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Student credit cards and young credit

Choosing a student credit card

Consider card rewards and fees before deciding which is best for you

Summary

Student credit cards offer a great opportunity to test out card features and see if they align with your lifestyle, so make sure to pick one with features that match your spending habits.

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Several new players have emerged on the student credit card market over the last few years. Chase debuted the Chase Freedom® Student, Chase’s first credit card designed for students, in 2019, and Capital One unveiled two competitive student cards in August 2021. These new additions bring a lot to the table but may make choosing a starter credit card even harder.

Student credit cards offer a great opportunity to test out card features and see if they align with your lifestyle, but they can vary greatly. So how do you decide which one is best for you?

Student cards are built with those new to credit in mind, so they often come with more modest earning rates and higher interest rates. Nevertheless, many offer valuable benefits that can help you learn how to make on-time payments, build your credit history and score and start earning points or cash back.

Decide what feature is best for you

The first step before choosing a student card is deciding what feature is most important to you. Some offer rewards programs that let you rack up points or cash back and others have more manageable interest rates and fees – as a baby step into credit card payments. Unfortunately, student cards typically excel in one of these areas and not both.

Student card features to look for

  • Rewards – Cash back, points or airline miles are a great incentive to use your card responsibly, especially when you earn them for your most frequent purchases, like groceries or gas. Sign-up bonuses are worth considering, too.
  • Late payment fee waivers – Most credit cards charge a fee for late payments, but some student cards will waive the fee once or more.
  • No foreign transaction fees – If you plan to travel or study abroad, you can save money using a card with no foreign transaction fees.
  • Auto-pay or payment reminders – If you’re worried about forgetting to pay your bill, the ability to set automatic payments can reduce your stress. Payment reminders can be helpful, too.
  • No penalty APR – When you’re a certain number of days late on paying your statement, most credit cards will trigger the penalty APR, which is higher than the regular APR. If you’re worried about making late payments, a card with no penalty APR could be a good safeguard.
  • Low interest rate – If you pay your statement balance in full each month, your interest rate doesn’t matter much. But if you do carry a balance, you’ll want to look for a card that will minimize interest charges.
  • 0% introductory APR – If you’d like a few months to not worry about interest charges while you pay off a large purchase or get in the habit of making payments on time, a card with a 0% intro APR will work in your favor.
  • Automatic review for a credit line increase – Most student credit cards will start out with a low credit limit, often under $1,000. Some student card issuers will automatically review your account for an increase after several months, which can improve your credit score.
  • Financial education resources – Budget management tools and credit score monitoring are common resources offered by student cards, which can be helpful if you’re focused on building healthy habits.

You might focus on rewards rate if:

  • You feel confident about making your monthly payments on time
  • You intend to pay off your balance in full each month
  • You’re excited about earning cash back or points
  • You might focus on beginner-friendly features if:
  • You could use some leniency when it comes to penalties and fees, like late payment fees
  • You may carry a balance from time to time and could benefit from a lower interest rate
  • Your main goal is to build your credit and establish healthy financial habits

Depending on which card features make the best sense for your spending – whether you are seeking practice budgeting and making monthly payments or the ability to stockpile rewards – you can then narrow down your options.

See related: Student credit cards: The definitive guide

Best student cards for low rates and fees

If you are looking for an introduction to credit card ownership that won’t charge you steep rates and fees while you get accustomed to making monthly payments, the following student cards might be best for you.

