5 Best Student Credit Cards of June 2024

The best credit cards for students are Firstcard and Discover it Student Cash Back. Both cards help you build your credit and have special eligibility requirements to help you qualify.

Start building your credit from a young age with one of the best student credit cards. These cards are designed for young people starting life independently, which means they have lower qualification requirements, making it possible to get a card with a limited credit history. As your credit grows, most of these cards will grow with you or convert to other forms so you have a larger credit line as you transition to your early career. Read on for the best cards based on your unique financial criteria. 

Quick Look: The Best Credit Cards for Students

• Best for All-in-one Bank and Credit Card Service: Firstcard
• Best for Quarterly 5% Cash Back Bonus Categories: Discover it Student Cash Back
• Best for Popular Student Cashback Categories: Capital One SavorOne Student Cash Rewards Credit Card
• Best for Students Who Travel or Study Abroad: Bank of America Travel Rewards Credit Card for Students
• Best for Earning Credit Line Increases: Petal 2 Visa Credit Card

The Best Student Credit Cards

Here’s a look at the best credit cards for students to help you qualify for a card as you grow your credit. Start growing your credit now so that once you graduate you have the credit required to qualify for the best loans, such as a mortgage or auto loan, with good terms. 

When you’re getting started managing your finances, it can be challenging to track spending and financial standing because the data is in separate accounts. Firstcard offers a bank account and credit card all in one to make financial management clear and simple. 

When you apply, you won’t face a credit check and don’t need a good credit history to qualify. International students can also access this card without a Social Security number requirement. 

The bank account offers 1.25% APY on your funds for the standard account or 4.25% for Firstcard+ accounts. With no hidden fees, annual fees, overdraft fees, setup fees, or interest, it’s a safe way to build your credit without the risks of overspending and going into credit card debt. 

Earn 1% cashback on all purchases with the credit card and up to 15% back with partner merchants. 

Why We Love It: Start building your credit with a credit card that helps students learn about managing their finances while preventing credit card debt. Enjoy features like autopay and no fees to get started with your first credit card wisely.

You don’t need to have a credit score to apply for the Discover it Student Cash Back card. With no annual fee and solid cashback opportunities, you’ll enjoy access to the same Discover perks but with simpler qualification requirements to help you get started building your credit.

In the first year, Discover will match all cash back you earn, which can help you build a nice nest egg for getting started on your own after you graduate. Plus, when you redeem your cash back for gift cards, you can stretch your earnings a little farther because they are discounted. That means you can get a $20 gift card with $18 in cash back to stretch your cash and get the most from it.

The card grows with you as you establish your credit. Once you graduate and have the income and credit required, you can convert it to a standard Discover it Cash Back credit card.

Why We Love It: The dollar-for-dollar cashback match in your first year can help you save for a large purchase, like furnishing your first apartment when you graduate. Once you've established your credit, you can easily convert the card to a standard Discover it Cash Back card.

The Capital One SavorOne Student Cash Rewards Credit Card offers a lucrative 3% cashback on popular student spending categories, such as dining, entertainment and streaming services. Plus, you’ll earn 3% cash back at grocery stores to accumulate cash even in the most practical categories. When you book entertainment through Capital One Entertainment, you’ll earn 8% cashback. Concert tickets and other fun events are available on Capital One Entertainment. 

All other categories earn you 1% cashback. If you miss a payment, you won't face a penalty APR as you learn how to manage your credit card. But know that missed payments still count against your credit score. 

With no annual fee, hidden fees or foreign transaction fees, the card is good for building your credit responsibly as you learn how to use a credit card.

Why We Love It: Earn a $50 bonus when you spend $100 on the card in the first three months of having the card. Students studying abroad enjoy no foreign transaction fees.

4. Best for Students Who Travel or Study Abroad: Bank of America Travel Rewards Credit Card for Students

Manage your finances from the convenient mobile app users have rated highly for ease of use. Review your monthly FICO score to watch your credit grow throughout your days as a student so you’ll be ready to increase your credit line and qualify for other financial tools as you venture out on your own after graduation.

