Best Student Credit Cards This Month
Discover it® Student Cash Back
Why this is one of the best student credit cards: The Discover it Student Cash Back Card is good for students who want to earn cash back on everyday purchases. Students have a chance to earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. The card offers unlimited 1% cash back on all other purchases. Discover will match all the cash back you’ve earned after your first year. There’s no annual fee and no late fee the first time you pay late. See our full review.
Discover it® Student chrome
Why this is one of the best student credit cards: This card is designed for students who primarily spend on gas and dining. Cardmembers earn 2% cash back at gas stations and restaurants, on up to $1,000 in combined purchases each quarter. All other purchases earn unlimited 1% cash back. Discover will match all the cash back you’ve earned after your first year. See our full review.
Capital One Quicksilver Student Cash Rewards Credit Card
Why this is one of the best student credit cards: The Capital One Quicksilver Student Cash Rewards Credit Card earns 1.5% cash back on all purchases with no limit, which makes earning rewards easy to do. With no foreign transaction fee, this card could be useful for students studying abroad. Cardholders pay no annual fee, and rewards won’t expire as long as the account is open. See our full review.
Capital One SavorOne Student Cash Rewards Credit Card
Why this is one of the best student credit cards: With the Capital One SavorOne Student Cash Rewards Credit Card, cardholders earn unlimited 3% cash back on dining, entertainment, popular streaming services and eligible grocery purchases. Plus, earn 8% cash back on live event tickets at Vivid Seats through January 2023. All other purchases earn 1% cash back. Build your credit with responsible card usage and be automatically considered for a higher credit line in as little as six months. This card doesn’t charge an annual fee or foreign transaction fees. See our full review.
Chase Freedom® Student credit card
Why this is one of the best student credit cards: Cardholders earn 1% cash back on every purchase and won’t need to track complicated spending categories. The card also delivers 4% back on Lyft ride-hailing purchases through March 2022. See our full review.
Journey Student Rewards from Capital One
Why this is one of the best student credit cards: This card offers unlimited 1% cash back on all purchases, which you could increase to 1.25% cash back when you pay your bill on time each month. This card is designed for students who are just beginning to build credit. There’s no annual fee and no foreign transaction fee for this card. See our full review.
Bank of America® Cash Rewards Credit Card for Students
Why this is one of the best student credit cards: This card offers students flexibility with earning rewards, offering 3% cash back on a choice of gas, online shopping, dining, travel, drugstores, or home improvement and furnishings. Purchases at grocery stores and wholesale clubs earn 2% cash back, and all other purchases earn 1% back. The 3% and 2% cash back rewards apply to the first $2,500 in combined card purchases each quarter; thereafter, you’ll earn 1% back until the next quarter. Cardholders do not pay an annual fee. See our full review.
Bank of America® Travel Rewards Credit Card for Students
Why this is one of the best student credit cards: Students can earn 1.5 points per dollar spent on all purchases with no caps. You can redeem points for statement credits toward flights, hotels, rental cars, vacation packages and other travel expenses, and blackout dates or restrictions do not apply. If you make at least $1,000 in purchases within the first 90 days of opening an account, you can earn 25,000 bonus points. The card charges neither an annual fee nor a foreign transaction fee. See our full review.
What Should You Know About Getting a First Credit Card?
First and foremost, make sure you’re ready for the responsibility if you want to get a credit card and you’re in college. Cards are a great way to build credit, but you will need to keep balances low and pay bills in full and on time every month.
Look at options that require little to no credit history, including student and secured credit cards. Evaluating APRs, security deposits, annual fees and rewards programs can help you whittle down your choices.
Seek credit cards that offer prequalification, and don’t apply for too many at once. Your applications will trigger hard inquiries that can hurt your credit.
For approval, you may need to verify your income and provide proof of enrollment, plus the name of your college or university, state and city.
What Are the Benefits of Having a Credit Card as a Student?
- Building your credit. Getting a credit card in college can help you begin to learn good credit habits and graduate with some positive credit history. That head start could allow you to rent an apartment, make major life purchases and transition to financial independence more easily.
- Earning rewards. Issuers may offer miles, points or cash back rewards for every dollar you spend to enhance the value of your card and encourage you to use it. Check program rules, but rewards can usually be redeemed for travel and merchandise, as well as gift cards and statement credits.
- Protecting against credit card fraud and theft. If a thief steals your credit card or your credit card number and uses it before you report the card missing, your liability is limited to $50. Many credit card companies offer zero liability policies and will not hold you responsible for any unauthorized charges, according to the Consumer Financial Protection Bureau.
How Can You Compare Student Credit Cards?
