Student Life Made Easy: Top Credit Cards for Students.
As a student, managing finances and building credit can be a daunting task. Between textbooks, tuition, and living expenses, it’s essential to make the most of your money. One effective way to do this is by using a student credit card. Many student credit cards come with rewards and welcome offers. Use your student card responsibly, which means paying your balance in full by the due date every month, and you’ll be on your way to a good credit score.
A student credit card can help you:
– Build credit history and improve your credit score – Earn rewards and cashback on everyday purchases – Enjoy exclusive benefits and discounts – Develop responsible spending habits
But with so many options available, choosing the right student credit card can be overwhelming.
In this article, we’ll explore best student credit cards, highlighting their features, benefits, and rewards. Whether you’re a college or university student, we’ll help you find the perfect card to suit your needs and financial goals.
A student card is designed specifically for those who are in college or grad school. Credit card issuers understand that young adults may have a limited credit history, so these cards are easier to get. A student credit card is a good way to build credit before you graduate.
Student cards usually have smaller credit limits because they’re designed for those who have little credit. Many of these cards have rewards, so you can save money on specific categories, such as gas or groceries.
But before you apply for a student credit card, make sure you’re ready for the responsibility. Cards are a great way to build credit, but if you don’t use them the right way, you can end up in credit card debt.
I’ve always believed that college is a great time to build credit, but only if you use your student card responsibly. This means you must follow my No. 1 credit card rule: Always pay your balance in full and by the due date.
I’m going to confess something to you. As soon as I graduated from college, I got into credit card debt because I didn’t understand what “responsible use” meant. To me, a credit limit was a mere suggestion, not a rule I was supposed to follow.
I spent two years clawing my way out of credit card debt. I started using a budget and tracked my expenses. Ever since then, I’ve been passionate about financial literacy, especially when it comes to credit cards.
So set yourself up for credit success by never carrying a balance. When you graduate, you’re likely to have student debt to pay off. The last thing you need is to have credit card debt, too. To stay out of credit card debt, create a budget while you’re in college and track your expenses. Set up payment reminders via email or text messages so you never miss a payment. Do this and you’ll build a solid credit history and develop a good credit score.
Seek a credit card that offers prequalification, and don’t apply for more than one card at a time. Each credit card application results in a hard credit inquiry, which can take off up to five points off your score.
If you’re under 21, you’ll need to show proof that you have enough income to cover any debt you incur. You also must be enrolled in college or grad school to qualify for a student credit card.
Best Student Credit Cards
1. Discover it® Student Cash Back:
Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Redeem your rewards for cash at any time.
No credit score required to apply.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
No annual fee and build your credit with responsible use.
0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.74% – 26.74% applies.
Terms and conditions apply.
2. Capital One Savor Student Cash Rewards Credit Card:
Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
Early Spend Bonus: Earn $50 when you spend $100 in the first three months
Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
Enjoy no annual fee, foreign transaction fees, or hidden fees
Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply
Earn up to $500 a year by referring friends and family when they’re approved for a Capital One credit card
Earn 8% cash back on entertainment purchases when you book through the Capital One Entertainment portal
Build your credit with responsible card use
Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you.
3. Bank of America® Travel Rewards Credit Card for Students:
Earn unlimited 1.5 points for every $1 you spend on all purchases everywhere, every time and no expiration on points
25,000 online bonus points if you make at least $1,000 in purchases in the first 90 days of your account opening – which can be redeemed for a $250 statement credit toward travel purchases
No annual fee and no foreign transaction fees
Chip Cards now with chip technology for enhanced security and protection when making purchases at chip-enabled terminals in over 130 countries
0% introductory APR for 15 billing cycles on purchases. and for any balance transfers made within the first 60 days of opening your account. After the intro APR offer ends, a Variable APR that’s currently 19.24% – 29.24% will apply. A 3% fee applies to all balance transfers made in the first 60 days.
4. Capital One Quicksilver Student Cash Rewards Credit Card:
Earn unlimited 1.5% cash back on every purchase, every day
Early Spend Bonus: Earn $50 when you spend $100 in the first three months
Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
Enjoy no annual fee, foreign transaction fees, or hidden fees
Lock your card in the Capital One Mobile app if it’s misplaced, lost or stolen
Earn up to $500 a year by referring friends and family when they’re approved for a Capital One credit card
Build your credit with responsible card use
Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you
5. Chase Freedom Rise®:
Increase your approval chances – Having a Chase checking or savings account with a balance of at least $250 will increase your chances of getting approved for Chase Freedom Rise®
Earn Cash Back – With Chase Freedom Rise®, you can start building credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
Credit Limit Increase – As a Freedom Rise cardmember, you’ll be evaluated for a credit line increase in as soon as 6 months. Your credit line is the maximum amount of money you can spend on your Freedom Rise® Card
Free Credit Score – Track your credit score and learn how to build it with Chase Credit Journey.