The card has no annual or foreign transaction fees, making it a great choice for students planning to study abroad or travel. Spend $1,000 in the first 90 days of opening the card to earn a $250 statement credit toward travel purchases. Earn 1.5 points for every dollar you spend. Then, redeem those points for flights, hotels, restaurants, or rental cars.

Why We Love It: No foreign transaction fees make this a great card for students planning to study abroad. The 1.5 points per dollar cash back can help pay for travel expenses as you explore during your youth.

5. Best for Earning Credit Line Increases: Petal 2 Visa Credit Card

When you’re getting started with your first credit card, it can be challenging to understand how to grow your credit limit and get on a good path toward growing your credit score and establishing your credit history. Petal 2 Visa Credit Card can make the process clear.

You’ll earn a credit limit increase when you make on-time payments for the first six months of having the card. View your monthly credit score in the app to see how you grow your credit. Earn up to 10% cashback with partner merchants. Set push notifications to monitor your transaction history in real-time and review account balances to ensure you don’t overextend yourself.

With no annual, foreign transaction fees and 1.5% cashback on everyday purchases, it’s a great way to establish and grow your credit.

Why We Love It: The clear path toward increasing your credit line is a nice perk for those preparing for what comes after they complete their education. The flexible notification settings can help new cardholders monitor their transactions and stay updated on payments.

What Is a Student Credit Card?

Student credit cards are designed to help students in undergraduate programs and beyond begin building their credit and learning healthy spending habits while they are getting their education.

Most college students have minimal credit history and may not even have a credit score yet, making it challenging to qualify for a traditional credit card. Some cards do not require a hard credit pull or any credit history.

The perks on these cards can include discounts on streaming services, lower delivery fees for delivery services and other benefits specifically tailored to college students and their needs. Often, retail and restaurants provide greater cashback rewards since young adults tend to spend their money there. You might even find cards that provide discounts or greater rewards on school supplies.

A setback to a student credit card is that it often includes a lower line of credit since students are seen as riskier borrowers until they’ve proven they can have healthy financial habits.

Why Is Building Credit Important for College Students?

Building your credit now while you’re young is important. Here’s a look at why you shouldn’t pass up the opportunity for a student card if you qualify and believe you can manage it well.

1. Learning healthy financial habits: The sooner you start managing your finances, the better. Learning how to budget and stay within that budget takes time to learn. You can start being disciplined now to prevent debt and financial mistakes.
2. Perks: While you could keep using a debit card to make digital and online purchases, using a credit card helps you take advantage of cardholder perks, such as rewards or discounted services.
3. Better loan terms after graduation: By starting now, you’ll have a credit history and a stronger credit score, as long as you manage your credit card well. This means you’ll qualify for better terms when you buy a car, house or other large purchase after graduation.
4. A chance at the best apartments: Once you no longer live on campus, you’ll want to have greater freedom to choose where to live. Part of the application process is undergoing a credit check. The better your credit, the better tenant you’ll make and landlords will know that. They want to know you’ll pay your rent and hopefully stay long term. Good credit can show good potential as a renter.
5. A greater credit limit: The more credit you have, the easier it will be to use it for things like home improvement projects or in case of an emergency, like roadside assistance for your car. A larger line of credit can give you peace of mind.
6. Faster start to building credit: The longer you wait to establish good credit, the longer it will be before you can qualify for the best rates and terms. This can mean you must delay large purchases or pay more for large purchases due to higher interest rates. Starting now can mean you have great credit in four years when you graduate.
7. There is no need for a co-signer: You might never need someone to co-sign for a loan for you as you’ll have established credit.

Pros and Cons of Having a Student Credit Card

As you look for the best way to build your credit as a young adult, consider these pros and cons of credit cards designed for students.

