Credit cards for university students are mainly designed for college and university students who lack the necessary income and credit score to qualify for a traditional credit card. If you’re a student, please read this post to learn about the best credit cards to use.
Simply explained, a credit card is a means of deferring payment for goods purchased. The credit card business gives you the funds, and you repay them later, usually with additional interest.
The amount of interest you pay increases with the length of time you take to return the loan, as it does with most loans. However, you might choose the greatest credit card and pay no interest for several weeks (or even months).
When it comes to making big life decisions after college, such as renting an apartment or applying for a vehicle loan, having a decent credit score is crucial. Opening a credit card for college students is a smart approach to start building credit while also benefiting from rewards and special financing offerings.
There are a variety of college student cards available, each with its own set of incentives for various types of students ranging from vacationers and foodies to commuters and international students. Some cards have permissive credit history requirements, allowing you to qualify even if you have no credit history. To apply for a credit card, you must be 18 years old and have a consistent source of income.
Don’t worry if you’re feeling overwhelmed by all the options. We performed all of the research for you. Choose from a list of evaluated college student cards, diving into the benefits and downsides of each card to pick the best of the best based on your spending habits.
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What is a Student’s Credit card?
Student credit cards typically feature lower credit limits, higher annual percentage rates, and fewer rewards options. Student credit cards, when used properly, may be a terrific tool to manage your expenses and improve your credit score.
Credit cards can give students various advantages, including spending flexibility, budgeting assistance, and the ability to develop a credit history that will aid them later in life, such as when applying for a home.
They can be a valuable asset if used carefully, and you can also utilize them to your advantage by earning cashback and reward points.
Credit cards, on the other hand, come with the possibility that your debt may grow and that interest costs will be substantial if you do not pay off what you owe.
5 Best Credit Cards for University Students
1. Bank of America® Cash Rewards Credit Card for Students
U.S. News’ Best Credit Cards Award for Student Credit Cards for 2021 goes to the Bank of America Cash Rewards Credit Card for Students. They did, however, choose the prize winner for each category based on credit card data from 2020.
The Bank of America Cash Rewards Credit Card for Students has a number of features that can help students manage their finances, including no annual fee and up to 3% cashback.
Secure chip card and digital wallet technologies, online and mobile banking account alerts, and optional overdraft protection are all features of the Bank of America Cash Rewards Credit Card for Students.
Other credit cards, on the other hand, provide larger rewards rates in certain areas. As a result, this card provides constant revenue on all purchases.
Review of the Bank of America Cash Rewards Credit Card for Students: The Bank of America Cash Rewards Credit Card for Students is great for student spenders, with tempting bonus categories and other advantages to help users develop good money habits.
2. Discover it Student Cash Back Card
The Discover it® Student Cash Back is a one-of-a-kind student card that offers high cash-back benefits for a low annual fee of $0. Even if you have no credit history, you may be eligible.
- Card Type: College student.
- Annual fee: $0.
Bonus: INTRO OFFER: Discover is offering an unlimited cashback match. At the end of your first year, Discover will automatically match all of your cashback!
As a result, you could turn a $50 reward into a $100 cashback. Alternatively, you may turn $100 into $200. There are no restrictions on how much you can spend or how much you may earn. There was only a dollar-for-dollar match.
When you activate, you’ll get 5% cashback on up to $1,500 in spending per quarter in categories that rotate every three months, and 1% cashback on everything else.
APR: 0% intro APR on purchases for 6 months, 10.99 percent intro APR on Balance Transfers for 6 months, then 12.99 percent – 21.99 percent Variable APR thereafter.
There is no charge for international transactions.
3. Discover It Student Chrome Card
This student card offers 2% cashback on up to $1,000 in combined gas and restaurant expenditures per quarter, plus 1% on anything else.
The Discover it® Student chrome is a generous exception to many other student credit cards, with hefty rewards and no FICO credit history requirement.
The card has no annual fee and simple benefits, making it an excellent choice for students. On up to $1,000 in total quarterly transactions, it earns 2% cashback at petrol stations and restaurants, and 1% on all other purchases.
