When you’re just starting out, one of your most valuable financial assets is your credit. It may be useful in the future when you need to purchase a car, obtain a loan, or finally obtain a mortgage for your first house. This is why it is advisable to know the best credit cards for college students.
Even if those things are years away, it’s never too early to start building credit.
Obtaining a student credit card is one of the greatest — and simplest — methods to accomplish this. A credit card can help you establish good credit and set you on the path to financial success early on.
However, there is a catch: To be authorized for a credit card, you normally need to have a credit history, but you must first obtain a credit card.
As a result, credit cards meant for college students often have slightly lower approval requirements.
Even if you have no credit, little money, and no one to co-sign your application, you can still apply for student credit cards in August to help develop your credit.
Best Credit Cards for College Students in September 2023
As a result, credit cards meant for college students often have slightly lower approval requirements.
Even if you have no credit, little money, and no one to co-sign your application, you can still apply for student credit cards in August to help develop your credit. The best-secured credit card is:
Chase Freedom Student Credit Card
In the absence of an annual fee The Chase Freedom Student Credit Card is an excellent way to begin earning travel rewards.
This is due to the fact that the card earns 1% cash back on all purchases, but the cashback is in the form of Chase Ultimate Rewards points.
Those Ultimate Rewards points can be redeemed for cash back at a rate of one cent per point on their own.
However, if you are approved for one of the premium Chase credit cards, such as the Chase Sapphire Preferred® Card or the Chase Sapphire Reserve®, you can get more value for your points by redeeming them for travel or transferring them to one of Chase’s travel partners, such as United Airlines, JetBlue, or Hyatt.
Even if you don’t qualify for a premium Chase card right now, you may always preserve your points instead of redeeming them right now, and then upgrade to a higher-end Chase credit card and redeem them when you leave college and get your first job.
Your points will not expire as long as you keep your Chase Freedom Student card active, which is free because there is no annual charge.
New Chase Freedom Student cardholders can also get a $50 bonus after making their first purchase during the first three months of starting their account, with no minimum expenditure required – even buying a pack of gum will qualify.
You may also earn an additional $20 for each account anniversary year for the first five years you have the card by keeping your account in good standing – that is, keeping the card open and not falling behind on payments.
The Chase Freedom Student card also allows you to boost your credit limit after making five on-time monthly payments within 10 months of opening the account.
Because the credit limit on student cards is usually quite modest, the ability to spend more on your card is a tremendous benefit – as long as you can always pay your account in full every month. Never spend more money than you have.
While the Chase Freedom Student card has a few drawbacks, it does not offer an introductory interest rate on purchases or balance transfers, and it does impose a 3% fee on overseas transactions.
These are two features that you’ll find on other student credit cards, so if you need to carry debt or wish to study abroad, you should seek them elsewhere.
Capital One Quicksilver Rewards for Students
If you want simplicity and cashback on a card with no annual fee, the Capital One Quicksilver Rewards for Students is a great option.
You’ll get an infinite 1.5% cash back on everything you buy, making it the highest flat-rate cash-back card on our list of the best credit cards for college students.
One of the best things about Capital One credit cards, including the Capital One Quicksilver Rewards for Students, is that you can use a virtual card number to pay for all of your online purchases.
This additional layer of security can help keep your credit card safe, especially if you’re sharing a tablet with other students.
In addition to being a good option for everyday cash back, Capital One Quicksilver Rewards for Students now offers a $50 sign-up bonus if you spend $100 on purchases within three months of opening your account.
And, because there are no foreign transaction fees, it’s an excellent card to have on hand when going abroad.
The card also provides 10% cashback on Uber and Uber Eats purchases, as well as a free Uber One monthly membership (through monthly statement credits) through November 14, 2024.
If you’re ready to be smart about bonus categories, you might want to look into the Capital One SavorOne Rewards for Students instead.
This card is a little more difficult; you’ll receive 3% cash back on restaurants, entertainment, popular streaming services, and grocery stores (excluding superstores like Walmart and Target), and 1% cash back on everything else.
Bank of America Cash Rewards Credit Card for Students
The Bank of America Cash Rewards Credit Card for Students allows clever college students to earn up to 3% cash back in one category of their choice.
Gas, internet shopping, restaurants, travel, drugstores, and home improvement/furniture are among the categories.
The best part is that you can modify your category on a regular basis based on your spending habits.
This is a benefit that is difficult to obtain even on standard credit cards, so being able to maximize your cash back based on your purchasing habits is a huge plus.
For example, if you have a road trip scheduled for one month, then this would be an excellent time to switch your bonus category to gas and receive 3% cash back on every fill-up.
Then, if the next month falls around the holidays, you can switch your bonus category to online shopping and earn even more cash back on your holiday purchases.
Aside from the 3% cash back on your chosen bonus category, you’ll also get 2% cash back on groceries and wholesale clubs, and 1% cash back on anything else.
However, your bonus category purchases are limited to $2,500 every quarter (a combination of the 3% and 2% cash-back categories). If you reach this limit, you’ll get 1% cash back on everything for the rest of the quarter.
