Student Credit Cards: Good Credit Card for Students

Student credit cards can be a good way to build your credit history. If you have no credit history, it can be quite difficult to get a more traditional credit card that is not targeted at students and has no annual fee and a low-interest rate. The student credit card offers exactly this since it’s designed for young people who have little or no experience with managing money. A lot of them also offer rewards programs that might be useful as well.  

If you already have some experience with managing money, then you could look for a student credit card with better rewards programs or special perks like rental car insurance, travel insurance, or roadside assistance services.   

What Is a Student Credit Card?

College student cards are issued to young adults who have a steady source of income, making them an ideal candidate for opening their first credit card. A credit card for the student has features that help them build their credit history, such as:  

1. The ability to make small purchases without requiring a co-signer or deposit  
2. An extended grace period on cash advances and balance transfers  
3. A low-interest rate on purchases, but higher rates on balance transfers and cash advances (high rates can be avoided with responsible utilization)  

How Do Student Credit Cards Work?

Student credit cards are designed to give students with little to no credit history the opportunity to build their financial profiles. They work similarly to regular credit cards, but they have different rewards programs and special features that cater specifically to college students.  

Typically, there is no annual fee on credit cards for students, which makes them a good option for people who want a card without having to pay extra money just for owning it. Student credit card companies also tend not to charge high-interest rates, but it’s often still higher than those on other types of cards.  

If you’re interested in getting a student credit card, there are things you should know beforehand, so you can get the best credit card for your student needs.  

Look at what fees your chosen bank charges and whether those fees will be worth it considering how much time you spend on campus each week. This could help determine if it makes sense financially for you based on where your spending habits align most closely with theirs (i.e., is having access to an ATM machine worth paying $5 per month?). If there aren’t any available ATMs near campus where all students congregate regularly then perhaps going somewhere else would be more convenient instead!  

What Are the Requirements for a Student Credit Card?

It’s easy to get a student credit card, but in order to qualify for it, you must meet the following requirements:  

4. You must be over 18 years old.  
5. You must have a valid social security number.  
6. You must have a valid email address.  

In addition, there are some other considerations that will affect whether or not a particular bank will approve your application and that is proof of income. If you don’t have any sources of income, then chances are slim that any bank will lend money to someone who has no way of paying it back. The most common way for students to prove their ability and willingness to repay such loans is by having their parents cosign on the account with them (in which case both parties’ names would appear on the card). However, some lenders may accept proof from school administrators instead of parents or guardians. These documents include letters from financial aid offices stating how much money is available for students to use at school each semester. As well as transcripts showing grades earned during previous semesters at college or university-level institutions where they were enrolled prior.  

Student Credit Cards: Pros and Cons

These cards can help you learn the ins and outs of using a bank account, budgeting, and paying back what you owe in full each month. But, like any other financial tool of this kind, they have their own set of pros and cons.   

Let’s take a closer look at both their advantages and disadvantages. Be sure to carefully weigh these factors before you make any decision.  

Pros  

• Student credit cards are a great way to build your credit history. This is important for anyone looking for student loans, work opportunities, and even buying a home in the future.  

• You can use them to pay for school expenses like books and tuition without having to ask your parents or borrow money from friends.  

• When you’re in college, having a student credit card is also a good way to start building up some spending money. This way you don’t have to rely on loans so much during those first few semesters when the only income most students get comes from working part-time jobs or receiving financial aid (which also requires good credit).  

Cons  

• Interest rates are higher than other credit cards. You will typically be charged a higher interest rate on student credit cards, but this can vary depending on the card you choose.  

• Credit limits are lower than other credit cards. Student credit cards will offer you a lower credit limit because they are designed to help you build up your history of using a new kind of payment method. Because student cards have low limits, it makes it easier for lenders to approve them for those who don’t have much experience with managing their own money with their own free-standing card yet.  

Student vs. Regular Credit Cards: What’s the Difference?

Student credit cards are geared toward people who are still in school. They are easier to get, and often have higher interest rates, so paying on time will lower the rate to 0. Student credit cards also offer rewards and perks such as cash back or airline miles.  

Regular credit cards are for adults who’ve graduated from college or trade school and no longer qualify as students. These cards tend to have lower interest rates than student ones and offer other benefits like travel rewards programs or extended warranties on purchases made with their card.  

How to Use Student Credit Cards Properly

Credit card companies and banks are always looking for ways to entice you into using their products. They want your business, so they’re willing to work with you on your credit card in order to get it. But they also want you to be responsible with your money and make sure that if you have a balance on the card each month, you pay it off in full each month.  

As a student, one of the best ways to use student credit cards responsibly is by paying off your balance each month. Doing so will save money by avoiding interest charges and other fees associated with having a high balance on a 0% introductory rate offer (which typically lasts around 6-12 months). If possible, consider putting any extra money towards paying down your balances even faster or setting up automatic payments from checking accounts or savings accounts rather than relying solely on cash flow from monthly income sources such as jobs or government aid programs like SNAP/EBT benefits.  

If at all possible, try not to use cash advances when getting cash back, take advantage of free ATM withdrawals instead. Cash advance loans may cost as much as 10% while some banks charge up to 27%, which adds big dollars onto any purchase amount over $300 made within 60 days of opening an account.  

Should You Get a Student Credit Card?

You should get a student credit card if you:  

• Are 18 or older and can prove it by providing your ID.  
• Have good to excellent credit, or are willing to use a cosigner with good to excellent credit.  
• Can afford to make monthly payments on time, even though you may not have a job yet (if you do have a job, the cards we mention here will report your payment history back to the major credit bureaus). That means having at least $1,000 in savings or other sources of income aside from work (or having a cosigner who has that amount saved up). And it means making sure that any outstanding balances are paid off every month so they don’t carry over into next month’s bill. That way you’ll always be able to pay what’s owed without falling behind on payments early on in your career.  

So, what is a good credit card for students? To answer that question, you need to think about what use it will be. Most of them are good for building a credit score, and some have better rewards than others. 

We will list below what are good student credit cards.  

• Discover it® Student Cash Back- It’s the best pick overall with 5% cashback rewards in rotating categories. Also, this is a good credit card for students with an average or limited credit score. There is no annual fee and no penalty APR.  

• Bank of America® Travel Rewards credit card for Students- If you are studying abroad this card will be a great choice because there is no foreign transaction fee also comes with no annual fee and gives you flat-rate rewards points with flexible travel redemption options.  

• Capital One SavorOne Student Cash Rewards Credit Card- Card for daily use with excellent cashback on groceries, dining, and entertainment. Also comes with no annual fee and no foreign transaction fee.  

Bottom Line

Student credit cards are a great way to build a credit history and get rewards. If you’re a student, it’s important to build good credit so that when you become an adult and want to buy things like cars and houses, you’ll be able to get the best rates available. Student credit cards offer a good way to build up this much-needed credit history.  

Student credit cards are also a good way for students to get rewards while they’re still in college or university. It goes without saying that they should always pay their bills on time because this will help with their credit scores down the road when they apply for loans and other types of financing after graduation.  

These cards are a great option for students and young adults who want to learn how to budget responsibly while earning rewards. You can use a student credit card to build your credit score, earn cash back or points on purchases, and pay off your balance in full each month without any interest charges. Just remember that student credit cards aren’t right for everyone. If you don’t have a steady income or good enough credit history yet, it might be better not to apply for one until later in life when you’re ready!