Having a credit card hits you with lots of benefits – whether you use the regular card or a student card. If you are a college student, then owning credit cards are a great first step for you to build a good credit history. After graduation, you can apply the perks of credit cards in your career, which you are building from the past few years. A good credit history helps you to get a good job, rent a perfect apartment, or even buying a house. Not only that, but you will also get pretty good rewards and exclusive bonuses for using a student credit card.
These days, there is countless college student credit card available that provides different benefits such as in foodies, traveling, cashback, and more. Some of them also require a credit history, which is quite impossible for college students. So, if you are feeling overwhelmed about which card you should choose in college life, don’t worry, you came into the right article. We did research on the different college student cards and came to the final result. So today, we have listed the 6 best college student credit cards for you which you can use in 2020.
In a student life, credit card plays a vital role which helps you to develop a strong financial in the upcoming future. That’s why we also provided some tips regarding the student credit card so that you can be a responsible cardholder.
Why It’s Good to Build Credit as a Student?
In a student’s life, it’s not that necessary to build credit, but when you start at an early age, then it will help you in the future. Let’s say it’s just like your grades; if you maintain good grades, it will help you to get a good job after graduation. Just like that, when you keep building credit from the bottom, you can able to see good credit history.
A good credit hits you with lots of benefits like getting a house, job, rent a room, and more. Your credit score makes a huge impact on your credit history, which shows how responsible you are as a cardholder. If you conveniently handle your credit money, your credit history report will shine.
So, let’s see more about the benefits of building credit as a student.
Setting Up Your Utilities
Utilities are essential everyday things in our life. Suppose you are new in the town, and you are setting up your utilities. In that case, the companies will check your credit history; if they find a poor credit history, you might get in trouble. So make sure that you can pay the water and power utility company bills; otherwise, the utility companies will decline to work. That’s why a good credit history is necessary not for other people but also for students.
Borrowing Money
Suppose you are applying for a new credit card, personal loan, car loan, mortgage, and other loans, your credit history decides whether you are getting a loan or not. If you have good credit, then your request will be accepted, otherwise rejected. In addition, a good credit score can help you to lower the interest charge, which can save a certain amount of money.
Getting Hired
After you graduate from college, you need a job that can fulfill your basic requirement, right? So, having good credit can helps a lot in the hiring process. Some of the companies also check your credit history, especially when you are going to work in managing the financial work. There’s your good credit that comes in handy to get a job.
Renting an Apartment
When renting a new apartment, then your landlord will look at your credit history, whether you are a responsible person, to pay bills on time. If you are stuck in too much debt, it might be difficult for you to rent an apartment.
Starting a New Business
After your college graduation, you want to start a new business. When you ask for the vendors for a loan to start a new business, the vendors will first look at your credit history. In case they find a poor credit history, there is a high chance to reject your proposal.
So, if your dream is to start your own business in the future, try to build a good credit from today, which will lift you up in the future towards success.
6 Best College Student Credit Cards of 2020
Have a look at these best college student credit cards of 2020 and choose which suits you the best.
Deserve EDU Mastercard for Students [Best for International Students]
Deserve EDU Mastercard for students is best for the international student which is slightly different from other credit cards. A card relies on the financial document application and the algorithm, which measures the credit potential. If you are the first-time using a credit card, Deserve EDU is the best option to choose.
The cardholder also does not require any credit history or a social security number to access the card, which is often impossible with than regular card. Another best part of this credit card is that you don’t have to pay any annual charge for using a card. Users also don’t have to require a security deposit. To get a Deserve EDU Mastercard, a person must be 18 years old and should have a U.S bank account.
When we talk about the benefits, cardholders can get awesome rewards with 1% cashback on all purchases they made with a card. Students also get a full year Amazon Prime Student for free, which worth $59. You can pretty much save money with the subscription in Amazon Prime Students. It also lets you make three days free shipping along with the discount at whole food. If you are constantly watching the Prime video, and then you also get a certain discount if you use the Deserve EDU Mastercard.
With the good benefits like above, there are also a few drawbacks of Deserve EDU Mastercard. You either can transfer any balance or withdraw ant cash in advance. Cardholders also won’t get any sign-up bonus points, and there are also no special financing offers. Besides, if you make any late payment, then a credit card issuer may charge certain fees.
