Discover® More Student Card

Editor's Review: The Discover Student Card is one of the best credit cards for college students currently available and is also our "TOP PICK" student credit card offer. This student credit card, which is issued by Morgan Stanley, was specifically created for those who have a limited credit history, as most college students do, or for those with an average credit rating. In addition, it has a cash back rewards system, which is an added perk not often seen with student credit cards.

With the Discover Student Card, cardholders are able to earn an amazing 5% when purchases are made with participating merchants. All other purchases can still earn a 1% cash back reward. The exact percentage of cash back earned depends on the amount of money spent. As such, a cardholder who spends up to $1,500 earns a .25% rebate. Those who spend between $1,500 and $3,000 earn a .5% rebate, while those spending over $3,000 receive the entire 1% cash back reward.

When determining the cash back rewards, the percentage only applies to money spent within that price range. For example, a cardholder who spends $5,000 in a year on the Discover Student Card will receive a .25% rebate on the first $1,500, a .5% rebate on the next $1,500, and a 1% rebate on the remaining $2,000.

To sweeten the cash back rewards deal a little more, this student credit card provides cardholders with a double Cashback Bonus if they redeem their rebate gift certificates with retailers or merchants who have partnered with Discover Card. In addition, there is no yearly limit on how many rebates can be earned and there is no expiration on the rebates, so long as the Discover Student Card remains active within a three year period.

With no annual fee, all of these great features come free with this student credit card. In addition, Discover is currently offering a 0% introductory APR for all purchases made on the card for 9 months.

After the introductory 0% offer has expired, this student credit card reverts to its regular 15.74% variable rate on purchases and 22.99% variable rate on cash advances. In addition, this card does use a "Two Cycles Average Daily Balance" method for determining interest owed. This results in more interest fees if the cardholder carries a balance over than a card using the "Average Daily Balance" method. Therefore, it is best to pay the balance in full each month in order to avoid increased interest fees.

The minimum line of credit provided by the Discover Student Card is $500, while the maximum is $5,000. Cardholders who are late making a payment on balances of up to $100 receive a $15 penalty fee. A balance of up to $1,000 will be assessed a $25 late fee and a balance over $1,000 will receive a $39 fee. Going over the credit limit with this student credit card will result in a $15 fee on balances up to $1,000 and a $35 fee on balances over $1,000.