College students stand at an intersection. It can be difficult to keep the basic building blocks of credit for a solid financial future. Banks want loyal customers for life, but they don’t want to give credit to those who can’t or won’t pay it back.
Enter the student’s credit card. With small credit limits and rewards suitable for college students, student credit cards can provide a bridge to more valuable credit offers in the future. Note that the Credit Card Act of 2009 stipulates that no credit card can be issued to anyone under the age of 21 unless parents or guardians sign up for it or have an independent income.
FULL LIST OF EDITORIAL PICKS: BEST COLLEGE STUDENT CREDIT CARDS
✌️ Discover it® Student Chrome
Our choice for simplicity and value
Simplicity Discover it® makes Student Chrome perfect for students looking for their first credit card. You will receive bonus cashback at restaurants and gas stations that do not require activation and there are no rotating categories to keep track of.
✌️ Discover it ® Student Cashback
Our selection: Bonus cashback categories that revolve.
Discover it® Student Cashback gives students the same excellent rewards as regular Discover it® cashback. In particular, bonus cashback in the revolving categories that you must activate. Activating and tracking categories can be a big hassle for new students to credit cards, but if you’re willing to do a little work, the rewards can be great.
✌️ Capital One SavorOne Student Cash Rewards Credit Card
Our selection: Bonus cashback categories that stay the same.
Among the cards designed for students, the $ 0-a-year fee is close to the head of the Capital One SavorOne Student Cash Rewards credit card class. It receives an 8% cashback on Capital One Entertainment purchases and a 3% refund in a variety of popular spending categories, including student meals, leisure purchases, qualifying chain services and grocery store purchases. Which, of course, made the video an overnight sensation. Cards that require an annual fee or sterling credit.
✌️ Capital One Quicksilver Student Cash Rewards Credit Card
Our Choice: Flat Rate Cashback
The Capital One Quixelver Student Cash Rewards credit card achieves high scores for the cards in its class, its $ 0 annual fee and no rewards rate: 1.5% cashback on all purchases. It’s as good a combo as you’ll find on most non-student cards.
✌️ Deserve® EDU MasterCard for students
Our Choice: No Credit History and International Students.
Applicants for Deserve® EDU MasterCard for students do not need a co-signer or security deposit, and international students do not need a Social Security number. This makes it even easier for students with a limited credit history to get approved. Plus, it comes with a solid 1% return on all purchases.
✌️ Student rewards journey from Capital One
Our choice for unique privileges
Travel Student Rewards from Capital One is a powerful incentive for newcomers to develop responsible habits. You get cashback on every purchase, but when you pay your bills on time, the cashback rate for that month increases.
✌️ Chase Freedom® Student Credit Card.
Our Choice: Simple Rewards + Easy Earned Bonuses
With its rewards and bonuses, its relatively low APR, its $ 0 annual fee and its upgrade prospects, the Chase Freedom® Student Credit Card offers a great combination of benefits to students looking for their first card.
✌️ Capital One Platinum Secured Credit Card
Our choice for a secure card
Capital One Platinum Secured Credit Card requires a security deposit, as is the case with all secured credit cards. But while for most cards you need to deposit the same amount as your credit line, this allows some eligible applicants to get a $ 200 credit line with a $ 49 or $ 99 deposit. In addition, you may automatically be considered for a higher credit line with no additional deposit for less than six months.
Why it is wise to make credit as a student.
Building credit may not seem like an immediate priority when you’re still in school, but the sooner you start clocking in on your credit history, the better. Having good credit on the road is important when you want to buy a home or take out a car loan, but there are even more immediate benefits. For example, good credit can improve your chances of getting a job or renting an apartment.
Your credit history, which is detailed in your credit report and summarized by the credit score, shows how well you handled the loan amount, and how to use the credit card responsibly to create credit. Is one of the fastest and easiest ways to In situations where good credit works:
- 👉 Borrow money: Whether you are applying for a credit card, car loan, personal loan, mortgage or any other loan, there is a difference between good credit approval and rejection. In addition, good credit can qualify you for lower interest rates, which saves you money.
- 👉 Renting an apartment: When you apply for an apartment rent, the landlord can look at your credit score and estimate how likely you are to pay your rent on time.
- 👉 Utility configuration: Utility companies usually check consumers’ credit history. If you have a bad credit history or no credit history, your power company or water utility may ask you to pay a deposit or get a letter of guarantee from someone who is willing to pay your bill. If you can’t do that.
- 👉 Getting a job: Depending on your profession, you may need good credit to pass a job screening. Some employers do credit checks, especially for jobs that require handling other people’s money.
- 👉 Starting a business: Some lenders look at your personal credit score when you are trying to establish a business credit. If you dream of starting a business or want to keep the door open for that possibility, a good credit score can keep interest rates affordable.
What to do with your student’s credit card after graduation?
Once you raise your credit score to the best of the best, you are more likely to be approved for regular, non-student credit cards with higher rewards and better features. After graduating and starting work (or moving on to graduate school), consider your options with your student’s credit card:
- 👉 Keep using it: In most cases, you can still hold your student card after graduation. If there is no annual fee on the card, there is nothing wrong with keeping the account open and using it. However, a different card can offer better rewards or lower interest rates.
- 👉 Upgrade it: Ask your issuer if you can change your account to another card by changing the so-called product. Doing so allows you to switch to a card that fits your needs while keeping the account open. This is beneficial for your credit score as it helps preserve the length of your credit history.
- 👉 Change it: If you are paying an annual fee on a student card that you do not intend to continue using, and the issuer will not upgrade you, you may want to apply for a better card and (once approved) Later) Students will be better off closing the card. the account.
- 👉 Keep it in a drawer: If you can’t upgrade the card (or choose not to) but you are not paying the annual fee, it is wise to keep the account open even after applying for other cards. Benefit from your credit score. Use a simple “automatic payment and daily” strategy to keep your account active with one or more purchases throughout the year.