A student credit card is designed to help individuals in college or university start building credit. It’s often a more accessible option for students with limited or no credit history. These credit cards typically come with lower credit limits and some added perks like cash back on purchases or rewards for good academic performance.
But don’t expect the world – you won’t be approved for a luxury card just yet. The key here is getting your foot in the door and showing that you can handle credit responsibly.
How to Use Credit Cards Responsibly
Using a student credit card the right way is crucial if you want to avoid sinking into debt. First, always make sure you pay your balance in full every month. If you carry a balance, you’ll be hit with interest charges, and they can pile up quickly. Second, try to use only a small portion of your available credit limit to maintain a healthy credit utilization ratio.
Keep an eye on your spending and don’t fall into the trap of buying things just because you can. And lastly, pay your bills on time. One missed payment can seriously hurt your credit score.
Best Student Credit Cards
Here are some of the best credit cards for students looking to build credit and earn rewards with minimal hassle:
Discover it® Student Cash Back
This card is an excellent option if you want to earn cash back on everyday spending. You’ll get 5% cash back in rotating categories each quarter (like grocery stores, restaurants, or gas stations), and 1% on all other purchases. Plus, Discover will match all the cash back you’ve earned at the end of your first year, with no minimum spending required. The card also offers a 0% introductory APR on purchases for the first 6 months, making it a solid choice for new cardholders.
Key Benefits:
- No annual fee
- 0% Intro APR for 6 months on purchases
- Unlimited 1% cash back on non-category purchases
- No foreign transaction fees
Discover it® Student Chrome
If you’re not into rotating categories, the Discover it® Student Chrome is a straightforward option. This card offers 2% cash back on dining and gas, up to $1,000 in combined purchases each quarter, and unlimited 1% on all other purchases. The best part? Discover will match all the cash back you’ve earned at the end of your first year.
Bank of America® Travel Rewards Credit Card for Students
This card is perfect for students who want to earn travel rewards. You’ll earn 1.5 points for every dollar you spend on purchases, with no expiration on points. Plus, you can earn 25,000 online bonus points if you make at least $1,000 in purchases in the first 90 days, which can be redeemed for $250 toward travel purchases. There’s no annual fee or foreign transaction fees, making it ideal credit card for students looking to travel without extra costs.
Key Benefits:
- No annual fee
- 0% Intro APR on purchases for 15 billing cycles
- 1.5 points per dollar on all purchases
- No foreign transaction fees
Capital One Savor Student Cash Rewards Credit Card
This card is perfect for students who enjoy dining out or entertainment. You’ll earn 3% cash back on dining, entertainment, and popular streaming services, plus 1% on all other purchases. There’s also a $50 early spend bonus when you spend $100 in the first 3 months. Additionally, you’ll earn 5% cash back on hotels and rental cars booked through Capital One Travel.
Key Benefits:
- No annual fee
- 3% cash back on dining, entertainment, and streaming services
- $50 bonus when you spend $100 in the first 3 months
- 5% cash back on hotels and rental cars booked through Capital One Travel
Capital One Quicksilver Student Cash Rewards Credit Card
If you prefer a no-fuss approach, the Capital One Quicksilver Student Cash Rewards Credit Card offers 1.5% cash back on every purchase, every day. You’ll also get a $50 early spend bonus when you spend $100 in the first 3 months. This card has no annual fee and no foreign transaction fees, making it an easy, straightforward option for students.
Key Benefits:
- No annual fee
- 1.5% cash back on all purchases
- $50 bonus when you spend $100 in the first 3 months
- 5% cash back on hotels and rental cars booked through Capital One Travel
Pros and Cons
When choosing a student credit card, you’ll want to weigh the pros and cons. These cards can be a great way to start building your credit history, but they aren’t without their drawbacks. Let’s break it down:
Pros:
- Build Credit History: Regular use can help you establish a solid credit score, which will come in handy later when you need to borrow for a car or house.
- Rewards: Some cards offer cash back or travel rewards, which can be a nice bonus for doing things you’d be doing anyway.
- No Annual Fees: Most student cards don’t charge an annual fee, so you don’t need to worry about paying just to have the card.
Cons:
- High Interest Rates: If you’re not careful, interest rates on student cards can be steep. It’s easy to rack up debt if you’re not paying attention.
- Low Credit Limits: These cards usually come with lower credit limits, which can make it harder to make larger purchases or cover an emergency.
- Limited Perks: Some cards have rewards or cashback, but they don’t compare to the perks you’d get from premium cards.
Considerations for Comparing Cards
Choosing the right credit card goes beyond just looking at the rewards and interest rates. You’ll also want to think about things like how easily you can manage the account and whether you’ll be able to hit the rewards thresholds. Consider these factors:
- Credit Limit: Is it high enough for your needs?
- Fees: Are there any hidden fees for things like foreign transactions or late payments?
- Rewards: Do the rewards align with your spending habits? A travel rewards card won’t be useful if you’re mostly spending on textbooks and coffee.
Importance of Building Credit as a Student
As a student, you might think that building credit is something to worry about down the road. But starting now can put you ahead of the game. A good credit score will open doors when you apply for loans, rent an apartment, or even land a job. The sooner you establish your credit, the easier it will be to get better financial offers in the future.
Can Students Get Credit Cards Without Credit?
Yes, you can still get a credit card as a student without a credit history. Student credit cards are specifically designed to help you get started with little or no credit. You may need to show proof of income (like a part-time job) and be prepared for a relatively low credit limit, but these cards are a great first step. Just remember, responsible use is key.
What Types of Cards Are Available?
Student credit cards usually come in one of two flavors: cashback or rewards cards. Cashback cards give you a percentage of what you spend back in the form of cash, which can be applied to your balance. Rewards cards, on the other hand, allow you to accumulate points or miles that can be redeemed for things like travel, merchandise, or statement credits. Some cards may even offer a combination of both.
Alternatives to Getting a Student Credit Card
If you’re not quite ready for a student credit card or can’t qualify for one just yet, there are a few other options to help you start building credit:
- Obtain Authorized User Status Get added as an authorized user on someone else’s credit card (preferably someone with good credit). You’ll be able to use the card, and their payment history will reflect on your credit report. Just make sure they don’t miss any payments or max out their card.
- Apply for a Secured Credit Card A secured credit card requires you to put down a deposit, which serves as your credit limit. This type of card is often easier to get approved for and can help you build credit, though it might not offer the same rewards as a traditional student card. If you pay your balance in full and on time, you’ll eventually graduate to a regular, unsecured card.
