Best Student Credit Cards

College students who are looking to build credit or improve their credit score can benefit from using a student credit card. These types of cards often come with unique features and rewards that cater to the needs of students. However, with so many options on the market, it can be overwhelming to choose the best one. In this guide, we’ll explore the top student credit cards available, their benefits and drawbacks, and what to consider when selecting a card. Whether you’re a student new to credit or looking to improve your score, this guide will help you find the right card to fit your needs.

What are student credit cards?

Student credit cards are credit cards specifically designed for college students who are either new to credit or are looking to establish and build their credit history. These types of credit cards typically have lower credit limits and fewer rewards compared to other credit cards, but they may come with unique features that cater to the needs of students.

Many student credit cards also have relaxed credit requirements, making them easier to obtain for those who have limited or no credit history. However, it’s important to use these cards responsibly to avoid accumulating debt and damaging your credit score.

How do student credit cards work?

Student credit cards work like any other credit card. They allow you to borrow money from the issuer to make purchases and then pay back the balance over time with interest.

When you apply for a student credit card, the issuer will review your credit history, income, and other factors to determine if you’re eligible for the card and what your credit limit will be. As a student, you may not have a long credit history or a high income, but many issuers offer student credit cards with relaxed credit requirements and lower credit limits.

Once you’re approved for a student credit card, you can use it to make purchases just like any other credit card. You’ll receive a monthly statement that details your purchases and the balance you owe. You’ll need to make at least the minimum payment each month to avoid late fees and interest charges.

Using a student credit card responsibly can help you build your credit history, which can be important when you’re ready to apply for other loans or credit cards in the future.

Benefits of student credit cards

Student credit cards come with a range of benefits that can be useful for college students. Here are a few of the most common benefits:

1. Easy Approval: Many student credit cards have relaxed credit requirements, making it easier for college students to qualify for a credit card even if they don’t have an established credit history.
2. Low or No Annual Fees: Many student credit cards come with no annual fees, which can help students save money while they’re in school.
3. Rewards: Some student credit cards offer rewards for purchases, such as cash back or points, which can help you save money or earn rewards for purchases you’d make anyway.
4. Building Credit: Using a student credit card responsibly can help students establish and build their credit history, which can be important for future loans and credit applications.
5. Fraud Protection: Student credit cards typically come with fraud protection, which can help protect you if your card is lost or stolen.

It’s important to note that while these benefits can be useful, they should not be the only factor considered when choosing a student credit card. It’s important to choose a card that meets your specific needs and to use the card responsibly to avoid accumulating debt and damaging your credit score.

Downsides to having a credit card as a student

While having a credit card as a student can provide many benefits, there are also potential downsides that you should be aware of, including:

1. High-interest rates: If you don’t pay off your balance in full each month, you may be charged high-interest rates, which can add up quickly.
2. Temptation to overspend: With a credit card, it’s easy to spend more than you have, which can lead to debt and financial trouble.
3. Fees: Some credit cards charge annual fees, late payment fees, or other fees that can add up and increase the cost of using the card.
4. Credit score impact: If you miss payments or carry a high balance, it can negatively impact your credit score, which can make it more difficult to obtain loans or credit in the future.
5. Identity theft: As with any credit card, there is a risk of identity theft, which can lead to unauthorized charges and damage to your credit score.

It’s important to use a student credit card responsibly and to only charge what you can afford to pay off each month to avoid these potential downsides.

How to choose the best student credit card

Choosing the best student credit card can be overwhelming, as there are many options available. Here are some factors to consider when choosing a student credit card:

1. Annual fees: Look for a card with no annual fees or low annual fees to avoid unnecessary expenses.
2. Rewards: Choose a card that offers rewards that align with your spending habits, such as cash back, points, or miles.
3. Interest rates: Look for a card with a low-interest rate or 0% APR intro offer to save money on interest charges.
4. Credit limit: Consider a card with a credit limit that fits your needs, but be cautious not to overspend.
5. Credit-building features: Choose a card that reports to all three credit bureaus, offers credit education tools, and provides access to your credit score.
6. Customer service: Look for a card with excellent customer service and easy access to support when you need it.
7. Security features: Choose a card with fraud protection, zero-liability policies, and the ability to freeze your account if your card is lost or stolen.
8. Issuer reputation: Choose a card from a reputable issuer with a history of responsible lending practices and positive customer reviews.