Card Purchase Cost: None
Welcome Bonus: $0
Annual Fee: $0
Foreign Transaction Fee: None
APR: 18.7% variable
Citi Rewards+ Student Card [Best for Bonus and Purchase]
Citi Rewards+ Student Card is the best choice as a starter card for college students who make a frequent purchase. A card offers automatically rounds up features in every purchase; points are rounded up to the nearest 10 points with no cap. So, whenever you make a purchase of $2, you earn 10 points, and for $21 purchase, you earn 30 points, sound interesting right? You can maximize your rewards without doing any additional activity.
A card is best for those students who have a good credit score, like 690 or higher. But, there is another disturbing thing about the card whether applicants can get a card with low credit or not. Besides, it’s a pretty good card.
Cardholders also get a strong reward program in the gas station and in the supermarket. You can earn 2 thankyou points per $1 you spend for the first $6,000 spent per year. Likewise, cardholders also get1 ThankYou points if they spend $1 on all purchases. Not only that, but there is also a sign-up bonus point of 2,500 when you spend $500 in purchase within 3 months of opening your card.
In addition to rewards, you even get 10% points back for the first 100,000 ThankYou points which you redeem per year. Likewise, when you redeem 25,000 points each year, you will earn 2,500 points back. These earned points are good enough for a $25 gift card.
However, students must be 18 years old and currently register in college to qualify for Citi Rewards+ Student Card.
Card Purchase Cost: None
Welcome Bonus: 2,500 points after spending $500 within 3 months of account opening
Annual Fee: $0
Foreign Transaction Fee: 3%
APR: 14.49%– 24.49% variable
Discover it Student Chrome [Best for Gas and Restaurants]
If you want a good rewards program, then Discover it, Student Chrome is the most exception card to many students. It is also the best college student cards which you can use. A card comes with both benefits and the best rewards when you fill your gas tank and goes on dinner outside, you choose. Discover it chrome will automatically calculate all the cashback rewards which you have earned at the end of the fiscal year. Besides, you don’t have to pay any charge to get a bonus; students don’t have to overspend to receive a bonus.
Discover it Student Chrome is registered to the major three bureaus (Equifax, TransUnion, and Experian), which helps the students to build their credit. Likewise, a card comes with the security features where a cardholder can block the new purchase if their card gets stolen. In addition, you also get free overnight shipping to replace your stolen card.
When we talk about rewards, a cardholder gets 2% cashback on a purchase up to $1,000 each quarter and, after that, gets 1%. And 1% cashback in all kinds of purchased items. There is also a reward for good grades in which a student gets $20 statement credit for 5 years if their GPA is 3.0 or higher.
Discover it chrome also won’t charge for your first late fee.
Card Purchase Cost: None
Welcome Bonus: Discover automatically matches all the cash back you earned at the end of the first year
Annual Fee: $0
Foreign Transaction Fee: None
APR: 0% for the next 6 months, 10.99% on balance transfer for next 6 months, after that 12.99% – 21.99% variable
Bank of America Travel Rewards for Students [Best for Travel]
If you love to travel during your vacation, then Bank of America Travel Rewards for students hit you with lots of benefits during your travel. In fact, it is the best card if you are studying abroad and planning to go on vacation for the summer holiday.
Using the Bank of America Travel Rewards card, you can build your credit score, which helps a lot from the starting. A card itself named as a travel card, so definitely, students get travel rewards. When you sign-up for the first time, you get a bonus of 25,000 points when you spend $1,000 in purchase within the first 90 days of account opening. Not only that, if you spend $1 every day on the purchase, then you earn 1.5 points. In addition, when a student book travels via Bank of America Travel Center, they will earn 3 points per $1 spend.
Besides, a cardholder also gets 10% customer points as being a part of the Bank of America account.
You can redeem your credit card points for cash, travel, and gift cards. In addition, your earned points won’t expire as long as you don’t close your account. That’s pretty impressive, isn’t it?
Card Purchase Cost: None
Welcome Bonus: 25,000 points
Annual Fee: $0
Foreign Transaction Fee: 3%
APR: 14.99%– 22.99% variable
Discover it Student Cash Back [Best for Cash Back]
Discover it Student Cash Back card is the best among the student card, which offers generous cashback. A card is a well-rounded card where students can build up the credit score by using the benefits of the card. Your payment is reported to the major three bureaus (Equifax, Experian, and TransUnion), which are even greater to maintain the credit.
