My son applied for one of the below recommended student credit card and is now earning Reward points with his student credit card. If you are wondering whether you should get a student credit card while in college or which credit card is best for a college student, wonder no more. I discuss here why you should get a student credit card, and the best student credit cards available today.
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Let me start by saying yes, you should definitely have 1-2 credit cards while in College. Not only will that make your life so much easier when buying pizza, books, movie tickets, etc., it will also help you build a good credit history. While in college, you may not be thinking about this but with a student credit card you can start building credit history that will put you on the path to financial freedom. This means not only receiving offers for more robust Rewards or Cash Back credit cards but also qualifying for auto loans, and mortgages after graduation and some work history.
My advice for building credit history responsibly is to get a student credit card and pay the full balance monthly. This will help minimize interest expenses, and help you to learn how to manage credit. In addition, get added to a parent credit card as an authorized user, preferably to a credit card with at least a $10k credit limit and with no foreign transaction fees that can also come in handy during any study abroad programs (once life returns to normal). Additional card users are generally reported to the bureau by the card-issuing banks and help in building credit history. Keep in mind though that the primary cardholder remains liable for making sure that the payments are made on time and that the card does not become delinquent.
What a lot of students may not know is that credit card companies usually offer student credit cards (aka college student cards) with fairly easy approval, low fees, better rewards, and terms than comparable non-student cards to establish a profitable long-term relationship with students who are typically young and have above-average earning potential. As long as you do not have any delinquencies on your credit report (it is fine to have limited or no credit history) you should consider getting a student credit card.
Just as I had alluded to at the beginning of the article, my son applied for the Discover IT Student Card during his first semester in college. He showed the income from his part time library job on the card application and was able to get approved with a $500 limit (which is fairly typical as a starting credit limit with student cards). He did not have any credit history prior to his applying. Just sharing this as an example, individual results may vary.
What do I need to know before applying for a student card?
Let’s review some basic qualifications needed to successfully apply for a student credit card.
You’ll need to be at least 18 years old to apply for any credit card including the student credit cards. Another standard requirement is that you need to be a US citizen or resident.
If you’re under 21, you’ll need an independent income that the credit card company can verify. Generally, you can list your income from a part-time job (including from any work study jobs at campus).
And if you’re 21 or older, you’re allowed to report shared household income as your own on a credit application, as long as you have a reasonable expectation of access to the money such as funds that are regularly deposited into your bank account. Keep in mind though that borrowed money, including student loans, does not count as income.
For the most part, most credit card companies require you to input your school information on the application, so you should be a student to be eligible for the Student card. There is one exception though: The Journey® Student Rewards from Capital One® which does not ask for proof of college enrollment on the application. To qualify for the student card, most card issuers require that you be enrolled full-time or part-time in a two- or four- year college – that means universities and community colleges. Some issuers even allow attendance at trade schools to be considered as a student.
If you’re over 18 years of age, but your income is too low or if you cannot qualify for the Student Cards, you can still build history through Secured Cards. Please see the link here on the options available to you.
Best student cards to help you build credit history
Now that you are ready to apply for the student credit card, which cards should you consider? First check your credit score for free through sites like Credit Karma. Second, based on my industry expertise, and reviews of the Student Card offers from the various leading credit card sites, I compiled the below simplified list of student cards for you to consider. The primary factors considered in the review are the average Credit Limits assigned, Rewards Program offered, Annual Fees (if any), Foreign Transaction Fees charged, availability of introductory bonus, and finally the required credit score. In addition, the cards below were short listed because of their simplicity to use, transparency, and no requirements for security deposits or prior account relationship with the issuing Bank as a pre-requisite for applying.
