Welcome to the second installment of The Best Credit Cards in America. In this edition, I’m giving awards for the Best Student Credit Card and the Best Secured Credit Card in America.
The category winners are the cards that score the highest number of points based on a unique, 41-factor formula I designed. The formula gives each card a “benefits/rewards score” and then subtracts the “costs score.” Using my formula, a “perfect” card gets a score of 100.
Since students are getting ready to go back to college, this seems like the right time to look at student credit cards. Many experts will disagree with me, but I think college is a great time to learn how to use a credit card. Hey, I even think high school is a good time if you have a kid who can handle it.
This only works, however, if the parent is very involved and keeps an eye on things. Leaving college with a good credit history gives your child a head start in life. Right away, they’ll save money on loans, insurance and other life necessities.
If your kid isn’t ready for a student card—and, really, you’re the only one qualified to make that call—consider a secured card. It’s like a credit card on training wheels, so to speak. Secured cards are also an excellent choice for those who are still recovering from the recession and who need to rebuild their credit. Use these cards responsibly, and you’re on your way to an improved credit history.
Okay, so let’s move along to the winners and find out what makes them so awesome.