Its initial bonuses and high grade prizes will help you stretch your student budget to cover a movie outing or a meal out. The Discover it® Student chrome is a standout among student credit cards.
- Card Type: College student.
- Annual fee: $0.
Bonus for registering: INTRO OFFER: Discover is offering an unlimited cashback match. At the end of your first year, Discover will automatically match all of your cashback!
As a result, you could turn a $50 reward into a $100 cashback. Alternatively, you may turn $100 into $200. There are no restrictions on how much you can spend or how much you may earn. There was only a dollar-for-dollar match.
READ ALSO: The Best Credit Card for Student Loans Payment
4. Chase Freedom Student Credit Card
It earns 1% cashback on all transactions. You may also qualify for “Good Standing” benefits, a potential credit limit increase, and, eventually, access to a higher-tier Chase card if you use your card responsibly. Terms and conditions apply.
Because of its credit-building features, attractive incentives, and potential upgrade route to higher-end Chase cards, the $0-annual-fee Chase Freedom® Student credit card receives high grades for goods in its class.
While you must be a student to be eligible, the card’s underwriting is for people with poor or non-existent credit. It’s Chase’s only entry-level credit card.
Other Chase rewards cards, on the other hand, often demand good credit (FICO scores of 690 or more), which is a high bar for credit rookies to clear.
After you graduate, you may be eligible for “Good Standing” rewards, a potential credit limit rise, and maybe a product move to an even better Chase card if you use your card responsibly.
However, some student credit cards provide more continuous rewards, and this card has a foreign transaction fee, so it’s not ideal if you’re studying overseas.
- Card Type: College student.
- Annual fee: $0.
Bonus: $50 Bonus after first purchase made within the first 3 months from account opening.
Rewards: 1% cashback on all purchases.
5. Capital One Secured Credit Card
Applicants may qualify for a credit limit greater than their deposit, unlike other cards that demand a cash security deposit.
Obtaining the funds for a security deposit can be a significant barrier to obtaining a secured credit card, which is one of the most effective instruments for building or rebuilding credit.
One of NerdWallet’s favorite secured cards is the Capital One Platinum Secured Credit Card, which makes deposits a little less intimidating.
The Capital One Platinum Secured Credit Card is a good option for developing credit because it has no annual fee and a few features that are especially useful for persons trying to improve their credit score.
- Card type: Secured.
- Annual fee: $0.
- Interest rate: The ongoing APR is 26.99% Variable APR.
Deposit requirement: Get a $200 credit line with an initial deposit of $49, $99 or $200, for those who qualify. You can deposit more money before your account opens to increase your credit limit up to a maximum of $1,000.
Rewards: None.
Foreign transaction fees: None.
After Graduation, What Should You Do With Your Credit Cards?
You’ll be more likely to be approved for regular, non-student credit cards with better rewards and perks after your credit score has improved to the well-to-excellent range.
Consider your alternatives with your student credit card once you graduate and start working (or move on to graduate school):
- Continue to use it. In most circumstances, you can keep your student ID card after graduation. There’s no harm in keeping the account open and using it if there’s no annual charge on the card. A different card, on the other hand, might provide better benefits or a cheaper interest rate.
- Upgrade it. Inquire with your issuer about switching your account to a different card via a so-called product change. This allows you to keep your account open while switching to a card that better meets your needs. This helps to maintain the duration of your credit history, which is good for your credit score.
- Get a new one. If you’re paying an annual fee on a student card you don’t intend to keep and the issuer refuses to upgrade you, you’re usually better off asking for a better card and cancelling the student card account once authorized.
- Keep it, but put it away in a drawer. If you can’t (or don’t want to) upgrade the card but don’t want to pay an annual fee, it’s a good idea to leave the account open after applying for other cards. Your credit score will improve as a result.
To keep your account active with one or several purchases throughout the year, use a simple “autopay and everyday” technique.
READ ALSO: Top 5 Credit Card for Students With No Credit in 2022
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