In this article, we will be discussing the top 5 credit card for students with no credit. When it comes to higher education, there are a lot of costs involved. Plus, you’re usually busy and don’t have time to deal with cash withdrawals or transactions, especially now that so much of life is done online.
Furthermore, by investing in your future by going to college, you have already established a goal-oriented mindset. You’ll want to be ready when it comes time to apply for a mortgage or get a good insurance rate.
Building credit is a long trip that is anything but a destination, so getting there won’t happen overnight.
Establishing credit is difficult when you’re initially starting out, and this is especially true for students with little credit history. Finding a credit card with a decent approval rate is much more difficult when you have no credit.
What is the Purpose of a Student Credit Card?
Student credit cards are designed to assist college students in establishing credit. Many other sorts of credit cards have more stringent eligibility requirements.
While these cards are generally easier to obtain than normal credit cards, applicants must still meet certain requirements.
Enrollment in education, a source of income or financial assistance, and being 18 or older are all requirements.
By not requiring a deposit, student credit cards function similarly to any other unsecured credit card. Student credit cards, on the other hand, begin with lesser credit limits and a higher annual percentage rate (APR).
For students who maintain a good GPA, benefits such as cashback or a statement credit may or may not be granted.
Consider cards with no annual fees, as these are frequently used as a first credit card by college students.
Consider upgrading your card through your current credit card issuer once you’ve demonstrated your ability to manage credit responsibly.
More generous features, a greater credit line through a credit limit increase, the chance to earn cash rewards, or even an upgrade to a travel rewards credit card are all examples of this.
As a result, the credit line will remain open, allowing you to continue building credit and upgrading to better card conditions and rewards programs.
Who Should Get a Credit Card ?
Student credit cards are ideal for those looking to establish a good credit history. Normally, you must produce proof of enrollment in school, however some cards do not require this. Some need you to be a U.S. citizen, thus foreign students studying in the United States may not be eligible.
These cards are useful for unemployed students over the age of 21. Most credit card companies require you to have an income or have a parent or other adult co-sign for your card if you are between the ages of 18 and 21.
You must still produce proof of income once you turn 21, but there are more permissible sources of income. If you’re married, for example, your spouse’s salary is taken into account.
One reason to avoid getting a student credit card is if you are unsure about your abilities to keep the card from being maxed out. Because a student credit card can have a favorable or negative impact on your credit score, you may want to wait if you are unable to make your minimum monthly payment. Student credit cards benefits everyone who can spend properly.
What Happens to a Student’s Credit Card After They Graduate?
When people graduate, credit card companies do not automatically cancel their student credit cards. The corporation may reclassify your card so that it is no longer identified as a student card, but it will continue to function normally.
Some issuers may recommend that you upgrade to another card or obtain a new line of credit. The credit card provider may contact you to offer a greater credit line once you’ve secured a professional employment and updated your income. They could also raise the line automatically.
It’s entirely up to you whether you maintain using your card frequently, cancel it, upgrade it, or retain it as an emergency card.
How to Get Credit Card for a Student with No Credit History
It is feasible to receive a student credit card even if you have no credit history. These cards assume you don’t have a lot of credit history. A steady salary can often take the place of credit history.
You could also have a co-signer with an excellent credit score for your student credit card. If your application is turned down due to a lack of credit history, double-check that you don’t have any accounts in your name that you never applied for.
If that isn’t the case, and you don’t have a co-signer, you may need to establish credit first (more on how to build a credit score as a student later in this piece).
How to Choose a Student Credit Card without a Credit History
There are a few things to consider while looking for credit cards for those with bad credit. Before you choose a new student credit card, consider the following factors:
Interest Rates: Check to see if the cards you’re thinking about have introductory rates on purchases. You’ll also want to learn about your new card’s ongoing APR, which will determine how much interest you pay if you have a debt.
Fees: Look for credit cards for students that have low or no fees. Avoid credit cards that require an annual fee.
