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Updated on Thursday, July 6, 2017
The Altra Federal Credit Union Student Visa® Credit Card is made for college students and helps you build credit while also taking advantage of rewards. You’ll Earn double Reward Points on every dollar of purchases in the first 60 days after opening your new account, then 1 point per dollar spent. The rewards points can be redeemed for cash back, travel, merchandise, and more. This card is especially beneficial if you plan on taking out an auto loan in the next few years, as you may be eligible to redeem rewards points for a .25% or .50% interest reduction on an Altra auto loan. The various features Altra provides make this card a good option for students starting their credit journey. TheAltra Federal Credit Union Student Visa® Credit Card is featured as one of our recommendations for best student credit cards of September 2020.
Altra offers a credit card designed with students in mind to help you build credit. There is a $0 annual fee for this card, though you may have to pay a $5 membership fee; but more on that later. In addition to a low 13.90% Fixed APR, Visa Checkout, and fraud alerts, Altra offers a rewards program. You will Earn double Reward Points on every dollar of purchases in the first 60 days after opening your new account, then 1 point per dollar spent. This allows you to get a rewards boost while you’re in the honeymoon phase of being a cardholder. However, this may not be the largest rewards program compared to other cards, but it is better than no rewards.
The reward points that Altra offers do not have a standard value like most rewards programs. Instead, points can be redeemed for merchandise or cash back at CURewards.com. Note that there is only one cash back option of $50, and you need 8,334 points to redeem. So you would need to spend $8,334 to receive $50 cash back. Although you earn unlimited rewards points, they expire after five years — but on the last day of the year. For example, if you earned points on June 1, 2017, they would expire in five years but on the last day of the fifth year — December 31, 2022. As a result, think twice about saving all your points for a large reward because you may lose them.
In addition to a rewards program, Altra will give you a $20 cash back reward at the end of your first year as a cardholder. All you need to do to qualify is to maintain your account in an “exceptional” manner by having no late payments, no over-the-limit usage, and 6 out of 12 months’ activity. This should be an easy $20 since your goal is to pay every statement in full each month.
If that isn’t enough, Altra will choose one cardholder at random each quarter and pay their previous month’s purchases, with a minimum of $50 and maximum of $500 paid. To qualify for this “lottery” you need to be in good standing, which means you pay your bill on time and in full every month, and wait for your lucky day!
If you plan on taking out an auto loan in the next few years, Altra has a unique offer that can save you significant money. You are able to redeem 5,000 points for a .25% interest reduction or 10,000 points for a .50% interest reduction on your Altra auto loan.
Keep in mind that your primary goal with a student card is to create a positive credit history with the hopes of having a credit score in the 700s upon graduation. Don’t let the prospect of rewards hinder your credit and lead to overspending. Some best practices to promote a positive credit score include paying each statement in full and on time and using no more than 20% of your credit limit — meaning don’t max out your card.
Altra designed this card with students in mind, which means they don’t expect you to have a great credit history, or any at all. Though they do expect you to have a stable source of income, so a job is needed to apply for this card. This will prove that you can afford to make your monthly payments on time and are responsible.
Another requirement Altra has that is unique to credit unions is that you need to be a member to become a cardholder. No worries, though, since the application process is simple. You can either qualify for membership via various eligibility options or by joining the credit union for $5. In addition, while you’re actively using the card you will need to keep $5 in a savings account.
Altra offers a relatively low 13.90% Fixed APR, compared to other cards that offer APRs as high as 24.74% variable. The low APR is beneficial if you don’t pay your balance in full one month and as a result are charged interest. It helps that Altra has an APR up to 10% lower than competing cards; however, you should always pay your bill in full every month to avoid interest charges and damage to your credit score.
Earn rewards points.
Altra provides you the opportunity to build your credit while also earning rewards. With this card you can Earn double Reward Points on every dollar of purchases in the first 60 days after opening your new account, then 1 point per dollar spent. Don’t let this get to your head and spend more than you can to maximize your double points. Remember that your primary goal is to build good credit, and earning rewards is only an added bonus. It’s important to note that Altra rewards points do not have a standard value like typical rewards programs from other credit cards. Point value varies based on each redeemable item.