Aside from the potential monthly bonus, new card members can get $200 in extra cash back by spending at least $1,000 in transactions during the first 90 days after creating the account.
While this may appear to be a lot, it only amounts to $333 each month on average.
Bank of America Travel Rewards Credit Card for Students
If you don’t want to deal with bonus categories and prefer a more straightforward approach, the Bank of America Travel Rewards Credit Card for Students may be the best option for you.
This card earns a flat 1.5 points for every dollar spent on it, regardless of the type of purchase you make.
This is greater than the regular 1% cash back, but you will miss out on some other cards’ bonus categories, which can earn you 2 to 5 times as much.
It’s also worth noting that, unlike some of the other cards on our list, the Bank of America Travel Rewards for Students earns points rather than cash back.
While you may always cash in your points, you’ll lose some value because you’ll get the most out of them when you utilize them for travel.
Fortunately, redeeming your points for travel on this card is simple. When you make a purchase that comes under the “travel” category of the card, you can redeem points to offset the cost of that purchase.
Airfare, hotels, buses, taxis, and other transportation costs are all included in travel. In reality, many leisure purchases are counted by Bank of America, which means your points can be used to visit amusement parks and museums.
Best of all, there is no annual fee with this card, and new cardholders receive a 25,000-point bonus that can be used for a $250 statement credit toward travel expenditures.
To qualify for the bonus, you must spend $1,000 on the card during the first 90 days. However, if you have any upcoming expenses, this could be a great way to offset the cost of your next spring break trip.
Bank of America Travel Rewards for Students also offers a 0% APR on purchases for the first 18 billing cycles, after which the APR rises to a variable 18.24% to 28.24%.
If you have any major expenses coming up that you won’t be able to pay off right away, such as furniture for your off-campus apartment, this is a fantastic method to carry some debt without paying interest.
Simply be sure you can pay off your items before the introductory period expires and the interest rate rises.
And, for your “study abroad” travels, make sure you have a credit card that does not charge you fees for overseas transactions.
The Bank of America Travel Rewards for Students feature no foreign transaction fees, making it excellent for international travel.
Platinum Secured Mastercard from Capital One
If you are unable to obtain approval for a student credit card designed for people with fair credit, a secured credit card, such as Capital One’s Platinum Secured Mastercard, may be the ideal answer.
This card isn’t aimed primarily at students, but there are no restrictions on who can apply.
A secured credit card requires a cash deposit before you may use it; for example, the Platinum Secured Mastercard from Capital One has a $49, $99, or $200 refundable minimum security deposit.
This permits the bank to have your money in case you miss any payments. The more you put down as a security deposit, the bigger your credit line will be.
Once you’ve been approved for the card, you can eventually recoup your original deposit by acting responsibly, such as by making on-time payments.
Your account will be continuously monitored, and once the bank determines that it is ready, the security deposit will be refunded to you as a statement credit.
Alternatively, if you decide to close your account, your security deposit will be returned.
Acceptance for a secured credit card is easier than acceptance for a conventional credit card, and it can ultimately help you create a credit history.
The disadvantages of this card include no introductory bonus, no perks such as cashback or travel points, and a low credit limit.
However, if you need to build or repair your credit, having a card that sends your payment history to all three major credit bureaus will help you get back on track.
Just be responsible with the card, and you should be able to apply for more desirable cards in the future.
Deserve Student Credit Card
Because the Deserve Student Credit Card is not a traditional credit card, it uses a somewhat different procedure to approve applications.
If you are an international student, you do not need a social security number to apply for the card, which implies that those studying in the United States can apply for it.
While the Deserve Student Credit Card only offers 1% cash back on every dollar spent, the additional features of this no-annual-fee card may more than compensate for the lesser rewards rate.
For starters, this card provides cell phone protection, which can save you hundreds, if not thousands, of dollars during your academic career.
If you use your card to pay your monthly cell phone bill, you’ll be covered for up to $600 if your phone is stolen or damaged, with a $50 deductible per covered incident and a maximum of $1,000 per calendar year.
Of course, this is a benefit you hope you never have to use, but having a credit card that will cover unforeseen out-of-pocket repair bills is a significant reward.
Other advantages of the Deserve Student Credit Card include car rental insurance and no foreign transaction fees, making it an excellent choice for international travel.
You’ll also get one year of Amazon Prime Student after spending $500 on the card in the first three billing cycles as a new cardholder (worth $69).
Conclusion
Student credit cards are often easier to obtain than premium rewards or travel cards designed for those with good credit.
Student credit cards, on the other hand, often offer less extensive rewards schemes and fewer cardholder advantages.
You can apply for credit cards with bigger rewards or additional advantages if you’ve built a good credit history.
Frequently Asked Questions
Which credit card is best for students?
Chase Freedom Student Credit Card
What is the credit limit for college student cards?
Student credit card credit limits are often less than $1,000 and begin at $500, depending on the issuer.
Can I have 2 credit cards as a student?
Students who can manage several accounts and pay off all bills on time each month would benefit from having an additional credit card or two.
Do college students use credit cards?
According to CollegeFinance.com, the average college student has over $3,280 in credit card debt.
