Building credit as a college student is a vital step in establishing a strong financial foundation. By responsibly managing a credit card during your college years, you can set yourself up for future success, whether you’re applying for a car loan, mortgage, or your first apartment. But with so many options available, how do you choose the right one?
This guide highlights the best credit cards for college students, catering to a range of needs from those with established credit to first-time credit card users. Whether you’re looking for valuable cash-back rewards, no annual fees, or study-abroad benefits, you’ll find a credit card that fits your needs.
Best Credit Cards for College Students
| Credit Card | Best For | Rewards Rate | Annual Fee | Why It’s Great |
|---|---|---|---|---|
| Chase Freedom Unlimited® | Students with Established Credit | 5% on travel purchased through Chase Travel, 3% on drugstores and dining, 1.5% on all other purchases | $0 | Perfect for students with some credit history, offering versatile rewards across multiple categories. |
| Capital One SavorOne Student Cash Rewards | Most College Students | 10% on Uber and Uber Eats, 3% on dining, entertainment, streaming, groceries, 1% on all other purchases | $0 | A well-rounded card with generous rewards in popular spending categories. |
| Capital One Quicksilver Student Cash Rewards | Studying Abroad | 1.5% cash back on all purchases | $0 | No foreign transaction fees, making it ideal for students studying abroad. |
| Citi Double Cash® | Flat-Rate Cash Back | 2% on every purchase (1% when you buy, 1% when you pay your bill), 5% on hotel, car rentals, attractions through Citi Travel | $0 | A straightforward card for students who prefer a consistent cash-back rate on all purchases. |
| Discover it Student Cash Back | Students with Good Grades | 5% back on first $1,500 in rotating categories, 1% on all other purchases | $0 | Rewards responsible students with cash-back incentives and a Good Grades reward program. |
How I Picked the Best Credit Cards for College Students
When selecting the best credit cards for college students, I considered several factors essential to young adults:
- Ease of Approval: Cards designed specifically for students often require little to no credit history.
- Student-Focused Rewards: Many of these cards offer rewards tailored to student spending habits, such as dining, groceries, and travel.
- No Annual Fees: To keep costs low for students, I focused on cards that don’t charge an annual fee.
- No Foreign Transaction Fees: For students studying abroad, I prioritized cards that don’t charge extra fees for international purchases.
How Do Student Credit Cards Work?
Student credit cards function similarly to regular credit cards but are designed with first-time users in mind. They are generally easier to qualify for and may come with lower credit limits, making them a safe option for those just beginning their credit journey. Here’s how they work:
- Credit Limit: This is the maximum amount you can borrow each month. It’s crucial to use your card responsibly and pay off your balance in full each month to avoid interest charges.
- Rewards: Student credit cards often offer rewards like cash back or points, which can be redeemed for statement credits, travel, or other perks.
- Building Credit: By using your credit card responsibly, you can build a strong credit history, which will be beneficial when you apply for loans or other financial products in the future.
Tips for Building Credit as a Student
- Start Small: Choose a card with no annual fee and use it for regular, small purchases that you can pay off in full each month.
- Monitor Your Credit: Regularly check your credit report to ensure accuracy and track your progress.
- Understand Credit Terms: Familiarize yourself with key terms such as credit limit, APR, and credit utilization.
Tips for Parents About Student Credit Cards
If you’re a parent helping your child get their first credit card, consider these tips:
- Authorized User: Add your child as an authorized user to help them build credit history without opening their own account.
- Monitor Spending: Teach your child to use credit responsibly by monitoring their spending and ensuring they pay off their balance each month.
FAQs About Student Credit Cards
- Do I need a job to qualify for a student credit card?
- While having a job helps, part-time jobs, internships, or freelance work can also qualify as income when applying for a student credit card.
- How old do I need to be to qualify for a student credit card?
- You must be 18 years or older, a U.S. citizen, and have a documentable income. If you’re under 21 and lack income, a co-signer may be needed.
- What happens if I get denied for a credit card?
- If denied, review the reason provided by the issuer. You may be able to appeal the decision through a reconsideration line or consider alternative cards designed for those with limited credit history.
- What happens to my student card after I graduate?
- Issuers typically reclassify your card to a non-student version, allowing you to keep the account open and continue building credit.