The rewards program of the Discover it Student cashback is much better than other cards. You get $20 statement credit for good grades if your GPA is 3.0 or even higher than for 5 years. Not only that, but you also earn up to 5% cash back in the following category, such as Amazon, filling gas, restaurants. The cashback is up to $1,500 max each quarter after that 1%. In addition, when you make a purchase of any items, you get 1% cashback.
Besides, if you forget to pay the monthly bill, there is no any late payment charge fee for the first time. After that, you have to fulfill certain charges whenever you make a late payment. So be careful when it comes to the monthly bill payment.
To qualify for the Discover it Student Cash Back credit card, a student must be 18 years old and should be a U.S citizen.
If we look at other things except for the reward, a card has some drawbacks, like if you want to apply for the card outside the U.S, it might cause some issues for you. Not only that, but the bonus reward category of the card also requires quarterly activation.
Card Purchase Cost: None
Welcome Bonus: It automatically matches all the cashback which you have earned.
Annual Fee: $0
Foreign Transaction Fee: None
APR: 0% for the next 6 months, 10.99% on balance transfer for next 6 months, after that 12.99% – 21.99% variable
Journey Student Rewards from Capital One [Best for Flat-rate Cash Back and Building Credit]
Journey Student Rewards is a good option for students who have limited or average credit. If the students want to build their credit, plus earn some cashback, this card can be a handful of options.
Though the name says the student card, actually, you don’t need a student to apply for this card. So anyone can apply for the Journey Student Rewards card, which is why it is known as the best credit card for building credit.
Cardholders get 1% cashback on every purchase they made, and it will get boosted to 1.25% if you pay your bill on time. In addition, cardholders also get a credit line increment when they make their first five-month payment on the due date. However, if you pay your bill after the due date, there are no points which you will earn. You can easily get a bonus because you only have to make a minimum payment.
As the card is good for the building credit but, if you continuously rely on the minimum, it might cost you in the future. We recommended paying more than the minimum; otherwise, you cannot build the best credit.
When it comes to redeeming the rewards, your cashback is automatically redeemed in the form of a statement credit. In other words, your credit card balance will get lower. However, you can also manually redeem the cashback if you don’t want to redeem it automatically.
Card Purchase Cost: None
Welcome Bonus: Get access to the higher line after you make your first 5 monthly payments on time.
Annual Fee: $0
Foreign Transaction Fee: None
APR: 26.99% variable
How to Use Your College Student Credit Cards For an Advantage?
If you are planning for a new credit card and then after getting one, you can use it to gain many advantages. Credit cards are not only used for purchasing items but also can be used to build your credit. Here’s how you can do it:
Pay Bill on Time Each Month
When you pay a bill on time, you can escape from the higher interest charges. How? Whenever you pay a monthly bill on time, the credit company won’t charge any further interest. This way, you can save more money to pay your debt. You can also buy small essential things which you only require to save money and for the bill payment.
Besides, if you are planning to make a minimum payment of your credit card, then don’t; it will bring you more trouble.
More>> What Happens When You Make a Minimum Payment of Credit Card
Make Purchase Which You Only Can Afford
Buying unnecessary items can hit you more with debt. The more items you buy, the more your debt will increase. Later on, you will find yourself in a pool of debt where you can’t swim and even do anything. So, think carefully before you make any purchase with your credit card.
Maintain an Available Portion of the Credit
Suppose, your credit limit is $5,000, so it’s not necessary to use the full amount. Keep your credit card balance under 30% of your limit to maintain a good credit utilization ratio. What this does is protect your credit score, and as a student, you might don’t get a high credit limit. That’s why to use your credit card balance like a responsible person.
Be Smart With Your Rewards and Sign-up Bonus
Choosing a credit card that comes with a sign-up bonus and rewards is ideal for the students. You can use the bonus to purchase the items which help you to save some money in your wallet.
Keep Your Account Open
If you don’t have an annual fee charge, it’s better to leave your account open. What this does is maintain the length of your credit history and credit score. But, if you close your account, it might hurt your credit score, which you have worked so hard to build from the beginning.
What to Do With a Student’s Credit Card After Graduation?
When you build a strong credit score, you can get lots of regular and excellent rewards and features. But you might be thinking what to do to your College student credit cards after graduation, right? So, here are a few things which you can implement:
Continue Using a Card
You can keep using your card even though you graduate from college. If your credit card doesn’t charge any annual fee, there’s nothing wrong to continue using it. It helps to build a good credit history.