CardRewards rateOther features
Discover it® Student chrome
  • 2% cash back at gas stations and restaurants (on up to $1,000 in purchases per quarter, 1% thereafter)
  • 1% cash back on general purchases
  • Matches cash back at end of first year
  • $20 statement credit every year for good grades (3.0+ GPA, up to 5 years)
  • No penalty APR
  • 0% intro APR on new purchases and 10.99% on balance transfers for first 6 months (12.99% – 21.99% variable APR thereafter)
  • No fee for the first late payment (up to $40 thereafter)
BankAmericard for StudentsNone
  • 0% APR on balance transfers made within 60 days of account opening and new purchases for 18 billing cycles (12.99%-22.99% variable APR thereafter)
  • No penalty APR
Discover it® Student Cash Back
  • 5% cash back on each quarter’s activated rotating categories (on up to $1,500 in purchases)
  • 1% cash back on general purchases
  • No foreign transaction fees
  • 0% intro APR on new purchases for six months (12.99%-21.99% variable APR thereafter)
  • First late payment fee is waived (up to $40 thereafter)
  • No penalty APR
  • Matches cash back at end of first year
  • $20 statement credit every year for good grades (3.0+ GPA, up to 5 years)

All of these cards offer good introductory APRs so you can get used to making payments without worrying about racking up significant interest charges. Additionally, none of them charge a penalty APR, so your rate won’t skyrocket if you miss a payment. However, while some of these cards do offer a rewards program, none of them are particularly lucrative.

Best student cards for rewards

If you aren’t as worried about the rates and fees and are excited to begin earning card rewards, there are also plenty of cards that introduce students to the rewards card space. Whether you prefer flexible Chase Ultimate Rewards, Citi ThankYou points or cash back, there are plenty of student cards that offer good earning rates.

CardRewards rateOther things to know
Capital One Quicksilver Student Cash Rewards Credit Card1.5% cash back on every purchase
  • No foreign transaction fees
  • Extended warranty coverage for purchases
  • Price protection
  • Automatic consideration for a higher credit line after six months
  • Access to CreditWise, Capital One’s credit monitoring service
Discover it® Student Cash Back
  • 5% cash back on rotating categories that you must enroll in each quarter (on up to $1,500 in purchases per quarter, then 1%)
  • 1% cash back on other purchases
  • Matches cash back at end of first year
  • $20 statement credit every year for good grades (3.0+ GPA, up to 5 years)
  • Automatic consideration for a higher credit line after six months
Citi Rewards+℠ Student Card
  • 2 points per dollar at supermarkets and gas stations (up to $6,000 in purchases per year, then 1 point per dollar)
  • 1 point per dollar on other purchases
  • Every purchase rounded up to nearest 10 points ($2 soda earns 10 points, $13 movie ticket earns 20 points)
  • 10% points back on ThankYou points you redeem (up to 100,000 points per year)
  • 2,500 bonus points if you spend $500 in first 3 months
Capital One SavorOne Student Cash Rewards Credit Card
  • Unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart and Target)
  • 8% cash back onVivid Seats (through January 2023)
  • 1% cash back on all other purchases
  • No foreign transaction fees
  • Automatic consideration for a higher credit line after six months
  • Access to CreditWise, Capital One’s credit monitoring service

These cards are all great options for rewards seekers as they offer good rewards rates or an introduction into some of the most valuable card rewards programs. On the downside, many have higher APRs or fees than cards without a rewards program.

What if you don’t qualify for a student card?

If you have no credit history and don’t qualify for one of these student credit cards, you still have a few other options. If a parent is willing to add you to one of their credit cards as an authorized user, that is one way to boost your credit history without qualifying for a credit card for yourself.

See related: What’s the minimum age to be an authorized user?

Many secured credit cards are also available to users with no credit history. While these cards usually don’t have any sort of rewards program and require a deposit, they can help steadily improve your credit history, so you can qualify for a better card down the line.

See Related: First credit card dilemma: Student card vs. secured card

Final thoughts

While there aren’t as many cards available for students as there are general rewards cards, there are still plenty of good options for new cardholders. Whether you are looking for a card that teaches good credit habits and goes easier on the fees or one that lets you start racking up rewards, you can find a student card that matches your lifestyle.

See related: When, why, how should you graduate from a student credit card to a regular card?

The Bank of America content in the post was updated on August. 19, 2021. 

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

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Credit Card Rate Report
Business
14.16%
Airline
15.46%
Cash Back
16.23%
Reward
15.94%
Student
16.78%

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