A student credit card can be more than just a convenient way to pay for textbooks or lunch. It may help you handle emergencies, earn rewards, and start building credit history. However, opening a credit card as a college student also comes with some serious risks to consider, like racking up debt that may affect you after graduation. A credit card is a major financial milestone, but it’s important to make sure you’re ready before you apply.
Should College Students Have Credit Cards?
8 min read
Last Updated: January 9, 2026
Table of contents
Key Takeaways
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Credit cards may help college students build their credit history and learn financial literacy skills.
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If you don’t use your credit card responsibly as a college student, you may lower your credit score.
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College students without credit history may qualify for some secured credit cards and student credit cards.
Earn top-tier rewards and build your credit history with the Discover student credit card with responsible use.1
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Why college students should have a credit card
A credit card is often a helpful tool for students taking the first steps toward financial independence. By opening a credit card account in college, you may access some immediate benefits and begin building a strong credit history that may help you in the long term, too.
Build your credit
One of the most significant reasons you may want a credit card in college is to begin building credit history. When you use your card responsibly by making timely payments each month and keeping your credit card balance low, that information appears on your credit reports and positively influences your credit scores. A good credit score may offer several advantages as you move through college and into young adulthood, including:
- Higher credit limits. Your first credit card may have a lower credit limit than the average card. But a strong credit history may help you secure a credit line increase, making it easier to keep a low credit utilization ratio, which is your outstanding debt compared to your available credit.
- Additional rewards. With a higher score, you might qualify for premium cards offering better rewards or additional perks, provided you meet other criteria.
- Better loan rates. A good credit score may also help you get lower interest rates, larger loan amounts, or more favorable terms on future loans.
- More rental options. Applications for apartments and rental homes often include a credit check. A strong score may expand your rental options or help you land the apartment of your dreams.
Learn to budget
A credit card may help you understand some fundamentals of financial literacy, like paying bills on time and creating a budget. Responsible credit card use allows you to practice healthy financial habits, like moderating your spending, keeping track of your payment due date, and making at least the minimum payment every month.
Some credit cards also have tools on their websites or mobile apps that track your spending and sort transactions into categories, so you may see where your money is going. That way, you might more easily identify issues and adjust your spending habits as needed.
Earn cash back
Some credit cards offer cash back rewards on your everyday purchases. To find the best rewards credit card for you, consider your spending habits. Look for a card that offers cash back at the places you already shop.
The Discover it® Student Chrome credit card allows you to earn 2% Cashback Bonus® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.2 If you often drive to class or go out to lunch, it may be a good fit.
Pay for emergencies
Life happens. With a credit card, you may cover unexpected expenses, from repairing a broken-down car to replacing a broken laptop, right away, instead of waiting until you have the cash on hand. Of course, you’re still responsible for the credit card bill that comes from these expenses. It’s important to pay down the balance as soon as you can so your credit card debt remains manageable.
Protect against fraud or loss
A credit card may offer more protection from theft than cash or a debit card. If you carry cash and it’s lost or stolen, you’re unlikely to get it back. But if someone gets their hands on your credit card information, you’re protected against most unauthorized use.
Under the Credit Card Act of 2009, you may only be responsible for a maximum of $50 in unauthorized credit card charges as long as you report the theft promptly, according to the Federal Trade Commission. Some credit card issuers offer even more protection. For example, you’re never held responsible for unauthorized purchases on your Discover® Card.3
Potential drawbacks to students using credit cards
Before you can make an informed decision about opening a credit card account, you have to understand the potential drawbacks and risks. Consider a few challenges that college students might face with credit cards.
Damage to your credit score and history
When you get your first credit card, it’s easy to lose track of your spending or splurge on treats you may not otherwise buy. But as your balance goes up, so does your credit utilization ratio. High credit utilization may hurt your credit score.
And as a busy college student, you might miss your payment due date, especially if you’re not used to managing regular bills. A single late payment could hurt your score. Rebuilding your credit score takes time, so it’s important to make sure you understand responsible credit habits before opening a credit card account.
Interest payments
If you don’t pay your credit card bill in full by the due date, your remaining balance accrues interest according to your card’s annual percentage rate (APR). Credit card interest typically compounds daily, which means interest charges are added to your balance daily. So, your interest accrues interest. These charges add up over time, especially if you make only the minimum payment each month.
Excessive credit card debt
Once interest starts accruing, credit card debt may increase quickly and become hard to manage. Unmanageable credit card debt may hurt your credit score and leave you in a financially precarious position. This may be especially difficult when you’re just beginning your career and living independently for the first time.
Good credit cards for college students
Many students don’t have a credit history, so the best credit cards for college students often allow you to apply even if you don’t have a credit score.
Student credit cards
A student credit card is designed to meet some common needs of college students. You generally don’t need a credit history to qualify for a student credit card. Because many college students are learning to manage credit for the first time, a student card may have a lower credit limit than a traditional credit card. But, like a traditional credit card, a student card may offer rewards.
For example, the Discover It® Student Cash Back card allows you to earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate.
Secured credit cards
Like student cards, secured credit cards don’t usually require a credit score or credit history to apply. Secured cards differ from student cards in that a secured credit card requires a refundable security deposit, which typically equals your credit limit. If you don’t repay your balance, the credit card issuer may keep your deposit. But if you use your card responsibly, you may get your deposit back and upgrade to an unsecured credit card. You don’t have to be a college student to get a secured card, but they’re available if you prefer that option.
How to choose a credit card for college students
The best credit card for you is likely to be the one that best aligns with your priorities. For example, if you’re planning to study abroad, you may look at student cards with no foreign transaction fees. If you want to build credit history, make sure the credit card you choose reports to at least one major credit bureau.
As a college student, you may have limited income. An annual credit card fee might strain your budget unnecessarily, especially if you’re not utilizing all the card’s features. A credit card without an annual fee may be a better fit.
Did you know?
You may not have to pay an annual fee to earn rewards. There’s no annual fee on any Discover card.
How college students can qualify for a credit card
In order to be considered for a credit card account, you’ll need to provide proof of the following qualifications:
- Age. You must be 18 or older to open your own credit card account.
- Adequate income. If you’re between 18 and 21, you’ll need to have your own income to get a credit card, or else you’ll need a co-signer. If you’re 21 or older, you may include any household income that you have access to like a spouse’s salary on your credit card application.
- College enrollment. To open a student credit card account, you must show the credit card issuer that you’re a current student in a qualifying college or higher education program.
The bottom line
A credit card is a helpful tool, but it’s also a major responsibility. If you’re not ready for an account of your own, you may be able to become an authorized user on a trusted family member or friend’s account to build positive credit history.
Whether you get your first credit card in college or years later, it’s important to practice good credit habits. The responsible choices you make with your first credit card may help you meet your financial goals throughout your life.
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