Consider these questions as you compare student credit cards to help you choose the right one.
- Does the card provide your must-have features? Look for a student credit card that charges no annual fee and reports to the three major credit bureaus. Check for no foreign transaction fees if you plan to travel or study abroad, plus a low interest rate if you expect to carry a card balance.
- Do you have a chance to earn rewards or a sign-up bonus? Rewards can be incentives to use your student credit card responsibly. If you want this type of card, make sure you can earn rewards on the types of purchases you routinely make: gas, groceries, restaurant meals. Otherwise, look for a card that offers a flat rate on all purchases.
- What happens to the card when you graduate? Some issuers will transfer your student account to a standard card, and others will require you to apply for another credit card.
Why Is Building Credit Important for College Students?
- Good credit can help students land jobs. An employer may want to check your credit when you apply for a job but will need your written permission to do so. Your credit report can give the employer an idea of how you handle responsibilities. What employers can access varies by state, but they won’t be able to see your credit score. Some states have prohibited employers from using credit reports in the hiring process.
- Credit can affect auto insurance rates. Credit score is one of a number of factors auto insurers may consider when issuing and pricing policies. A good credit rating can drive down car insurance costs. However, use of credit information in determining auto premiums is banned in some states.
- Good credit can make renting an apartment easier for students. Your credit score indicates your creditworthiness, and a higher number looks better, especially in a competitive rental market. You may also get the benefit of moving in without paying a security deposit. A FICO score of 670, which falls in the good range, can be helpful to rent an apartment, but keep in mind that cutoffs vary. The landlord may take a closer look at your credit details if your score is in the mid-600s or lower, according to myFICO.
- Good credit is necessary for financing a home or car. A good credit history can help you qualify for a mortgage or car loan with a favorable interest rate. The higher your credit score, the more affordable your monthly payment could be. Even a difference of 20 points between credit scores can add up to thousands of dollars in savings over the life of a loan.
Can Students Get a Credit Card With No Credit?
Students with no credit history who want credit cards are not out of luck. You could ask a parent or trusted family member or friend to add you to an account as an authorized user, or consider applying for:
Can You Prequalify for Student Credit Cards?
Many credit cards allow applicants to prequalify, a process that determines someone’s likelihood of approval before applying. The card issuer uses a soft inquiry that does not harm your credit score to see whether you are a good fit.
Prequalification saves you from applying for a bunch of credit cards that are out of your league. Each hard inquiry from a credit application could drop your score by five points or less, although the effect diminishes after a year.
At the same time, prequalification is neither a real application for credit nor a guarantee of approval.
How Old Do You Have to Be to Get a Student Credit Card?
If you are 18, you can apply for a credit card in your own name if you can show proof that you earn an independent income or have a co-signer. But many issuers do not allow co-signers, and those that do will expect co-signers to have good credit.
U.S. News Survey
U.S. News Survey: Only a Small Percentage of Undergraduates Have Credit Cards
According to a survey by U.S. News, just 6.4% of undergraduate college students have a credit card. Even for those students with credit cards, they pay with their debit cards more frequently (37.5% use debit cards most often, compared with 29.7% who use credit cards). But though college students with credit cards aren’t heavy users, they’re still carrying debt – 82.2% of respondents have some credit card debt, and 14.7% have more than $5,000 in debt.
Additional Survey Insights
Interest rate is the most important credit card feature for most college students.
College students have high credit limits – 39.7% say it’s higher than $5,000.
Less than half of respondents say they typically pay the full balance on their card.
College students are preparing for a life of debt – 14.9% expect it will take more than a year to pay their credit card debt.
A third of college students applied for a credit card to build their credit.
A significant portion – 42.1% – of college students with credit cards aren’t worried about either credit card debt or student loan debt.
U.S. News Survey Methodology
- U.S. News ran a nationwide survey through Google Surveys in August 2021.
- The sample was derived from users on websites in the Google Surveys Publisher Network, and the survey was configured to be representative of the general American population.
- Respondents were undergraduate college students with a credit card. The first question in the survey screened respondents, and the remaining nine questions were answered by card-holding college students.
Survey Results
Best Student Credit Cards Methodology
U.S. News has been providing advice to students for more than 30 years. To determine the best cards for students, our Best Student Credit Cards rankings factor in overall satisfaction data, rewards earning rates, annual fees, APRs and the length of introductory APRs. The satisfaction data is based on an annual nationwide survey. On our list of the Best Credit Cards for Students, you will only find no-fee or low-fee cards that students are likely to qualify for. The cards we recommend are for all types of students, but remember each situation is different. Make sure you understand what to expect from the credit card you select.
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