| Discover It® Student Cash Back Card | Journey® Student Credit Card from Capital One® | Bank of America® Cash Rewards for Students | Chase Freedom® Student credit card | Upgrade Cash Rewards Visa® | |
 |  |  |  |  | |
| Min Credit Limit | $500 | $300 | $500 | $500 | Varies |
| Credit Score Required | No Credit History | Fair/Limited Credit History | Limited Credit History (620-659) | Good to Excellent (670-850) | Average Credit Score (600+) |
| Annual Fee | $0 | $0 | $0 | $0 | $0 |
| Foreign Transaction Fee | 0% | 0% | 3% | 3% | 0% |
| Introductory Offer | Cash Back Match | Earn $5 per month for 12 months on select streaming subscriptions when you pay on time. | $200 with $1k purchase | $50 with first purchase | NA |
| Intro APR | 0% for 6 for Purchases, 10.99% for 6 mo for Balance Transfers | NA | 0% for 12 mo for Purchases and Balance Transfers | NA | NA |
| Standard APR (as of 10/1/22) | 15.99% – 24.99% | 28.49% | 16.99% – 26.99% | 17.24% | 14.99% – 29.99% |
| Rewards | 5% cash back on rotating categories (gas, dining, Amazon up to $1500/qtr). $20 Good Grade Rewards for up to 5 years | Earn 1% cash back on all your purchases. Pay on time to boost your cash back to a total of 1.25% for that month. | 3% Category of Choice (gas, online, dining), 2% grocery & 1% all else | 1% on all purchases. $20 Good Grade Reward for up to 5 years. | 1.5% on all purchases |
| Overall Assessment | Although Discover cards are not accepted widely as Visa/Mastercard or Amex cards, this card is ideal to help build credit, provides access to Credit scores while enjoying cash back rewards. | Although the APR is on the high side, this is a good starter card with no foreign transaction fee, $60 streaming subscription credit, access to Credit Scores with modest cash back earn. | A good card option if you want a cash-back card that you don’t need to replace when you graduate from college. The card’s rewards earn rates (especially if you are also a Bank of America checking or savings account holder) and flexibility with cash back categories are impressive. | A simple, inexpensive card that offers a flat cash back rate. The quoted APR is lower than the average APR for a student card. You can only apply though the Chase branches at this time which we feel is unnecessarily burdensome compared to the online applications from the other major credit card issuers. The card comes with credit limit increase review, as well as Lyft and Door Dash offers. | Upgrade, Inc. is an American fintech, headquartered in San Francisco, founded in 2016 by former CEO and colleagues of Lending Club. Since 2017, Upgrade has made over $3 billion in loans and their credit cards are industry differentiating in the average to good credit score spectrum. |
| Our Rating* | A- | A- | A- | B+ | A- |
If you are a foreign student studying at a US institution, you may consider applying for the Deserve® EDU Mastercard for Students card which does not require a social security number (SSN) to apply for the student card. The card comes with free Amazon Prime for a year, 1% cash back on all purchases and a $600 cell phone protection insurance.
As mentioned above, student credit cards are a great way to build credit provided you are responsibly managing credit, i.e. spending carefully, paying your bills on time, and monitoring your credit score monthly. Any cashback that you may earn is secondary to using your credit card responsibly. Keep in mind that it is easier to build credit than to repair one. If you feel that you are unsure whether you will be able to do that just yet, suggest you get a secured card and follow the guidelines listed here to build your credit that way.
In addition, enroll in this free tool from Experian called Experian Boost ™ to help build your credit history faster. Experian Boost* is completely free and can instantly raise your credit scores.
What happens to your student card when you graduate?
As long as you have been using your card responsibly and paying your bill on time every month, many credit card issuers will automatically review your card history for increases in credit limit. Similarly, when you graduate, many credit card issuers will upgrade your card automatically. If they don’t, you can always call and ask. Just make sure to keep paying your credit card bill on time.
To learn about student loan financing or refinancing options from credible.com, please click here.
Also, please see offers from our Affiliate partners for college students.
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*Rating Key:
A/A-: Industry Leading or Highly Recommend
B+: Recommend enthusiastically
B: Can be suitable to apply for some prospective customers
Sources used: Issuer websites, nerdwallet.com, wallethub.com, businessinsider.com, consumerfinance.gov, and federalreserve.gov.
*Experian Boost applies to many of the most widely used score models used by lenders. Results may vary. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
