropriately. For this reason, to avoid incurring interest as well as having a bad credit score, students should endeavor to clear the balance as at the end of the month.
This will not only assist in the generation of a good credit report but also in confirming that the rewards they get as a result of the travelling, are worth the effort and not rolled out by the interest charged on the credit.
One should take advantage of the introductory APR In this case, understanding that the promotional rate only lasts for a short period should be enough to compel a one to avoid using the introductory APR.
4. The feature of possessing
introductory APR on purchases for the initial 18 billing cycles used by students is that they are given a chance to purchase a high ticket item like a laptop or school supplies,
and spread their payment over several months without adding interest to their bill. Still, there should be a strategy on repaying the outstanding balance before the low introductory rate offer expires, as the rates will rise afterwards.
5. Utilize Travel Protections
This type of students should know all the travel protection elements offered in the card including the trip cancellation / interruption insurance feature.
where one has to cancel or interrupt a trip due to some circumstances; travel accident; loss of baggage or delayed baggage insurance where there is some malfunction in the luggage during the trip.
All these can assist in reducing stress and /or traveling costs in the event of an occurrence of an incident.
Comparisons with Other Student Credit Cards
Even though, offering numerous benefits, it is important to compare this credit card to other student credit cards available on the market.
1. Discover it For Students: Cash Back
The Discover it Student Cash Back card allows for 5% cash back on categories that change from time to time including dining, gas stations, or supermarkets, and 1% on all other purchases. Also,
100% of cash back will be rewarded during the first year, and Discover will double the cash amount received. This card offer the highest cash back and though useful, may not be so ideal for students who need travel rewards most.
2. Capital One’s Journey Student Rewards
The Journey Student Rewards card gives back 1% cashback for every dollar spent and 1.25% when the bill has been
paid on time each month. It’s not as rich in travel rewards as its-similar Bank of America, but it can be a good choice for the student who just wants straight cash-back and credit-building basics.
3. Student Edition: The Citi Rewards Card
The Citi Rewards Student Card provides a 2 points per dollar for spending made at supermarkets and for fuel purchases up to $6,000 annually and 1 point per dollar on other purchases.
Moreover, the card can round up a purchase to the nearest 10 points, which will aid in increasing the rewards earned back. However, its rewards structure may not be so attractive for students, if they are more inclined to the traveling.
Disadvantages of Birmingham Utilities And Credit Card Payment Account Activation
The Bank of America Travel Rewards Credit Card for Students offers many benefits, but there are some drawbacks that everyone should know about
1. No Bonus Categories
Some of the student credit cards have flexible reward programs that may include featuring certain bonus in certain categories that may include dining or even gas.
However, for students who charge a lot, there is no reason to go with Bank of America Travel Rewards as it only gives 1.5 points per dollar for all purchases While the above mentioned card gives flat points of 1.5 dollars.
for all purchases, there are students who spend most of their money in given categories.
2. Travel Rewards Only
The card type primarily concerns travel rewards. Some consumers may lack time or interest in accumulating frequent flyer miles, earning cashback or points good for other kinds of spending would be best for this card.
3. High Standard APR
They are similar with the additional feature of its sign-up cash back rewards, and benefits like no foreign transaction fee and 0% introductory APR for purchases which is quite high afterward.
Although the students never pay any interest charges for any purchase in the first 18 billing cycles, after the grace period, the adjust and annual percentage rates for the new billing cycle come into force,
which may be moderate and high depending on one’s creditworthiness. Those with a balance from month to month may find that their interest charges add up to a lot, thereby erasing those rewards.
Is the Bank of America Travel Rewards Credit Card for Students for You?
1. Ideal for Frequent Travelers
Free for intermediate to advanced students Using this credit card can help you save money if you’re a student who enjoys travelling for the purpose of studying in other schools or interning in other cities or if you simply love to travel.
It would help students planning on extensive travels as they can get to earn travel rewards every time they make a purchase and no foreign transaction fees.
2. Suitable for students who clear their balance every month.
The Bank of America Travel Rewards Credit Card for Students is however most beneficial to students who always clear their bill before the end of the month.
Thus, enabling cardholders not pay an interest and actually benefit more from the travel rewards.
Those people who plan on keeping a balance should then look at the high standard APR and whether such rates can have on their financial situation.
3. Great for Building Credit
As a student, it is important to establish a good credit standing. This card is also linked to all major Credit Reporting Agencies; thus,
charge on it responsibly (meaning paying on time or never missing a payment and keeping credit utilization low) would lead to a good credit score.
To be in a position to distinguish yourself out there, building a strong credit score will benefit one when applying for car loans, mortgages among other need an apartment for instance.
