Understanding Discover® Student Credit Card Limits

Credit card companies may set lower credit limits on student cards because students are usually new to managing credit. Lending to someone with limited income and credit history is risky. By offering smaller credit limits, credit card issuers minimize their potential losses in case the student doesn’t pay their balance.

Small credit lines aren’t only about protecting the lender. Managing a high credit limit when you’re juggling credit basics and schoolwork may be challenging. A lower credit limit may help you avoid overspending and racking up unmanageable credit card debt while you’re just beginning your credit journey.

How are Discover student credit card limits determined?

Discover considers a few different factors from your credit card application to determine credit limits, including credit history, existing debts, and income level.

Credit history. While there’s no credit score required to apply,¹ Discover may take the credit history you’ve already established into consideration. So, a college student who has already built a strong credit history as an authorized user on a parent’s card, for example, may qualify for a higher credit limit than someone with no credit score in some cases.

Existing debt. If you already owe a lot of money on existing credit card accounts, you may not qualify for a high credit limit on your student card.

Income. If you have a steady, well-paying job, you might qualify for more credit than someone who receives a small, regular allowance, depending on your overall financial situation.

Remember, you’re not stuck with the credit limit you start out with. As you establish credit history and progress in your career, you may qualify for a credit line increase.

Managing low-limit credit cards for students

With a low credit limit, it’s especially important to avoid overspending on your student credit card.

If you spend a lot, you may increase your credit usage compared to your available credit. High credit usage may hurt your credit score. When you have a low credit limit, a relatively small credit card balance may increase your credit utilization ratio significantly, especially as it accrues interest. If you have a student cash back card, interest charges may also cut into your rewards.

One approach to building a good credit involves using your card for small, affordable monthly expenses, like subscriptions, school supplies, or groceries. Then, you pay your balance in full each month. As long as you stay on top of your bills, this strategy may help you build credit.

Your credit card account may come with features that make managing your credit card easier. For example, you may use your credit card's mobile app or set up text message alerts to keep track of your spending and avoid exceeding your limit. Or you might enroll in automatic payments so you never forget a due date. Setting reminders or activating autopay may allow you to benefit from having a credit card while avoiding the pitfalls of debt.

Requesting credit limit increases

A low limit on a student credit card may serve as a set of training wheels for students still learning how to manage their money. But once you have some experience using your credit card, you might want a little more spending power. Even if you don’t use your card often, a credit limit increase might sometimes make it easier to manage emergencies such as unforeseen car repairs or travel arrangements for a necessary trip back home.

When you’re ready, consider asking for a credit limit increase. It's best to do this after you've maintained timely payments and a low balance for several months. You may request a higher credit line from Discover through the mobile banking app or by calling the customer service phone number on your credit card. 

Remember, a higher limit may be helpful, but it's still important to spend wisely and keep your balance well under the new limit.

How do Discover student cards change after graduation?

As you approach the end of your college journey, you may wonder what will happen to your student credit card. With Discover, you may keep using your card like you normally would. Your account features, rewards rate, and terms remain the same, so you may keep enjoying the same benefits. 

You may want to update your income information with Discover if you get a job, in case you qualify for a credit line increase.

The bottom line

A student credit card may help you build a strong financial foundation that helps you long after graduation.³ You may start out with a low credit limit as you begin honing your credit skills. But as you grow in your career and become more confident managing credit, your credit line may go up.