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Sallie Mae, a company generally known for student loans, is getting into the credit card business.
Sallie Mae will soon be offering three new credit cards geared toward students and recent graduates, including one that offers cash back incentives for paying your bill on time. Here are some of the key features of these zero-annual-fee cards.
- For college students: Sallie Mae IgniteSM — Offers 1% unlimited cash back on purchases and a 25% cash back bonus after making six consecutive on-time payments. The card also offers an introductory 0% APR for purchases for the first six months after you open the account, and then a variable 15.24% to 25.24% APR on purchases after that.
- For recent grads: Salle Mae AccelerateSM — Offers 1.25% unlimited cash back on purchases and a 25% cash back bonus on rewards used to pay down a student loan. The card also offers an introductory 0% APR for purchases for the first 12 months after account opening, and then a variable 15.24% to 25.24% APR on purchases after that.
- For young professionals: Sallie Mae EvolveSM — Offers 1.25% unlimited cash back on purchases, and a 25% cash back bonus on your top-two spending categories each month. And this card also offers an introductory 0% APR for purchases for the first 12 months after account opening, with a variable 15.24% to 25.24% APR on purchases after the offer expires.
Sallie Mae is currently hosting a waitlist for people interested in applying for the new cards.
Want to know more?
If you’re in the market for a cash back card, there are certainly other cards out there that offer higher cash back rewards.
But if you’re a student looking to begin building credit history, the Sallie Mae IgniteSM card could be a good option because it incentivizes on-time payments.
If instead you’ve got student loan debt to pay off, the Sallie Mae AccelerateSM card could be a good option, because it offers an incentive for paying your student loans, with a cash back bonus each time you use rewards for loan payments.
As with any credit card, if you carry a balance on your Sallie Mae card from month to month, you’ll be charged interest. So if you’re thinking about applying for any of Sallie Mae’s credit cards, you’ll want to pay your balance in full and on time each month to avoid interest charges. And make sure you budget for expenses like your student loan payments before making any purchases just to earn credit card rewards.