No Annual Fee – You won’t have to pay an annual fee for all the great features that come with your Freedom Rise® card.
Member FDIC.
6. Petal® 1 “No Annual Fee” Visa® Credit Card:
This card might be a good fit if you want to build credit and earn rewards without paying an annual fee.
Credit Needed: Excellent, Good, Limited History, No History, Limited, No Credit
Annual Fee:$0
Rewards Rate: 1.5x cash back on all purchases
7.Deserve® EDU Mastercard for Students:
Receive one year of Amazon Prime Student on Deserve after spending $500 in the first three billing cycles with your EDU card (Lifetime Value of $59).
Earn 1% Cash Back on all purchases with your Deserve EDU Mastercard. Once approved, you’ll automatically start earning cash back on all purchases.
Feel secure with cell phone protection up to $600.
No deposit required. No annual fees.
No international transaction fees on purchases abroad so you can travel with confidence.
No Social Security Number required for international students to apply.
Refer A Friend Program: Refer anyone to Deserve using your personal referral code. Upon approval, card activation and use, you’ll receive $30 and so will your referral. Referral bonuses are unlimited!
Manage and track your spending, set automatic payments and securely freeze your card all through one easy to use app.
See if you prequalify with no impact to your credit score in minutes.
Deserve Mastercards are issued by Celtic Bank, Member FDIC.
Enjoy Mastercard Platinum Benefits intended to make your life easier like Mastercard ID Theft Prevention™ and Master Rental®.
8.Discover it® Student Chrome:
Unlimited Cashback Match for all new cardmembers – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 cash back into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
Redeem your rewards for cash at any time.
No credit score required to apply.
Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
No annual fee and build your credit with responsible use.
0% intro APR on purchases for 6 months, then the standard variable purchase APR of 17.74% – 26.74% applies.
You can learn good credit habits and graduate with some positive credit history, which could allow you to rent an apartment and make major life purchases.
Issuers may offer miles, points or cash back rewards for every dollar you spend to enhance the value of your card and encourage you to use it.
Many credit card companies offer zero liability protection if your credit card or card number is lost or stolen and will not hold you responsible for any unauthorized charges.
Cons
Student cards come with lower limits than regular cards because users have no history showing they can use credit responsibly.
Rates are usually higher than on other types of cards because students have little to no credit history.
Some student credit cards earn cash back or other rewards – but often at a lower rate than regular cards.
If you blow your budget and stop making your credit card payments, you will hurt your credit score and owe late fees.
Consider these questions as you compare student credit cards to help you choose the right one.
Does the card provide your must-have features? Look for a student credit card that charges no annual fee and reports to the three major credit bureaus. Check for no foreign transaction fees if you plan to travel or study abroad.
What are the rates and fees? These vary by credit card issuer, so you must take time to read the fine print. Look at the annual percentage rates, and check for annual fees, foreign transaction fees and other fees that might be hidden in the disclosure statements.
Do you have a chance to earn rewards or a sign-up bonus? Rewards can be an incentive to use your student credit card responsibly. Just make sure you can earn rewards for routine spending, such as gas, grocery and restaurant purchases. Otherwise, look for a card that offers a flat rate on all purchases.
Does the card require a security deposit? If you don’t get approved for a student card, another option is a secured credit card. These cards require security deposits, but if you use the card responsibly, it’s a good way to build credit.
What happens to the card when you graduate? Some issuers will transfer your student account to a standard card, and others will require you to apply for another credit card.
Good credit can help students land jobs. An employer may want to check your credit when you apply for a job but will need your written permission. Your credit report can give the employer an idea of how you handle responsibilities. What employers can access varies by state, but they won’t be able to see your credit score. Some states have prohibited employers from using credit reports in the hiring process.
Credit can affect auto insurance rates. In some states, your credit score is one of a number of factors auto insurers may consider when issuing and pricing policies. A good credit rating can drive down car insurance costs.