4. Mentioned for Newbie Credit Card Consumers
This card has no annual fee to pay and has the simple concept, which makes it an ideal credit card for first-time credit card holder.
The rewards programme are relatively easy to understand, and, with the initial low interest-free period, one is given ample time to learn how to budget for the credit card expenses.
But, at the same time students should ensure that they don’t let spending spree get the best of them and without having to accrue high bills on the card.
How to apply for the Student Bank of America Travel Rewards Credit Card
1. Check Your Credit Score
This card has mainly been developed for students but having a good credit score or a co-signer anywhere will improve the chances of approval. Bank of America has usually pleasant requirements for Schlotzsky’s borrowers,
which means that students should have rather fair credit scores. This you can do either through some of the free services available in the internet, or with your own bank.
2. Gather Required Documents
You will need to supply some personal details when applying for the card such as, social security number, your work details and financial details.
It is also important that all the requirements that are needed through out the application process are availed before the start of the process.
3. Check the Bank of America website or get to any branch near you.
You can make an application for the card from the web site of the Bank of America or you can visit the branch.
The online application is much less formal and hardly takes anything more than five to ten minutes to fill out.
Check all the terms and conditions to ensure you are agreeing to before you apply.
4. Wait for Approval
Many application followed the submission of the application, Bank of America evaluates the credit position and worth of the loan applicant.
After successful acceptance of your application you will be issued a new credit card number and a new credit card will be delivered in a week,
preferably in 7- 10 weekdays from the date of approval. If you’re denied, Bank of America will send by mail an application advisors’ decision and the reason for the denial.
How to Make the Most of the Bank of America Travel Rewards Credit Card for Students
1. Set a Budget
Before you go for any purchase on credit card, have monthly spending cap on your credit limit basing on your income and expenses.
If it is your wish to know how much you will spend then this will assist you limit your own spending up to the extent that you lack the ability to meet costs.
Do not cross your head and do not spend on anything which you are not able to pay for in the final of the month when discharging the bill.
2. Monitor Your Spending
A major disadvantage of using a credit card is ignorance of spending. Develop a routine of keeping track of your account on the go,
via the Bank of America app for smart phones or through any statements you receive through the mail.
Documentation of the purchase will enable you to stick to the budgeted finances, apart from informing you of any incidences of fraud.
3. Set Up Automatic Payments
For timely payment of the dues, missed which may harm credit score, it is recommended to set automatic payments.
This makes sure that you have your credit card payment cleared every month without you having to be reminded.
But, it is still recommended that you look at your bill each month and ensure that all the charges on the bill are correct.
4. Use Your Rewards Wisely
Once your points are stacked up to a feasible limit, use them to meet travel expenses that fall within your category.
Due to the fact that this card is focused on offering, rewards on travel then any purchase done through flight,
hotel or any other form of transport is going to fetch the best value for the reward points earned. Do not use the points for non travel-hood purchases, because they may not be worthwhile.
Building Credit as a Student
As a result, one of the many reasons for getting a credit card as a student is the ability to establish a credit history. Credit score is a key factor of financial literacy and has impact on many aspects of your future, including loan and housing. Here are a few reasons why building credit early is essential:
1. Loans and Mortgages
In your new world after being a student, you are likely to be faced with auto loans or students loans or mortgage.
The lenders then use your score to decide whether or not you are a risk as a borrower.
A good credit score will enable one get a good deal in terms of loans and also easier interest rates to be met.
2. Renting an Apartment
It is common that, in assessing applications for tenancy, landlords run credit checks or at least inquire about credit scores.
A good credit score is an evidence of a credit worthy citizen hence improving your credit status to enhance the chances of being given a house by a landlord.
3. Job Opportunities
Some employers seek credit reports during an employment process, especially when the employee that is being hired will be working under a financial sector.
Good credit history has been found to improve employees’ chances of finding a job.
4. Better Credit Cards
In simple terms, it means that as you start paying bills and repay loans and get more involved in credit activities, you get larger possibilities of premium credit cards with even more rewards,
special offers, and higher credit limits. Perhaps these cards offer more opportunities for great flexibility and the best way to optimize the available rewards.
Final Thoughts: Should You Get The Bank of America Travel Rewards Credit Card for Students?
The Bank of America Travel Rewards Credit Card for Students is recommended for students,
who need a credit card in order to build credit history and have all the same useful travel rewards.
It has no annual fee, so if a cardholder spends $1000 then he or she gets 1,500 points for each dollar spent in any category,
the first 25000 points given are usually in the first three months, thus the card is quite valuable