$20 cash back for good behavior.
If at the end of your first year as a cardholder you have no late payments, no over-the-limit usage, and used your card for 6 out of 12 months, you will receive a $20 cash back reward. This is an added perk for responsible cardholders that makes Altra’s card more appealing.
Random winner each quarter.
An added level of excitement is Altra’s bill pay “lottery.” Each quarter Altra will choose one random cardholder and pay their previous month’s purchases, anywhere between $50 and $500. Make sure you’re in good standing to qualify.
Redeem points for a lower interest rate on an Altra vehicle loan.
If a car is in your near future, Altra provides a great option that can save you money. You will receive a .25% or .50% point reduction on your loan by redeeming 5,000 and 10,000 points, respectively. This may save you a significant amount of cash in the long run.
Foreign transaction fee.
Be careful if you travel abroad since this card charges a 1.00% of each transaction in U.S. dollars foreign transaction fee. This isn’t as high as some cards that charge 3%; however, you can find other student cards that don’t charge a fee when you’re traveling out of the country, such as the Discover it® Student Cash Back card or the Journey® Student Rewards from Capital One®.
Need to join the Altra Federal Credit Union.
Unlike credit cards from banks, you have to be a member of the Altra FCU. There are two ways to become a member, and the first option — meet their eligibility requirements — is free. Otherwise you will need to pay a one-time $5 membership fee. All members will also need to have a $5 balance in an Altra savings account that must remain in the account while you have the card open.
If you’re a student who doesn’t mind joining a credit union and wants to earn rewards while building your credit score, this card may be right for you. We recommend this card for students who plan on taking out an auto loan since you can benefit greatly from the .25% or .50% interest reduction Altra offers. With numerous cardholder benefits, the AAltra Federal Credit Union Student Visa® Credit Card is a good choice for students starting their credit journey.
If You Frequently Spend on Gas, Groceries, and Restaurants
The Golden 1 Credit Union Platinum Rewards for Students card is a great card if you want to receive a cash rebate for your purchases. With Golden 1 you will earn a cash rebate instead of rewards points that will be deposited into your account at the end of every month. The cash rebate program also boasts a high 3% rebate for gas, grocery, and restaurant purchases, with 1% for all other purchases. If you frequently spend money in these areas, you’ll be able to maximize your cash rebate. You can become a member of Golden 1 by joining the Financial Fitness Association for $8 per year and keeping at least $5 in a savings account.
If a Credit Union Isn’t for You
Not everyone wants to join a credit union, and there are numerous student credit cards offered by banks. The Discover it® Student Cash Back card is a great card to help you build credit while earning cash back. With Discover you earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. They also reward students with good grades, match your cash back at the end of the first year, and provide access to your FICO® score for free. Overall, Discover is a great card for students who don’t mind tracking rotating categories to maximize cash back.
It’s a smart choice to start building your credit while you’re in college so by the time you graduate you have a healthy credit score in the high 600s to mid 700s. As a result, you’ll be in good standing with financial institutions and will benefit from being able to make larger purchases like a new car. Also, if you want to get an additional credit card that offers cash back or rewards, you will be more likely to get approved with a good credit score. Check out our student credit card guide.
To join the Altra Federal Credit Union you may already meet several eligibility options that come at no cost. If not, there is a one-time $5 membership fee. You will also need to have a $5 balance in an Altra savings account that must remain while you have the card open.
You should work hard to make sure you make payments on time every month. A missed payment will lead to a late fee and interest accruing on the balance. This will ultimately leave a negative mark on your credit report and lower your credit score. Try not to spend more than you are able to and stick to a budget with these helpful budgeting apps.
If a credit card isn’t the right product for you, don’t fret, there are other options available. You can build credit by using a secured card or by becoming an authorized user on your parents’ account. A secured card is where you deposit an amount of money that acts as collateral, and the amount you deposit becomes your credit limit. This is a great way to build credit with less risk than a typical credit card. Compare the best secured cards for your needs. Your second option, becoming an authorized user, allows you to piggyback off of someone else’s good credit. You will receive their good credit behavior on your credit report.