Is the Ambition Credit Card Right for Building Student Credit?

March 15, 2024

Ambition Credit Card: Building credit as a student can be tough. You might not have a long credit history, and many traditional credit cards require a good credit score to qualify. The Ambition Mastercard from College Ave is a new option that caters to students in this exact situation. But is it the best choice? Let’s break down the key features of the Ambition Mastercard to see if it fits your needs.

The Ambition Mastercard from College Ave is a secured credit card designed to help students build credit. It boasts no interest rates and doesn’t require a hard credit check to apply. However, there’s a required security deposit and a monthly fee after six months.

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Ambition Credit Card: Friend or Foe for Building Credit?

Looking to build credit as a student? You might be considering the Ambition Mastercard from College Ave. It boasts no interest rates or credit checks, but there’s more to the story than meets the eye.

Pros of the Ambition Mastercard

Low deposit requirement: Unlike many secured credit cards, the Ambition Mastercard only requires a $50 security deposit to open an account. This makes it a good option for students on a tight budget.
No credit check: Because it’s a secured card, there’s no hard credit check required to apply for this card. This can be helpful for students who are just starting to build their credit history.
No interest or late fees: The Ambition Mastercard doesn’t charge interest or late fees. This is because you can’t carry a balance from month to month. If you don’t pay your balance in full by the due date, the funds will be automatically withdrawn from your security deposit.
Reports to credit bureaus: This is an important feature for building credit. The Ambition Mastercard reports your payment activity to all three major credit bureaus: TransUnion, Equifax, and Experian.

Cons of the Ambition Mastercard

Monthly fee: After the first six months, a $2 monthly fee will be applied to your account. There are other student credit cards available with no monthly fees.
Limited rewards: The Ambition Mastercard offers a modest 1.25% cash back on streaming services, food delivery, and rideshare services. All other purchases earn only 0.5% cash back. Some student credit cards offer higher rewards rates and have wider categories that qualify for cash back.
No upgrade path: The Ambition Mastercard doesn’t offer a path to graduate to an unsecured credit card with College Ave. Once you’re ready for a traditional credit card, you’ll need to apply with a different issuer.

Best Credit Cards For Students With No Credit History

Here are some of the best credit card for Students With No Credit History,

Capital One Quicksilver Student Cash Rewards Credit Card: No annual fee, no security deposit required, and offers 1.5% cash back on all purchases.
Discover it® Student Chrome: No annual fee, no security deposit required, and earns 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases per quarter, and 1% back on all other purchases.
Capital One Savor One Student Cash Rewards Credit Card: No annual fee, no security deposit required, and offers 3% cash back on dining, entertainment, streaming services, and grocery stores (excluding superstores).

The Ambition Mastercard can be a good option for students with limited credit history or a small budget for a security deposit.

However, the monthly fee and limited rewards program make it less attractive than some other student credit cards on the market. If you can qualify for a traditional student credit card with no annual fee and good rewards program, that might be a better option in the long run.

Ambition Credit Card FAQ: Building Student Credit

01. Is the Ambition Credit Card good for building credit?

The Ambition Mastercard can be a decent option for students with no credit history to start building credit responsibly. Here’s why:

– Low deposit and no credit check: This is a major advantage for beginners.
– Reports to credit bureaus: On-time payments help build a positive credit history.

However, there are some drawbacks to consider:

– Monthly fee: Many student cards have no fees, so the $2 monthly fee after six months can add up.
– Limited rewards: Cash back is lower than some competitor cards.

02. What are some alternatives to the Ambition Credit Card?

– Capital One Quicksilver Student Cash Rewards Credit Card: No annual fee, no deposit, 1.5% cash back, and a sign-up bonus.
– Discover it® Student Chrome: No annual fee, no deposit, 2% cash back at gas stations and restaurants (up to $1,000 per quarter), and 1% back on everything else.

03. Should I get the Ambition Card if I already have some credit history?

If you’ve already started building credit, you might find better options with higher rewards programs or benefits tailored to your spending habits.

04. Can I upgrade from the Ambition Card to a better card later?

No, College Ave doesn’t offer an upgrade path for the Ambition Mastercard. You’d need to apply for a card from a different issuer when you’re ready for more features or rewards.

Overall, the Ambition Credit Card can be a decent option for students with no credit history to take a first step in building credit. However, it’s important to compare it to other student credit cards that might offer similar features or even better rewards programs without any fees.

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