Pros

• Simpler eligibility: Many cards have high eligibility requirements, including good to excellent credit. While you’ll find some cards that accept fair credit, few traditional credit cards accept applicants with limited credit history as you are an unpredictable borrower. Student cards do not carry the same strict eligibility requirements.
• Unique student-oriented rewards: Students spend their money differently than other adults. Credit card companies reward students for where they spend their money most, such as subscriptions and meal delivery.
• Credit-building opportunity: When students use credit cards responsibly, they can build their credit, which can help them qualify for a traditional credit card, mortgage, auto loan, or apartment without a co-signer. 

Cons

• Minimal credit limit: Student credit cards come with limited lines of credit while young adults prove they are worthy borrowers and capable of managing their finances.
• High interest rates: The riskier the borrower, the higher the interest rates. And because students have not proven their financial abilities, these cards have higher interest rates than traditional cards.
• Loss of student benefits once graduated: You’ll only reap the benefits of a student credit card while you’re an active student. Afterward, you must transition the card to a traditional card or close the account.

How to Compare Student Credit Cards

As you evaluate your options, consider these key factors in whether a student credit card is right for you based on your needs.

• Eligibility requirements: Each card has its own eligibility requirements. Review what you can qualify for based on your current finances.
• Rewards: You want to get the most from your card. To do so, you should review the reward structure to decide what makes the most sense based on your buying habits.
• Interest rates: While you should plan to pay off your credit card regularly to avoid debt, you might experience surprise expenses and find your line of credit helpful. Consider the interest rate. 
• Ease of conversion to a traditional card: Don’t just look at the perks for students. Consider the long-term perks a credit card issuer provides once you convert to a traditional card. While you can close your student account and open a different credit card, you might like the consistency of keeping the same card so recurring payments transition smoothly.
• Mobile app experience: As you start managing finances, having a smooth digital experience can help. Look for a good mobile app to accompany your card so you can get notifications and reminders about managing your finances.
• Credit score tracking: Some credit card companies help you keep track of your credit score and how well it is shaping up as you make money moves.

How to Make the Most of Your Student Credit Card

Your goal with opening a credit card should be about building credit and learning healthy financial habits. Here’s how to make the most of your card.

• Pay on time: Set reminders for yourself so you never miss a payment. One missed payment can have a big impact on your credit.
• Review cashback categories: Most cards have certain expense categories that earn extra rewards. Learn what those are and maximize those rewards where you can.
• Open only one card: Once you open a line of credit with one company, you might feel tempted to open another with another company. You don’t want to get too many cards where you can’t manage your finances easily.
• Spend within your means: Only spend as much money on the card as you can pay off each month. This will ensure you enjoy perks from the card instead of paying high interest rates on simple purchases.

Alternatives to Student Credit Cards

Consider these alternatives if you aren’t sure a student credit card is right for you.

• Secured credit cards: A secured credit card allows you to deposit a certain amount to open a line of credit for that amount. For example, if you have $500 to deposit, you can spend up to that amount on your card before paying it off. When used responsibly, this can help you build credit.
• Credit cards for fair credit: Students with enough credit history can qualify for a credit card designed for people with fair credit. This means you can get a traditional credit card and skip the student card.
• Debit card: If you’re not sure you can stay disciplined to only spend as much as you can pay off or you’re worried about remembering to make timely payments, a debit card might make more sense for you, but it won’t help you build credit.
• Traditional credit card: Some students have enough credit history and a high enough credit score to apply for a traditional credit card, which can provide more options than limiting yourself to a student card.
• Getting added as an approved user on someone else’s card: Another great way to establish and build credit is to get someone with excellent credit and financial habits to add you as an approved user to their credit card.

Building Strong Financial Habits While a Student

You can start building strong financial habits during your student years by practicing with a student credit card. While your expenses are minor, it’s wise to start building good habits, such as making monthly credit card payments. This will prepare you for the next phase of life, where you’ll have more financial responsibilities to manage.

Frequently Asked Questions