By considering these factors and researching your options, you can find a student credit card that meets your specific needs and helps you build a solid credit history while in college.

Pros and cons of student credit cards

Like any financial tool, student credit cards come with their own set of advantages and disadvantages. Here are some of the pros and cons of using a student credit card:

Pros:

1. Establishing credit history: A student credit card can help you establish a credit history early in life, which is essential for making larger purchases like a car or a home in the future.
2. Rewards: Many student credit cards offer cash back, points, or miles for purchases, allowing you to earn rewards on your everyday expenses.
3. Financial education: Some student credit cards offer resources to help you learn about credit, budgeting, and other financial topics.
4. Fraud protection: Most credit cards offer fraud protection, so if your card is lost or stolen, you’re not responsible for unauthorized charges.
5. Emergency funds: Having a credit card can provide you with a financial safety net in case of an emergency, like unexpected medical bills or car repairs.

Cons:

1. High-interest rates: Student credit cards typically come with higher interest rates than other credit cards, so it’s essential to pay off your balance each month to avoid interest charges.
2. Overspending: Having a credit card can lead to overspending and accumulating debt if you’re not careful.
3. Fees: Some student credit cards have annual fees, late payment fees, and balance transfer fees that can add up quickly.
4. Credit score impact: Late payments or high balances can negatively impact your credit score, making it harder to qualify for loans or credit in the future.
5. Temptation: With easy access to credit, it can be tempting to spend beyond your means, leading to financial trouble.

By weighing the pros and cons and using your student credit card responsibly, you can take advantage of the benefits while minimizing the drawbacks.

How are student credit cards used?

Student credit cards can be used like any other credit card to make purchases or pay bills online or in-person. Students can use their credit cards to build their credit history by making timely payments and keeping their balances low. It’s important for students to use their credit cards responsibly and avoid overspending, as high balances and missed payments can harm their credit scores. Additionally, some student credit cards offer rewards programs that allow students to earn cashback or points for their purchases.

How to get the most out of your student credit card

To get the most out of your student credit card, it’s important to use it responsibly and take advantage of any rewards or benefits offered. Here are some tips to help you make the most of your student credit card:

1. Make timely payments: Late payments can harm your credit score and result in costly fees and penalties. Be sure to make at least the minimum payment on time each month to avoid these issues.
2. Keep your balance low: High balances can also harm your credit score and increase the amount of interest you owe. Try to keep your balance below 30% of your credit limit.
3. Use your rewards: If your student credit card offers rewards or cashback, be sure to use them. These rewards can help you save money and make the most of your spending.
4. Monitor your account: Keep an eye on your credit card account to ensure that there are no fraudulent charges or errors. You can do this by setting up alerts or regularly checking your account online.
5. Upgrade your card when necessary: As you build your credit history and your financial needs change, consider upgrading to a card with better rewards, lower interest rates, or other benefits that better suit your needs.

Types of credit cards for students

There are several types of student credit cards available, each with its own set of features and benefits. Here are some common types of student credit cards:

1. Secured credit cards: Secured credit cards require a security deposit, which becomes your credit limit. These cards are a good option for students with no credit or poor credit, as they can help establish or improve credit history.
2. Unsecured credit cards: Unsecured credit cards do not require a security deposit, but typically require a good credit score or co-signer. These cards often offer rewards and benefits, but may also have higher interest rates.
3. Student rewards credit cards: These credit cards offer rewards for purchases made with the card. Rewards may include cashback, points, or discounts on specific purchases. Student rewards credit cards can be a good way to earn rewards while building credit.
4. Student travel credit cards: These credit cards are designed for students who travel frequently. They may offer rewards for travel purchases, as well as perks such as travel insurance and airport lounge access.
5. Low-interest credit cards: These credit cards offer lower interest rates than other types of credit cards. They can be a good option for students who plan to carry a balance on their credit card.

When choosing a student credit card, it’s important to consider the features and benefits that are most important to you. Think about your spending habits, financial goals, and credit history to find a card that meets your needs.

Are there any business credit cards for students?