Rewards: If you’re looking for a student card with greater benefits in categories where you spend a lot of money, compare student cards. On the other hand, you might choose a card with a larger flat rate of rewards on everything you buy.
Credit Reporting: Finally, double-check that the cards you’re considering disclose your credit balances and payments to the three major credit bureaus: Experian, Equifax, and TransUnion.
What is the Best Credit Card for Students with no Credit?
The ideal student credit card for you is determined by your spending habits and preferred reward categories. If you spend a lot of money on dining, groceries, and entertainment, for example, a card like the Capital One SavorOne Student Cash Benefits Credit Card might be ideal because it offers bonus rewards in those categories.
Flat-rate rewards cards, such as the Capital One Quicksilver Student Cash Rewards Credit Card or the Bank of America® Travel Rewards Credit Card for Students, may be a better choice if you want a more hands-off approach.
Before you choose the appropriate card for your wallet, think about the extra benefits, such as no international transaction fees (if you travel abroad frequently) and purchase protections (if you spend on big-ticket items).
Top Credit Cards for Students with no Credit
It’s simple to be approved with the finest credit cards for students with no credit. Continue reading to find out which cards we recommend, their best features, and who they’re perfect for.
Chase Freedom® Student credit card: Best for rewards and low APR
With a variable APR of 15.24 percent, the Chase Freedom® Student credit card distinguishes out since it allows credit novices to receive 1% back on all transactions. Cardholders can also get a $50 cash incentive if they make their first purchase within three months of starting their account, as well as a $20 Good Standing Reward if they keep their account in good standing each year (for up to five years).
With at least five on-time payments on this card, you may be eligible for a credit limit increase, and the Chase Credit Journey program allows you to track your credit score for free.
Bank of America® Unlimited Cash Rewards credit card for Students: Best for 0% APR
The Bank of America® Unlimited Cash Rewards Credit Card for Students is ideal for students since it helps them establish credit while also providing rewards. This card offers a flat 1.5 percent cash back rate on all purchases and has no annual fee. Those who spend $1,000 on new purchases within 90 days after account opening will receive a $200 cash incentive.
Cardholders also receive a free FICO score and 15 months of 0% APR on purchases and debt transfers done within 60 days of account creation (3 percent balance transfer fee, minimum $10). A variable APR of 13.99 percent to 23.99 percent applies after that.
Discover it® Student chrome: Best for first-year rewards
There is no annual charge for the Discover it® Student chrome. This unsecured card allows you to earn 2% back on up to $1,000 spent at petrol stations and restaurants each quarter (then 1% back) and 1% back on all other purchases. After the first year, Discover will match all of your rewards.
This card also has a six-month 0% APR on purchases, after which it has a variable APR of 13.24 percent to 22.24 percent. This makes it a fantastic choice for students who need to purchase college textbooks or other school materials and then pay them off over time without incurring interest.
Capital One SavorOne Student Cash Rewards Credit Card: Best for fair credit
Students with fair credit, defined as a FICO score of 580 to 669, can apply for the Capital One SavorOne Student Cash Rewards Credit Card. This card has no annual fee, and you may receive 3% back on restaurants, entertainment, popular streaming services, and grocery store purchases, as well as 1% back on everything else.
There are no international transaction costs, and you can cash out your rewards for any sum.
Discover it® Secured Credit Card: Best for bad credit
If you’re just a student who has made financial mistakes in the past, a secured credit card may be the best way to start rebuilding your credit. You must put down a refundable cash deposit as collateral with this sort of card, but careful credit use will help you improve your credit score.
The Discover it® Secured Credit Card requires a minimum deposit of $200 to begin, but it reports your payments to all three credit bureaus to help you establish your credit profile. There’s no annual fee, and you get 2% back on up to $1,000 in gas station and restaurant expenditures each quarter (then 1% back) and 1% back on everything else.
Disclaimer: This post may include references to financial products and services that can assist you in making better financial decisions. We don’t offer investment advice or urge you to follow a particular investing strategy. It is entirely up to you what you do with your money.