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Student vs Secured Credit Cards: Which to Choose for your First Credit Card?

5 min read

Published March 11, 2024

Table of contents

Key Takeaways

The main difference between a student credit card and a secured credit card is that a secured card requires you to pay a deposit to the credit card issuer upfront.
Both types of cards have their own pros and cons, and the right choice for you depends on your needs and goals.
You’ll need to meet certain eligibility requirements to apply successfully for either type of card.

Student credit cards and secured credit cards are two popular types of credit cards that might seem similar at first glance. Both can help you build credit with responsible use,¹ both offer rewards for making purchases, and both are usually available to applicants without a credit history. However, there’s a major distinction between a student credit card vs. a secured credit card: secured cards require you to pay a deposit upfront, while student credit cards do not.

What is the difference between a student and a secured credit card?

While student credit cards and secure credit cards might share a similar customer type (those just beginning their credit journey), there are two main differences.

You must enroll in college to qualify for a student credit card.
A secured credit card requires a cash deposit (that acts as your credit limit).

This deposit acts as collateral that “secures” the card balance will be paid and determines your initial credit limit. For example, with Discover, your credit line will equal your deposit amount, starting at $200.² With a student credit card, like Discover It^® Student Cash Back, there’s no need to pay an upfront deposit—but you can still earn great benefits, as we’ll explore later in this article.

The deposit requirement isn’t the only difference between a student credit card and a secured credit card: they also differ in other important ways, such as who they’re designed for.

To qualify for a student credit card, you’ll need proof of enrollment at a college, community college, or university.
Anyone 18 years old or older can apply for a secured card.

If you use your secured card responsibly and raise your credit score far enough, it can often be upgraded to a regular, unsecured credit card. With the Discover it^® Secured Credit Card, you can get your deposit back after 6 consecutive on-time payments and maintaining good status on all your credit accounts.³

Pros and cons of student credit cards

Student credit cards offer numerous benefits, but there are also some potential drawbacks. Here are some pros and cons to consider when applying for a student card.

Advantages of student credit cards:

Many student cards offer generous rewards. For example, your 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.
You can build your credit with responsible use.⁴
Some student cards, like Discover It^® Student Cash Back and Discover It^® Student Chrome, offer a 0% introductory APR for your first 6 months.
Unlike a secured card, there’s no need to pay a security deposit upfront.
Generally, no credit score is required to apply.⁵

Disadvantages of student credit cards:

Some charge higher interest rates or annual fees.
You may need to provide proof of income and enrollment to be eligible.
You may have a lower credit limit, at least initially.

Pros and cons of secured credit cards

Choosing a secured credit card can be a smart way to build your credit, whether you're a college student considering it as an alternative to a student credit card, or someone who isn't a student. However, it’s important to be aware that secured credit cards have both benefits and drawbacks. Let's review the pros and cons of using secured credit cards.

Advantages of secured cards:

Secured cards, like the Discover it^® Secured Credit Card, can help you build credit with responsible use.¹
No credit score required to apply.⁶
You can apply if you’re 18 or older, even if you’re not a student.
Many have low or no annual fee.

Disadvantages of secured cards:

You’ll need to pay a deposit upfront before you can use the card.
They might offer fewer rewards than other credit cards.
Some tend to have lower credit limits due to the upfront security deposit.

Eligibility requirements for a student vs. secured credit card

Now that we’ve covered some of the major differences between a student card vs. secured card, such as their pros and cons, let’s focus on how they differ when it comes to specific eligibility requirements. Here are a few points to know before you apply:

Age Requirements — Regardless of whether you’re enrolled as a student, you’ll need to be at least 18 years old to apply for any type of credit card. However, if you’re under 18, you can become an authorized user on another person’s account.

Income Requirements — While you don't need a high salary or even a full-time job, you do need the ability to prove that you can pay your credit card bills. Whether you're applying for a student card or a secured card, prepare to provide proof of your wages, a parent's income, or other sources of income.

Credit Requirements — Student credit cards are designed for people who have little to no credit history. For example, there is no credit score required to apply for a Discover it^® Student Chrome credit card.⁵ Secured credit cards also tend to have relaxed credit score requirements, with many available to applicants who have poor credit or no credit history.

The bottom line

Choosing between a student credit card and a secured credit card is not about which is the best overall. It's about which matches your financial situation, needs, and credit background. To choose the right card, consider different aspects like cash back rewards, associated fees, and your eligibility. Both types of cards can aid in building your credit and enhancing your creditworthiness when used responsibly. They also offer added flexibility for emergencies and everyday purchases.

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