There are credit cards that are specifically designed for college students who want to start building their credit history. These cards are often marketed as “student credit cards” and may come with features such as no annual fees, low interest rates, and rewards programs that cater to students’ spending habits.

However, there are no credit cards that are specifically marketed as “business student credit cards” as the focus of student credit cards is on helping students build their credit history, rather than providing benefits for businesses. That being said, some student credit cards may offer benefits that could be useful for students who are running a small business or engaging in entrepreneurship. For example, some student credit cards may offer cashback or rewards on purchases at office supply stores, which could be beneficial for students who need to purchase supplies for their business.

How to best compare student credit cards

When comparing student credit cards, there are several factors to consider. Here are some of the most important ones:

1. Annual fees: Many student credit cards have no annual fees, but some may charge a fee. Make sure to compare the fees across different cards.
2. Rewards: Some student credit cards offer cashback or rewards points for purchases. Consider the type of rewards offered and how they align with your spending habits.
3. Interest rates: Look for a student credit card with a low interest rate, especially if you plan to carry a balance.
4. Credit limit: The credit limit is the maximum amount of credit that you can use on your card. Some student credit cards may have lower credit limits, so make sure it is enough for your needs.
5. Introductory offers: Some student credit cards may offer introductory bonuses such as 0% APR for a certain period of time or a sign-up bonus. Consider these offers carefully and how they align with your needs.
6. Credit-building opportunities: Look for a student credit card that reports to major credit bureaus. This can help you build your credit history and improve your credit score over time.
7. Customer service: Consider the quality of customer service offered by the credit card issuer. Check online reviews to get an idea of their customer service reputation.

By comparing these factors across different student credit cards, you can choose the card that best meets your needs and aligns with your financial goals.

The future of student credit cards

The future of student credit cards is likely to evolve alongside changes in the higher education landscape and the financial services industry. As the cost of education continues to rise, students may increasingly turn to credit cards to help cover their expenses. This could lead to a greater demand for student credit cards with rewards programs and other perks that can help students save money and build their credit.

At the same time, financial institutions are becoming more attuned to the needs of younger consumers, including students. This could result in more competitive offers and lower fees for student credit cards.

Additionally, as technology continues to advance, student credit card issuers may incorporate new features such as mobile payment options and personalized spending tracking tools to better serve the needs of their customers.

Overall, while the future of student credit cards may be shaped by various factors, it’s likely that these cards will continue to be a valuable financial tool for students who want to establish credit and manage their expenses while pursuing their education.

Do you need good credit score to apply for a student credit card?

The credit score required to qualify for a student credit card can vary depending on the issuer and the specific card. Generally, issuers will consider factors such as credit history, income, and employment status in addition to credit score when evaluating an application. Many student credit cards are designed for individuals with limited or no credit history, so a lower credit score may still be sufficient to qualify. However, a higher credit score can increase the likelihood of approval and may also result in more favorable terms, such as a higher credit limit or lower interest rate. It is important to review the specific requirements for each card and to check your credit score before applying to determine your eligibility.

Glossary of common student credit card terms

Here are some common terms you might come across when considering a student credit card:

1. Credit limit: The maximum amount of credit extended to you by the issuer.
2. Annual fee: A yearly fee charged by the issuer for maintaining the credit card account.
3. APR: Annual percentage rate. The interest rate charged on balances carried over from month to month.
4. Introductory APR: A temporary APR that is lower (or 0%) for a limited time after account opening.
5. Rewards: Benefits earned for using the card, such as cash back or points that can be redeemed for travel, merchandise, or other rewards.
6. Credit score: A numerical rating that reflects your creditworthiness and the likelihood that you will pay your bills on time. Credit scores range from 300-850.
7. Credit utilization: The amount of credit you’re using divided by your credit limit. It’s typically expressed as a percentage.
8. Grace period: The time period during which you can pay off your balance without accruing interest charges.
9. Late payment fee: A fee charged by the issuer if you don’t make your payment on time.
10. Balance transfer: Moving debt from one credit card to another. Some cards offer promotional balance transfer rates, allowing you to transfer a balance from another card at a lower rate (or 0%) for a limited time.
11. Authorized user: A person you authorize to use your credit card.
12. Foreign transaction fee: A fee charged by the issuer for transactions processed outside of the United States.
13. Cash advance fee: A fee charged for withdrawing cash using your credit card.

