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How to Choose the Best Credit Card for College Students

6 min read
Last Updated: September 12, 2024
Getting a credit card

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Key Takeaways

  1. A student credit card could help you build credit, cover unexpected expenses, and earn cash rewards.

  2. Student cards can help you learn how to manage your finances successfully while you’re a college student.

  3. Like other credit cards, student cards have an interest rate, credit limit, and more, but they may have unique benefits for college students.

A student credit card is a great first step to start learning how to use credit for a college student. With responsible use, you can practice managing a credit account and avoid accumulating credit card debt or racking up interest charges.

 

But how can you choose the best student cash rewards credit card for you? Let’s start by covering the benefits of a student credit card.

What are the benefits of a student credit card?

A student credit card works with all of the benefits of a traditional credit card. A credit card is helpful to earn cash back on your purchases, build your credit history, and have on hand for emergencies. Plus, a student card can be a great way to learn good money habits and develop new skills (like keeping track of spending and making on-time payments).

A student credit card could help pay for an unexpected expense

Access to funds can make a difference if an emergency occurs or a surprise cost arises. Unexpected expenses range from good (getting concert tickets, taking advantage of a sale for something you need) to bad (car repairs, traveling for family emergencies). A credit card could offer financial security or help keep you safe.

A student credit card can help you establish good credit

Have you established a credit history yet? Don’t worry, many college students haven’t—unless they’ve been an authorized user on an existing credit account.

 

Many student credit cards will accept your application without a credit history. Plus, student credit cards have terms and conditions to help college students build a credit history with responsible use in a low-risk environment (lower credit limits, intro APR promotions, balance transfer offers, access to credit scores).

There’s no credit score required to apply for Discover Student credit cards1 like the Discover It® Student Cash Back Card.

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A student card would be an active credit card account on your credit report. And, if your credit card company reports to a credit bureau, you can begin building credit. This information becomes a part of your credit report and your credit score. The information your card issuer shares could include the amount you spend and whether you make payments on time.

To establish good credit, using your student card responsibly is important.

Understand how a student credit card differs from other financial tools

As a college student, you may be learning to manage various kinds of accounts as part of your personal finance portfolio.

 

Here are some common financial accounts and important ways they differ from a credit card.

According to the U.S. Department of Education, Office of Student Aid, a federal student loan (different from a personal loan) is a set amount of money borrowed at one point in time to pay for education and must be paid back with interest. A credit card is a revolving line of credit or a line that remains open for borrowing, and you can use it to cover different expenses.

A debit card links to the cash in your bank account or credit union. Typically, you can only spend as much money as you have. A credit card allows you to spend up to your credit limit, even if you can’t pay it back right away. If you spend more than you can repay in one month, you may begin to accumulate interest on the balance you carry.

A secured credit card is a credit card for someone without an established credit history or someone looking to improve their credit. You provide a cash deposit to the credit card issuer to get a secured credit card. That deposit becomes the credit limit at account opening, but it's not used to repay the balance.

How can you use your student credit card responsibly?

Credit cards can be a powerful financial tool, especially when used responsibly. 

Building a good credit history starts with good credit card habits. With good credit habits, you can avoid credit card debt, limit your interest fees, and build a good credit score.

Start with these tips for using credit cards responsibly: 

  1. Make a budget.
  2. Keep track of how much you spend.
  3. Make purchases you can repay in full within a month or two. (This could reduce the interest you accrue and make it easier to pay your balance in full.)
  4. Make your payments on time.
  5. Pay at least the amount listed as your minimum payment due.

Consider a cash rewards credit card

A cash back student credit card can help you earn rewards on the everyday purchases you might buy anyway. Purchases such as textbooks, software, groceries, or other necessities can pay big.

A rewards card typically pays you a percentage back for any eligible purchase (though all purchases are eligible for rewards). Compare the different rewards options between the Discover it® Student Cash Back and Chrome cards.

Did you know?

The Discover it® Student Cash Back Credit Card lets you earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn 1% cash back on all other purchases.

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Common features of the best credit cards for college students

Each credit card and card issuer are different. Common features of student credit cards are:

  • No annual fee 
  • Low or 0% APR during an introductory period
  • Low or no credit score minimum
  • Perks that cater to college students
  • Student cash back rewards 

What to know before applying for your first student credit card

Before you fill out a student credit card application, consider a few factors:

Check the interest rate

The interest rate or Annual Percentage Rate (APR) is how much you pay for the money you spend on your credit card. Some student cards will have a 0% APR introductory offer, beginning with account opening. Your interest rate may switch to a “standard” APR when the introductory APR period ends.

Consider pre-screened offers

If you’re at least 21 years old, you may receive pre-screened credit card offers for a student card. This typically means that the credit card company did a basic credit check and determined that you meet the basic criteria for that card.

Note: A pre-screened offer isn’t a guarantee that you’ll receive final approval, but you'll likely get approval if you have sufficient income and continue to meet other requirements.

Factor in fees

Beyond the annual fee, do your homework to see what other fees apply to the card. Review the credit card terms and credit card agreement for full details. Knowing about fees ahead of time will prepare you to avoid things like late payment fees, returned payment fees, and foreign transaction fees.

The best student credit card for you depends on your credit needs, credit history, and other personal factors. Take the time to review your options. Then, you can use your student card to practice managing your credit responsibly and maximize cash back rewards.

Important Information >
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Five friends taking a selfie smiling together in the city.

Enter to win a $5,000 scholarship for school

Discover® is giving away one $5,000 college scholarship every month until August 2025.2

Enter to Win

See Official Rules for sweepstakes eligibility and entry requirements, entry deadlines and drawing dates, details including odds, list of eligible colleges and universities, prize descriptions and an alternate method of entry.2

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