Navigating the world of credit cards as a student can be a daunting task. With a plethora of options available, choosing the right card can seem overwhelming. However, using credit cards responsibly can be a valuable tool for building credit history, managing finances, and earning rewards.
Understanding Student Credit Cards
Student credit cards are designed specifically for college students and recent graduates who may have limited or no credit history. They typically offer lower credit limits and fees than standard credit cards, making them more manageable for students. These cards often provide flexibility in rewards programs, making them appealing for students who want to earn cash back, travel points, or other benefits.
Benefits of Using Student Credit Cards
Student credit cards offer several advantages for college students:
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Building Credit History: Responsible use of a credit card can help students establish a positive credit history, which is crucial for securing future loans, such as mortgages or car loans.
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Managing Finances: Credit cards can serve as a convenient payment method, allowing students to track and manage their expenses effectively.
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Earning Rewards: Many student credit cards offer cash back, travel points, or other rewards programs, providing students with opportunities to earn while making purchases.
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Peace of Mind: Student credit cards often have additional benefits like purchase protection, extended warranties, and rental car insurance, offering peace of mind for students.
Choosing the Right Student Credit Card
When selecting a student credit card, consider the following factors:
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Rewards Program: Choose a card that aligns with your spending habits and preferences. Consider cash back cards for everyday purchases, travel cards for frequent travelers, or cards with bonus categories for specific purchases.
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Interest Rates: While student credit cards typically have introductory 0% APR periods, it’s important to understand the regular interest rates and avoid carrying a balance.
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Annual Fees: Opt for cards with no annual fees to minimize upfront costs.
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Credit Limits and Fees: Consider your credit history and spending habits when selecting a credit limit. Review any associated fees, such as late payment fees or over-the-limit fees.
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Additional Benefits: Evaluate additional perks like purchase protection, extended warranties, and rental car insurance offered by different cards.
Top Recommended Student Credit Cards
Here are some of the top-rated student credit cards in 2023:
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Discover it® Student Cash Back: This card offers 1% cash back on all purchases and 5% cash back on rotating categories each quarter. It also has a generous welcome bonus and a cashback match on the first year’s worth of eligible purchases.
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Capital One SavorOne Student Cash Rewards Credit Card: This card is ideal for students who enjoy eating out and shopping at grocery stores. It offers unlimited 3% cash back on dining and entertainment, plus 1% cash back on all other purchases.
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Bank of America® Travel Rewards credit card for Students: This card is perfect for students who want to earn travel rewards. It offers 1.5% cash back on all purchases and the ability to redeem it for travel rewards or statement credits.
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Capital One Quicksilver Student Cash Rewards Credit Card: This card is a great option for students who want a flat-rate cash back card with no annual fee. It offers unlimited 1.5% cash back on all purchases.
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Petal® 2 “Cash Back, No Fees” Visa® Credit Card: This card is a good choice for students with limited or no credit history. It doesn’t require a credit check and offers up to 1.5% cash back on purchases.
Using Student Credit Cards Responsibly
Using student credit cards responsibly is essential for building a strong credit history and maximizing their benefits. Here are some tips for responsible credit card usage:
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Only spend what you can afford to repay: Avoid using credit cards to finance unnecessary purchases or overspending.
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Pay your balance in full each month: This helps avoid interest charges and builds a favorable credit history.
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Set up automatic payments: Automate your credit card payments to ensure timely payments and avoid late fees.
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Monitor your spending: Track your purchases regularly to stay on top of your spending habits.
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Educate yourself about credit: Learn about credit scores, responsible credit usage, and the potential consequences of credit card misuse.
Student credit cards can be valuable tools for navigating the financial world while in college. By choosing the right card, using it responsibly, and building a strong credit history, students can set themselves up for financial success in the future.
Discover it® Student Cash Back – Best Credit Cards for Students
- Rewards on All Purchases
- Bonus Offer: Yes
- Intro APR on Purchases: 0% (6 months)
- Regular APR: 19.49% Variable
- Annual Fee: $0
| • No annual fee | • Statement credit: good grades |
| • Up to 5% cash-back | • Generous first-year bonus |
Highlights: Start building your credit history with this card that pays generous cash-back on rotating categories. If you are on a tight budget, the cash-back you earn will be a welcomed gift. You can earn Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. Plus, Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched. .
Need a new laptop or wondering how you’re going to afford textbooks? If you are planning a big purchase and want to pay it off interest-free over time, this card offers an intro APR of 0% for 6 months.
Good Grades Rewards: Spending time at the library pays with this card. Earn up to $100 total in a statement credit through this program by earning a $20 statement credit every school year you have a GPA at 3.0 or higher (up to 5 years total).
Nice to have: Get a Credit Scorecard that includes your FICO® Credit Score for free. Monitor your credit building progress easily with the valuable tools on this card. You won’t be punished with a late fee on your first late payment.
Extra credit: Discover makes your first credit card easy. Redeem your rewards for cash in any amount, at any time and your cash back never expires. Use your rewards instantly at Amazon.com checkout too. Got a question? 100% U.S. based customer service is available 24/7. If you are studying abroad, there’s no foreign transaction fee.
Final grade: This is an amazing card for college students. There’s a robust line-up of features and perks that Discover created just for you.
Discover it® Student chrome – Best Credit Cards for Students
- Rewards on All Purchases
- Bonus Offer: Yes
- Intro APR on Purchases: 0% (6 months)
- Regular APR: 19.49% Variable
- Annual Fee: $0
| • High cash rewards at gas stations and restaurants | • Statement credit: good grades |
| • No annual fee | • Free FICO® Credit Score |
Highlights: This is a great choice if you drive or eat out often. Discover will reward you with Earn 2% cash back at Gas stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.. That means extra cash in your pocket to spend any way you want. Plus, Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched.
Charge your textbooks at the school bookstore and you’ll automatically earn cash back. If you want to pay off your purchase over time with no interest, take advantage of the intro APR of 0% for 6 months, then 19.49% Variable.
Good Grades Rewards: Earn up to $100 total in a statement credit through this program by earning a $20 statement credit every school year you have a GPA at 3.0 or higher (up to 5 years total).
Extra credit: If you misplace your credit card, freeze your account in seconds with an on/off switch on the mobile app and website. No late fee on first late payment. No foreign transaction fees. Free FICO® Credit Score. $0 Fraud Liability. Redeem your rewards for cash in any amount, at any time and your cash back never expires. The list of features seems endless on both Discover student cards.
Final grade: This top card offers many of the same valuable benefits on Discover it® Student Cash Back . Both Discover cards are winners in the student credit card category. If you spend on gas and dining out, this may be the better choice for you.
Journey® Student Rewards from Capital One® – Best credit cards for college students.
| • No annual fee | • No foreign transaction fee |
This no-frills card offers 1% cash back on all purchases; 0.25% cash back bonus on the cash back you earn each month you pay on time.
Take note: This card comes with a steep 26.99% (variable) interest rate. That is almost double the base rate of the Discover cards. For students who might not pay their bill in full each month, the Discover cards offer better terms.
Final grade: The high interest rate is a drawback. The rewards rate is lower than the top rate on other student cards. College students can earn higher cash-back on gas, restaurants and category spending with one of the Discover student cards. There’s no first-year sign up bonus (like you can get with the Discover cards), no introductory 0% interest period and no extra benefits like free credit score, good grades bonus, or forgiveness on first late payment fee. Discover gives college students more robust features on their cards.