Discover Financial Services (DFS), Bank of America Corp (BAC), Capital One Financial Corp. (COF): Three Credit Cards for Your College Freshman

Bank of America Corp (NYSE:BAC) also helps holders of these cards learn about personal-finance basics such as budgeting and building credit with its “Ultimate Money Skills” tips. And because it’s a Visa card, it’s accepted at more places than the Discover it Card for Students.

Capital One Financial Corp. (NYSE:COF) : Journey Student Rewards
The final option comes from Capital One Financial Corp. (NYSE:COF), which offers a card intended for “[s]tudents with limited or average credit who want to build credit and get rewarded for it.” It’s recommended by 91% of its reviewers and sports a strong rating of 4.4 out of five stars.

• Rewards: 1% cash back on all purchases and a 25% bonus on the cash back earned when the bill is paid on time.
• Rate: 19.8% variable APR.

This card lacks some of the benefits of the other two, but one major benefit is that users have access to their monthly credit scores and can freely monitor their credit — a great tool to help students prepare for life beyond college.

The bank set to benefit
So which option is the best for investors? Keep an eye on Discover Financial Services (NYSE:DFS), which is making a big play in the student market through both its credit card offering and its rapid expansion in the student-loan industry. Its student-loan holdings have increased by 50% over the past two and a half years.

What’s more, Discover Financial Services (NYSE:DFS) has ranked No. 1 in the Brand Keys Customer Loyalty Engagement Index Report for the past 17 years. So if it’s able to begin building a loyal customer base at a young age, it could benefit the company for years to come.

The article 3 Credit Cards for Your College Freshman originally appeared on Fool.com and is written by Patrick Morris.

Patrick Morris owns shares of Bank of America and Discover Financial Services. The Motley Fool recommends and owns shares of Bank of America and Visa.

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