Can international students apply for student credit cards?

Yes, international students studying in the United States with a valid student visa and Social Security number can apply for a student credit card. However, international students may have a harder time qualifying for credit cards due to their lack of credit history and other factors. They may need to provide additional documentation, such as proof of income or a co-signer who is a U.S. citizen or permanent resident, to be approved for a student credit card.

Are student credit cards free?

While some student credit cards may not have an annual fee, most of them do have fees associated with them. These fees can include late payment fees, foreign transaction fees, balance transfer fees, cash advance fees, and more. It is important to carefully read and understand the terms and conditions of any credit card before applying for it, including the fees that may apply.

Can a student credit card help build credit?

Yes, a student credit card can help build credit if used responsibly. By making on-time payments and keeping credit utilization low, a student can establish a positive credit history, which can be helpful when applying for other types of credit in the future, such as a car loan or a mortgage. It’s important to note, however, that late payments and high credit utilization can have a negative impact on credit scores, so it’s important to use the card responsibly and make payments on time.

Can a student credit card be used to pay for tuition?

Yes, a student credit card can be used to pay for tuition. However, it is important to check with your school to make sure they accept credit card payments for tuition and if there are any fees associated with using a credit card. Additionally, using a credit card to pay for tuition may not be the most cost-effective option, as credit cards typically charge higher interest rates than student loans or other forms of financial aid.

How to get a student credit card

Getting a student credit card is relatively easy, but it requires some steps to ensure you’re qualified and ready to manage your credit responsibly. Here’s how to get a student credit card:

1. Verify your eligibility: To apply for a student credit card, you must be at least 18 years old and enrolled in an accredited college or university.
2. Check your credit score: Most student credit cards don’t require an excellent credit score, but having a good credit score can increase your chances of approval and give you access to better rewards.
3. Research and compare different student credit card options: Look for cards with no annual fees, low APR, and attractive rewards, such as cashback or points for travel or shopping.
4. Apply for the card: You can apply for a student credit card online or in-person at a bank or credit union. Be prepared to provide your personal information, including your name, address, social security number, and income details.
5. Wait for approval: The approval process usually takes a few days to a week. If you’re approved, the credit card company will send you a card in the mail.
6. Activate your card: Once you receive your card, you need to activate it by calling the number on the back or by logging in to your online account.
7. Use your card responsibly: Make sure you understand the terms and conditions of your card, including the APR, credit limit, and rewards program. Use your card responsibly by paying your balance on time and in full each month to avoid interest charges and build your credit score.

How to avoid debt on your student credit card

Getting a student credit card can be a great way to start building your credit history, but it’s important to use it responsibly to avoid accumulating debt. Here are some tips to help you avoid student credit card debt:

1. Set a budget: Determine how much money you can realistically spend each month and stick to that budget.
2. Pay your balance in full: Always pay your credit card bill in full each month to avoid interest charges and late fees.
3. Keep track of your spending: Use a budgeting app or spreadsheet to keep track of your spending and ensure you stay within your budget.
4. Use your card only for necessary expenses: Avoid using your credit card for frivolous purchases and only use it for necessary expenses such as textbooks, school supplies, and groceries.
5. Don’t use your credit card as a backup: Don’t rely on your credit card as a backup for emergencies. Instead, set up an emergency fund to cover unexpected expenses.
6. Avoid cash advances: Cash advances come with high fees and interest rates, so avoid using this feature unless it’s an absolute emergency.
7. Understand the terms and conditions: Read the fine print and understand the terms and conditions of your credit card. This includes the interest rate, fees, and other charges.

By following these tips, you can use your student credit card responsibly and avoid accumulating debt that could hurt your credit score and financial future.

Do you have to be a student to apply for a student credit card?

Yes, typically, you need to be a student to apply for a student credit card. Student credit cards are designed specifically for students who may have limited credit history or income. Therefore, the eligibility requirements for these cards often include being enrolled in a college or university or being a recent graduate. However, some issuers may also offer student credit cards to individuals who are enrolled in a trade school or vocational program. It’s important to check the specific eligibility requirements of each student credit card before applying.

