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 use1, 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. This deposit acts as collateral that “secures” the card 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 guide.
Student vs Secured Credit Cards: Which to Choose for your First Credit Card?
Key points about: Student vs Secured Credit Cards
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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 card issuer upfront.
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Both types of cards have their own pros and cons, and the right choice for you depends on your needs and goals.
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You’ll need to meet certain eligibility requirements to apply successfully for either type of card.
What is the difference between a student and a secured credit card?
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. You’ll need proof of enrollment at a college, community college, or university to qualify for a student credit card, while anyone 18 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 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 low 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 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 $0 annual fees.
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.
Earn top-tier rewards and build a credit history4 with a Discover student credit card![Discover it credit card]()
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 generally 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, no credit score is 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.
Which credit card should you choose?
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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- Build/Rebuild Credit History (Secured Card): Discover reports your credit history to the three major credit bureaus so it can help build/rebuild your credit if used responsibly. Late payments, delinquencies or other derogatory activity with your credit card accounts and loans may adversely impact your ability to build/rebuild credit.
- Secured Card Deposit Range: You must make a minimum security deposit of $200 (or more, in increments of $100 up to $2,500), which will equal your requested credit limit. Discover will determine your maximum credit limit by your income and ability to pay.
- Getting your deposit back: Monthly reviews start your seventh month as a customer. We will refund your security deposit if you have made all payments on time for the last six consecutive billing cycles on all your Discover accounts including any loans, and you've remained in “good status” on all credit accounts you are responsible for whether they are Discover accounts or not. “Good status” means: (1) your credit report shows no delinquencies, charge-offs, repossessions, or bankruptcies for the six months prior to our review; and (2) your Discover Secured Card is not in a prohibited status at the time of our review, including, but not limited to: closed, revoked, suspended, subject to tax levy, garnishment, deceased, lost/stolen, or fraud. Monthly reviews may be delayed if you change your payment due date. When you qualify to upgrade to a standard, ‘unsecured card’, Discover will also consider you for a credit line increase. We typically process your refund in 2-3 business days based on your delivery preference. If you close your account and pay in full, we’ll return your deposit within two billing cycles plus ten days.
- Build Credit History (Student Card): Discover reports your credit history to the three major credit bureaus so it can help build your credit if used responsibly. Late payments, delinquencies or other derogatory activity with your credit card accounts and loans may adversely impact your ability to build credit.
- No Credit Score Required to Apply (Student): Based on the preceding 12 months of Discover Student credit card application data, applicants without a credit score may qualify. You must meet other applicable underwriting criteria. When we evaluate your creditworthiness, we consider all the information you provide on your application, your credit report, and other information. If you have a credit score, we may use that in our evaluation.
- No Credit Score Required to Apply (Secured): Based on 2022 Discover it Secured credit card application data, applicants without a credit score may qualify. You must meet other applicable underwriting criteria. When we evaluate your creditworthiness, we consider all the information you provide on your application, your credit report, and other information. If you have a credit score, we may use that in our evaluation.
- Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.