Compare the Best Credit Cards for Students

What Is a Student Credit Card?

Student credit cards are a unique type of card designed specifically for college students. Student cards are an ideal option for those that are over the age of 18 and new to credit. Because student cards are similar to other credit cards, they sometimes offer rewards points, interest-free periods, and introductory bonuses. Despite their similarities to different types of credit cards, however, student cards differ in a few key areas.

How Does a Student Card Differ from Other Credit Cards?

Because student cards are designed with the college student in mind, they typically have lower requirements when it comes to credit score and credit history. Most college students have minimal experience with credit cards – or credit in general. That’s because most credit card issuers require cardholders to be at least 18 years old.

Student credit cards, therefore, need to be more lenient on their credit requirements. This makes them an excellent option for those who have never had a credit card before. Using their credit card responsibly, students can build up their credit history and credit score and move up to a better rewards credit card when they graduate.

Student cards usually have lower credit limits than other types of credit cards. This is due to the lesser credit restrictions. Lower credit limits isn’t necessarily a bad thing, however, as it can help the cardholder learn the ropes of credit and practice keeping their credit utilization ratio low. Keeping that ratio below 30% is essential to building credit.

Despite the lower limits, however, student cards offer more than enough financial might to purchase textbooks, dorm snacks, or anything else that college kids need to survive campus life.

What To Expect from a Student Card

Here’s what should you look for when shopping around for a new card:

Rewards Programs

While not common, there are plenty of good student rewards cards on the market. Many student credit cards feature lesser benefits in comparison to general rewards credit cards, but that’s not always the case. As with all credit cards, pay attention to the qualifying categories that reward points for purchases

Academic Incentives

This is a perk unique to credit cards for students. Some cards offer cardholders account statement credits if their grades meet a certain threshold. That means that with the right credit card in your wallet, you may be entitled to a credit on your balance for merely keeping up good grades.

No Annual Fee

Generally speaking, signing up for a credit card without an annual fee makes financial sense. This rule doesn’t apply, though, if the benefits that you earn while using the credit card are higher than the cost you’re paying each year.

Debt Forgiveness

When learning how to use credit cards and navigate debt, especially at a young age, it’s essential to look for a card that offers debt forgiveness, especially at a young age. You’ll want a card with debt forgiveness to prevent your credit score from being negatively affected.

Secured Cards: The Perfect Student Credit Cards for Bad Credit

Students that don’t qualify for a student card can also apply for a secured credit card. Secured cards differ from other credit cards in that they require a security deposit to open. This deposit acts as both the collateral and the line of credit. Using these types of cards is a great way to boost your credit score and quickly move on to a student or other type of credit card.

The Best Secured Credit Cards for 2022

Other Options for Students: Cards with a Cosigner

For students seeking a credit card that does not require a cash deposit, there are options. One such option is to become an authorized user on their parent’s credit card accounts. This allows them to build their credit off of the good credit habits of the primary cardholder. Another option is to get a credit card with a cosigner. Cosigners help get student credit cards with no credit – or even non-student credit cards.

What Is a Cosigner?

A cosigner is a person who signs a credit card application with someone and agrees to take on the burden of their debt, should they not be able to make their payments. A cosigner is – in essence – a guarantor of the credit card application, ensuring that lenders don’t have as much to worry about when it comes to a risky applicant – such as a student.

Cosigners make student credit card applicants much more attractive. They have the added benefit of the opening up more enticing credit card offers to those who would normally not have qualified. These attractive offers can include rewards credit cards, such as cashback or travel rewards cards, which can help students save money on everyday purchases or even visits back home during the holidays.

Become an Authorized User

An authorized user is a secondary user for a credit card that receives a card with their own name on it. The purchases they make with this card reflect on the same statement as the primary account holder and shares the same credit limit.

Authorized users can build a positive credit history with no credit history needed. An authorized user’s credit score may improve over time if they and the primary account holder show responsible spending habits. Keep in mind that not all issuers give information about authorized users to the three major credit bureaus though, so if you are hoping to help someone gain their financial footing, check your account information, or with your credit card issuer first. before adding another user.

How to Add an Authorized User to Your Credit Card

Student Credit Card FAQs

There are plenty of questions that pop up about college credit cards. Here are some of the most commonly asked questions:

What information do you need to apply for a student credit card?

Student cards are similar to other credit cards. These cards differ in that they are meant for college students. Because of this, student cards require specific information. Some of this information is the same as what all credit card applications require:
- A Social Security Number is required whenever you apply for a credit card. Despite this, some applications have no impact to your credit score.
- Proof of enrollment is another requirement for many student cards.
- Income or savings information might be required.
- Some issuers require a student card applicant to have a student loan with the bank.

How old do you need to be to get a student credit card?

Students are required to be 18 years or older to get a student card.

Are student credit cards a good choice?

Yes. Student cards are an excellent option for establishing a good credit history. Student versions of credit cards offer lower interest rates than secured cards. These varieties of cards also provide rewards, cash back, and other perks.

What are some of the most common features of a college credit card?

Most credit cards come with an easy to use app, which allows you to track your spending, set automatic payments, or even check your credit score in minutes. Other cards offer good grade discounts, free subscriptions (like a free year of Amazon Prime student), or other on-campus perks.

Do student cards charge a foreign transaction fee?

International transaction fees are charges for using your credit card for purchases outside the United States. These charges can be in foreign countries or even non-U.S. websites. Each bank charges a different fee, with some having no foreign transaction fees at all.

The Best Credit Cards for College Students

Trying to find the best credit cards for students? BestCards has comprehensive and impartial reviews of the top credit cards for college students on the market today. Scan our hundreds of reviews, use our comparison tool and take advantage of our extensive credit card resources and advice. Ready to get started? Let’s find your best card today!

Compare the Best Credit Cards for Students

What Is a Student Credit Card?

How Does a Student Card Differ from Other Credit Cards?