Young woman uses her Discover Card for online purchases while sitting at a table.

Student Credit Cards Myths and Misconceptions

4 min read

Published December 17, 2024

Table of contents

Key Takeaways

Student credit cards work just like regular credit cards.
Credit cards for students often come with rewards on your purchases.
You can build your credit history if you use your student credit card responsibly.

You’re in college now and thinking about your future. What career do you want? What city will you live in? How will you pay for it all?

When you start by debunking student credit card myths, you’ll have the right information to find and apply for the best student credit card for you. So, if you’re thinking about your financial future now, it’s time to address some student credit card myths that might be holding you back.

Myth #1: Student credit cards aren't regular credit cards

In fact, student credit cards are regular cards. But it’s how they’re different that’s important for college students.

You usually don’t need an established credit history or credit score
Approval is possible with part-time employment income, and in some cases no income
Lower credit limits help teens eighteen or older build credit history responsibly and with less risk
Introductory APRs (annual percentage rates) help you save money during a specified time frame

After you graduate from college, some student credit cards won’t have any changes. This means the account's terms, conditions, and features remain consistent. For example, if you have the Discover it^® Student Chrome credit card, you’ll continue to earn 2% Cashback Bonus^® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.¹

Myth #2: You must be 21 to get a credit card

Good news! When you’re a student, you can get a student credit card starting at age eighteen. This is one of those myths about credit cards that could stop you from starting your credit journey early.

Note that different credit card companies have their own qualifications for student card approval. But, when you apply, you’ll need to provide your income to demonstrate your ability to make credit card payments. Discover factors the unique life stage of students into the card approval process. Because you may not have a credit history or have a limited student income, your approved card might have a lower credit limit than a regular card for someone with a full-time job and a good credit history.

Myth #3: You can't earn credit card rewards as a student

Actually, a great benefit of some student credit cards is that you can actually earn cash back when you make purchases. With the Discover it^® Student Cash Back card, for instance, students earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate. Discover also offers Cashback Match, where we’ll automatically match all the cash back you’ve earned at the end of your first year. There is no limit to how much we’ll match. That means you could turn $50 cash back into $100 or $100 cash back into $200.²

Myth #4: Only paying the minimum card payment can hurt your credit

Will it hurt your credit report to only pay the minimum due? Of course, it’s always better to make a minimum payment rather than a late or missed payment. However, if you carry those debts for too long and across all your cards it can increase your credit utilization ratio (how much available credit you’re using).

Your credit utilization ratio will include all your credit lines, including when you have a student loan debt, an auto loan, a personal loan, and any other credit cards you might have.

Plus, the longer you carry the debt, the longer you’re paying interest.

If you make purchases on your credit card that you can afford to pay off at the end of the month, you can quickly build good credit as a student while avoiding credit card debt.

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Myth #5: Being late on one payment won't hurt

This is one of the hardest myths. Your payment history makes up a whopping 35% of your credit score, and other penalties make it important that you pay your bill on time. But believing that one missed payment won’t hurt your credit score is a credit myth you can’t afford to believe.

In fact, missing just one payment can really hold you back from achieving new credit in the future because your credit history will show you might be a credit risk. Plus, there are other penalties to consider:

A credit card issuer might charge a late fee
Your student credit card purchase interest rate might increase
Missed payments recorded on your credit report could remain there for up to seven years

Did you know?

You can use the Discover credit card interest calculator to see what interest you'll owe on any credit card balance and how increasing your monthly payments may help you pay your debt down sooner.

Now that you know some of the common credit card myths, you also know how to build a positive credit history with a regular credit card built just for students. Building a good credit score with a student credit card is a smart way to start your financial footprint.

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