Alternatives to student credit cards

There are several alternatives to student credit cards that students can consider:

1. Debit Cards: Debit cards can be a great alternative for students who are hesitant to get a credit card. They allow students to make purchases without accruing debt, as the money is deducted directly from their bank account.
2. Prepaid Cards: Prepaid cards work similarly to debit cards, but they are not linked to a bank account. Students can load money onto the card and use it to make purchases until the balance runs out.
3. Secured Credit Cards: Secured credit cards require a deposit upfront, which serves as collateral for the credit limit. This can be a good option for students who want to start building their credit but may not qualify for an unsecured credit card.
4. Authorized User: Students can also become an authorized user on a parent or guardian’s credit card. This allows them to use the card for purchases while still being under the responsibility of the primary account holder.

It’s important to research and compare the pros and cons of each alternative to determine what works best for individual financial needs and goals.

Is using a student credit card worth it?

Using a student credit card can be worth it if you use it responsibly and make payments on time. Student credit cards can help you build credit, earn rewards, and learn how to manage your finances. However, it’s important to use the card wisely and avoid overspending or accruing debt. Before applying for a student credit card, consider your financial situation and whether you can afford to make payments on time. Additionally, it may be helpful to compare different credit card options and choose one with low fees and interest rates. Overall, a student credit card can be a valuable tool if used responsibly, but it’s important to be cautious and avoid unnecessary debt.

What happens to my student credit card once I graduate?

When you graduate from college, your student credit card will continue to function as a regular credit card. However, some issuers may offer incentives or rewards for students who graduate, such as a credit limit increase or a lower interest rate. Additionally, you may be eligible to apply for other credit cards with more robust rewards programs or features that better suit your post-graduation lifestyle. It’s essential to continue using credit responsibly after graduation and avoid taking on more debt than you can afford to pay back.

After graduating, you have several options with your student credit card. You can choose to continue using it as a regular credit card, but be aware that the terms and benefits may change after graduation. Some student credit cards may convert to regular credit cards with different terms, rewards, and interest rates.

Another option is to close the account, especially if the credit card has an annual fee or if you don’t plan on using it anymore. However, closing a credit card can affect your credit score, so make sure to consider the potential impact before making a decision.

You may also choose to keep the account open but not use it frequently. This can help you maintain a good credit score by keeping your credit utilization ratio low and showing a long credit history.

Lastly, if you have multiple credit cards, it’s important to prioritize which ones you want to keep open and which ones you want to close. Keep in mind that having too many open credit accounts can negatively impact your credit score, so choose wisely.

How many credit cards should I get as a student?

There is no fixed number of credit cards that a college student should have. In fact, it’s generally recommended that students start with one credit card to build their credit history and learn responsible credit use. Having too many credit cards can lead to overspending, missed payments, and a negative impact on credit score. As a general rule, it’s important to only apply for credit cards that you can manage responsibly, regardless of the number.

How are student credit cards different from regular credit cards?

Student credit cards are designed for students who are new to credit and have a limited credit history. As such, they often have more relaxed requirements for approval and offer lower credit limits. Student credit cards also typically offer rewards and benefits that are geared towards students, such as cash back on purchases at bookstores and restaurants.

Regular credit cards, on the other hand, are available to anyone who meets the credit requirements. They often offer higher credit limits and a wider range of rewards and benefits that are not specifically tailored towards students. Regular credit cards may also have stricter requirements for approval, including a higher credit score and a longer credit history.

Do I have to be 18 to apply for a student credit card?

To apply for a student credit card, you typically have to be at least 18 years old, which is the legal age to enter into a binding contract in most states. However, some issuers may require applicants to be at least 19 or 21 years old, so it’s best to check with the specific issuer’s eligibility requirements before applying. Additionally, most issuers will require applicants to be enrolled in an accredited college or university.

Do I need a job for a student credit card?

While having a job can increase your chances of getting approved for a student credit card, it is not always necessary. Most credit card issuers require applicants to have a source of income, but this can include financial aid, scholarships, or allowances from parents or guardians. You may be required to provide proof of income and/or employment, such as a pay stub or offer letter. However, some credit card issuers may approve student credit card applications based on the applicant’s credit history and credit score alone, without requiring proof of income. It’s important to research the specific requirements of each credit card issuer before applying for a student credit card.

FAQs about student credit cards