Good credit can make renting an apartment easier for students. Your credit score depicts your creditworthiness, and the higher the score, the better you look to a landlord. That is especially true in a competitive rental market. You may also get the benefit of paying a lower security deposit. A FICO® score of 670, which falls in the good range, can be helpful to rent an apartment, but keep in mind that cutoffs vary. The landlord may take a closer look at your credit details if your score is in the mid-600s or lower, according to myFICO, the consumer division of credit analytics firm FICO®.
Good credit is necessary for financing a home or car. A good credit history can help you qualify for a mortgage or car loan with a favorable interest rate. The higher your credit score, the more affordable your monthly payment could be. Even a difference of 20 points between credit scores can add up to thousands of dollars in savings over the life of a loan.
Some student credit cards are marketed to those who are new to credit. But if you’re still having trouble getting approved, you are not out of luck. You could ask a parent, a family member or a trusted friend to add you to an account as an authorized user, or consider applying for:
Rewards credit cards for students earn cash back, miles or points as incentives to pay with plastic instead of cash. Some cards offer bonus rewards in particular spending categories, and others earn a flat rate of cash back – say, 1% back – on every purchase. New cardholders may also benefit from sign-up bonuses worth hundreds of dollars in cash back or travel rewards. It’s important to read the fine print for the rewards program so you can benefit from your student card.
Student Card Cash Back Programs
A cash back credit card returns a percentage of what you spend on the card. Cards with bonus categories – some are fixed and others rotate – can boost your earnings for spending in certain categories compared with flat-rate cards.
The Bank of America® Customized Cash Rewards for Students is an example of a cash back card with bonus categories. It earns 3% back in a category of your choice, including gas, online shopping, travel, dining, drugstores, or home improvement and furnishings; 2% back at grocery stores and wholesale clubs; and 1% back on everything else. You’ll get 3% and 2% cash back on up to $2,500 in the combined choice, grocery and wholesale club category each quarter and then 1%.
Points and Mileage Programs
Other types of student credit card rewards programs let you accumulate points or miles that you can redeem for flights or hotel stays, merchandise, or gift cards.
What Makes a Student Credit Card Different From Other Credit Cards?
College student credit cards, unlike traditional cards, are designed for students with little to no credit history. A student card used responsibly can help you build credit and even score some perks.
The typical student card is unsecured, which means the issuer does not require a deposit to open the account. Other features separating student credit cards from traditional cards include:
Lower credit limits. Student cards may have lower credit limits than traditional credit cards because students don’t have a track record of paying back big balances. You might be able to get a higher credit limit once you make several on-time payments, depending on the card.
Limited rewards. Student credit cards may earn cash back in certain spending categories. But traditional cards offer more generous rewards, such as sign-up bonuses, airline miles and access to airport lounges.
Special benefits for students. These could include credits for maintaining good grades or paying bills on time. Some student credit cards may allow you to view your FICO® credit score for free.
Can You Prequalify for Student Credit Cards?
You may be able to prequalify for a student credit card but will need to check with the issuing bank. The issuer’s website often allows you to find out whether you prequalify for a card, with no harm to your credit score.
Prequalification saves you from applying for a bunch of credit cards that are out of your league. Each hard inquiry from a credit application could lower your score, although the effect diminishes after a year.
At the same time, prequalification is not a guarantee of approval. Being prequalified only means you have the baseline credit score and credit history that the issuer requires. You still have to fill out an application and hope for the best.
Do I Need a Job to Get a Student Credit Card?
A job might help you secure a student credit card. If you’re under 21, you will need proof of income – whether that’s from a job, an allowance or something else – or a co-signer.
What Do You Do With a Student Card After Graduation?
When you graduate, your student credit card should as well. Do not cancel your credit card, which could reduce the length of your credit history and hurt your credit. How long you’ve been using credit makes up 15% of your FICO® credit score.
Start by contacting your credit card company to update account details such as your graduation date, income and contact information. If your income has grown, you might be able to get a credit line increase and even request it through your issuer’s mobile app or your online account.
After you graduate, Discover will reclassify your card so that it is no longer a student credit card. If you have a student card from a different issuer and an on-time payment history, you can ask for a card upgrade.
You could also ask for a transfer to a product better suited to your needs, which would move your account history to a new card rather than closing the old student credit card.
How Old Do You Have to Be to Get a Student Credit Card?
If you are 18, you can apply for a credit card in your own name if you can show proof that you earn an independent income or have a co-signer. But many issuers do not allow co-signers, and those that do will expect co-signers to have good credit.
