Student Credit Card Review: Citi Dividend for College Students Worth It?
Read more about Citi® Dividend® Card for College Students
Free of annual fees, the Citi® Dividend® Card for College Students offers 1% cash back on all eligible purchases. Cardholders also receive an introductory purchase APR and a variety of extra protections. Because this card does not require a co-signer from students who have an income, it can be a good pick for a first credit card.
Pros and Cons
Good cash back credit card for college students with moderate spending
This card comes with a 7-month 0% introductory purchase APR . After this introductory period, the purchase APR for the card can be as low as 13.99% or as high as 23.99% depending on your creditworthiness. There is no introductory rate for balance transfers and the cash advance APR is 25.24%.
Cardholders also have the ability to earn 5% cash back for purchases in various merchant categories that rotate every quarter throughout the year, such as department stores, travel, and more. Right now, on eligible purchases within the Hilton Portfolio, car rental agencies, movie theaters and theme parks from 7/1/14 - 9/30/14. You do have to enroll each quarter (quick and easy).
All other purchases earn 1% cash back throughout the year, making it easy to get extra money to put in savings so you can afford to do something special for spring break.
Cash back is accumulated in the form of Dividend Dollars, which can be redeemed for cash in $50 increments. You can earn a maximum of 300 Dividend Dollars per calendar year. This cap may or may not be a problem for you, depending on how many purchases you charge to your card and the bonus rate they earn. Dividend Dollars do not expire as long as your account stays active.
Most of us make quite a lot of our purchases online these days, which opens us up to the risk of fraud. Citi has built in some added protections to this card to help keep your account and identity safe. Their Virtual Account Numbers, for example, generates a substitute credit card number so you don’t have to share your real number with an unknown online merchant.
You also receive $0 Fraud Liability so you won’t have to pay a single cent for any unauthorized charges that are made with your card. Cardholders also receive identity theft assistance in the event that they do become victim to identity theft.
In addition to providing its cardholders with cash rewards, this card also keeps them protected. These extras include car rental insurance, travel accident insurance, retail purchase protection and an extended warranty service.
The purchase protection program makes it so most items purchased with your Citi Card are protected against theft, fire or accidental breakage for up to 90 days from the date of purchase. If these events happen during the covered time frame, you can be reimbursed up to $1,000.
The extended warranty will extend manufacturers’ U.S. warranties of one year or less for up to one additional year when you purchase items with your card. This can be a huge cost savings for products like computers and televisions.
The Citi Dividend Card for College Students is a good fit for students who will spend a moderate amount in the card’s bonus categories and want cash rewards for their spending, along with bonus protections. Students who are high spenders or want to transfer a balance should look elsewhere.
(Writing by Meghan, Editing by Erin K)
Editorial Note: This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Citi. This site may be compensated through the Advertiser's affiliate programs.
Disclaimer: This content was first published on September 11, 2011. This content may have been updated on June 19, 2014. Information including APR, terms and benefits may vary, be out of date, or not applicable to you. Information is provided without warranty. Please check Citi website for updated information.
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