Replace Your Card
In case you are paying an annual fee for a student card, and you are planning to close it, then apply for the other better card like a regular card.
Upgrade Your Card
You can ask your card issuer whether you can upgrade your card or not. It’s like a product change where you move from the current card to another better card. This helps the cardholders to keep the previous credit history even though they switch to another card. Plus, your credit score will be lengthy
Frequently Asked Questions
Here’s we have some FAQ’s regarding the College student credit cards down below.
What’s the Difference Between the Student Credit Cards and a Regular Credit Card?
Well, a college student card is a lot easier to qualify than a regular credit card. That’s because student cards are specially designed for those people who are starting out with low credit. If a cardholder has a poor credit history in a regular credit card, then it might be hard for them to apply for a new one. But in case of student credit card, it might not be a problem in terms of credit history – because being a student, we don’t have many sources of income, and we are studying in a college to build our career.
Besides, student credit card often offers a good feature like a special interest for new people to motivate them for responsible behavior. The features include a bonus if they have good grades, rewards when paying a bill on time, and more. Students can also get a free credit score and other tools to learn how to be a responsible cardholder.
However, as I already said, a student card is not for a person who has a poor credit history. If your bad credit reaches a certain limit where you can’t minimize, then look for another credit card instead of rebuilding the current one. A credit card like a secured one can help a lot to improve your credit history.
Can I Easily Get a Student Credit Card?
Getting a student credit card can be difficult for those who don’t have a significant income source. Besides, if you also have a student loan, it might also cause a bad impression in your credit history. So, if you are requesting a new one, make sure to clear all the debt and loans.
Back in days when College students can easily get credit cards, those who have a high earning potential. A credit card issuer easily accepts the application and even offers different incentives like free pizza or a t-shirt for opening a new account. Lots of people get the credit card like this way – but ended up in a stack of debt.
Due to these kinds of marketing, a Credit Card Act 2009, federal law prohibited issuers from offering to people under 21 unless they have an independent source of income.
Can a College Student Get Credit Cards With No Job?
Well, this is the most raised question from most of the college students. If you have a job, then it will be a lot easier to being approved for college student credit cards. Having a job is good, but the most important thing is your income. If you are under 21, then you have to show your independent source of income like from your job, scholarship, allowance, and you will also need a co-signer for the application. Besides, if you are 21 and older than that, you can show any source of income.
How Many Credit Cards a College Student Should Have?
If you are applying for a new credit card, one would be enough for you as a college student. Having only one card can also prevent excessive debt, which is quite helpful in building your credit score.
Most of the college students didn’t know much about the credit card and its working process and ended up in the pool of debt. This is the first mistake many college students make in their careers.
What is a Good Credit Score for College Students?
According to FICO, credit card score ranges from 600 to 750, which are considered as good credit. Likewise, 751 to 850 are likely to be the best credit score for the credit card. So, for a student, a score of 700 or above is considered a good score. Hence, to get more credit, first, you must manage your credit history.
How Old Do I Have to Apply For a Student Credit Card?
In general, students need to be 18 years old to register the account in their own name. If you are below 18, you can authorize your users in someone’s account like your parents or close friend.
Besides, there are also specific credit card rules for those applicants under the age of 21. If a person is under 21, he/she must show the independent source of income. You can also use the co-sign (a person who agrees to pay your bills) for your application. All these rules are designed by the federal law to prevent the issuers from giving a credit card who doesn’t have any means of paying the debts.
Likewise, for over 21 years old person, they show any source of income such as from parents, loved one or other close member). But it’s important to show your income as per a rule of a credit card.
Conclusion
Finally, these are the above 6 best college student credit cards of 2020. We compare the above cards in terms of features, rewards program, credit limit, standards APR, Welcome bonus, foreign transaction fee, including the annual fee. Based on these factors, you can choose the desirable card which suits you the best in your college life.
We also provided answers to some of the frequently asked questions regarding the student credit card. I hope you may already find answers to your following questions after going through the whole article. If you haven’t, make sure to read the whole article.
So, it’s important for the student to apply for the credit card even though you don’t have a little bit source of income. You can pretty much build a good credit, which hits you with lots of benefits after your graduation. And also, control your credit card spending and pay your bills on time to avoid late payment charges.
Have you decided which of the above card you are going to grab? Let us know in the comment section down below.
Happy surfing!
