How to Choose the Best Student Credit Card for Your Needs

Student Credit Card – Student credit cards are a great way to build credit, earn rewards, and enjoy other benefits while you are in college. However, not all student credit cards are created equal. Some offer better features, rates, and rewards than others. How do you know which one is the best for you?

In this article, we will compare some of the best student credit cards of 2023, based on various criteria such as rewards, fees, interest rates, and credit requirements. We will also give you some tips on how to use your student credit card responsibly and avoid common pitfalls.

What is a Student Credit Card?

A student credit card is a type of credit card that is designed specifically for college students who have little or no credit history. Student credit cards usually have lower credit limits, higher interest rates, and fewer perks than regular credit cards. However, they also have some advantages, such as:

Easier approval: Student credit cards are more accessible to people with limited or no credit history, as long as they can provide proof of income or a co-signer.
Credit building: Student credit cards can help you establish and improve your credit score, which will make it easier for you to qualify for better credit cards, loans, and other financial products in the future.
Rewards: Some student credit cards offer cash back, points, or miles on your purchases, which can help you save money or travel for free.
Benefits: Some student credit cards offer extra benefits, such as free access to your credit score, fraud protection, rental car insurance, or extended warranty.

How to Compare Student Credit Cards

When choosing a student credit card, you should consider several factors, such as:

Rewards: How much cash back, points, or miles can you earn on your purchases? What categories of spending earn the highest rewards? How can you redeem your rewards?
Fees: How much does the card charge for annual fees, foreign transaction fees, late payment fees, or other fees?
Interest rates: What is the annual percentage rate (APR) for purchases, balance transfers, and cash advances? How long is the grace period before interest starts accruing? Does the card offer an introductory 0% APR offer?
Credit requirements: What is the minimum credit score or income needed to qualify for the card? Do you need a co-signer or a security deposit?
Benefits: What other perks does the card offer, such as free credit score access, fraud protection, rental car insurance, or extended warranty?

Best Student Credit Cards of 2023

Based on our research and analysis, here are some of the best student credit cards of 2023:

Best Overall Student Card – Capital One SavorOne Student

The Capital One SavorOne Student Cash Rewards Credit Card is our top pick for the best overall student card. It offers generous rewards on dining and entertainment purchases, as well as a welcome bonus and no annual fee.

Rewards: Earn 10% cash back on Uber and Uber Eats purchases (through 11/14/2024), 8% cash back on Capital One Entertainment purchases, 3% cash back on dining and grocery stores (excluding superstores like Walmart and Target), 3% cash back on popular streaming services and entertainment, and 1% cash back on all other purchases.
Welcome bonus: Earn a $50 cash bonus after spending $500 in the first 3 months.
Annual fee: $0
Interest rate: 19.99% – 29.99% variable APR
Credit requirements: Fair to good (580 – 740)

Best Cashback Card – Discover It, Student,

The Discover it Student Cash Back is our top pick for the best cashback card for students. It offers up to 5% cash back on rotating categories each quarter (up to $1,500 in purchases), plus unlimited 1% cash back on all other purchases. It also matches all the cash back you earn in the first year.

Rewards: Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations (up to $1,500 in purchases when you activate), plus unlimited 1% cash back on all other purchases.
Welcome bonus: Cashback Match™ – Discover will match all the cash back you earn at the end of your first year automatically.
Annual fee: $0
Interest rate: 18.24% – 27.24% variable APR
Credit requirements: No credit history

Best Flat Rate Rewards Card – Quicksilver Student

The Capital One Quicksilver Student Cash Rewards Credit Card is our top pick for the best flat rate rewards card for students. It offers a simple and consistent 1.5% cash back on all purchases, plus a welcome bonus and no annual fee.

Rewards: Earn unlimited 1.5% cash back on all purchases.
Welcome bonus: Earn a $50 cash bonus after spending $500 in the first 3 months.
Annual fee: $0
Interest rate: 19.99% – 29.99% variable APR
Credit requirements: Fair to good (580 – 740)

Best Credit Building Card for Students – Chase Freedom Student

The Chase Freedom Student Credit Card is our top pick for the best credit building card for students. It offers a flat 1% cash back on all purchases, plus a $20 annual reward and a credit limit increase after making 5 on-time payments in the first 10 months.

Rewards: Earn unlimited 1% cash back on all purchases.
Welcome bonus: Earn a $50 bonus after making your first purchase within the first 3 months.
Annual reward: Earn a $20 bonus each account anniversary year.
Annual fee: $0
Interest rate: 19.99% variable APR
Credit requirements: No credit history

Best Travel Rewards Card – Bank of America Travel Rewards Student

The Bank of America® Travel Rewards credit card for Students is our top pick for the best travel rewards card for students. It offers unlimited 1.5 points per dollar spent on all purchases, plus a welcome bonus and no annual or foreign transaction fees.

Rewards: Earn unlimited 1.5 points per $1 spent on all purchases everywhere, every time and no expiration on points.
Welcome bonus: Earn 25,000 bonus points after spending $1,000 in the first 90 days, which can be redeemed for a $250 statement credit toward travel purchases.
Annual fee: $0
Interest rate: 18.24% – 28.24% variable APR
Credit requirements: Good to excellent (670 – 850)

How to Use Your Student Credit Card Responsibly

Getting a student credit card can be a great way to build credit and earn rewards, but it also comes with some responsibilities and risks. Here are some tips on how to use your student credit card responsibly:

Pay your bill on time and in full every month. This will help you avoid interest charges, late fees, and negative impacts on your credit score.
Keep your balance low. Ideally, you should use less than 30% of your available credit limit at any given time. This will help you maintain a good credit utilization ratio, which is an important factor in your credit score.
Monitor your transactions and statements. Check your online account regularly and review your monthly statements for any errors or fraudulent charges. Report any suspicious activity to your card issuer immediately.
Avoid cash advances and balance transfers. These transactions usually come with high fees and interest rates, and they do not earn rewards or benefits. They can also hurt your credit score by increasing your credit utilization ratio.
Take advantage of your card’s features and benefits. Use your card’s free access to your credit score, fraud protection, rental car insurance, or extended warranty when applicable. These can help you save money and protect yourself from unexpected expenses.

In conclusion, student credit cards are a useful tool for college students who want to build credit, earn rewards, and enjoy other benefits. However, not all student credit cards are the same. You should compare different cards based on their rewards, fees, interest rates, credit requirements, and benefits.

We have reviewed some of the best student credit cards of 2023 in this article, but you should do your own research and find the card that suits your needs and preferences best.

Remember to use your student credit card responsibly and pay your bill on time and in full every month. This will help you avoid debt, improve your credit score, and prepare you for a brighter financial future.

Frequently Asked Questions (FAQ): How to Choose the Best Student Credit Card for Your Needs

How do I qualify for a student credit card?

To qualify for a student credit card, you must be at least 18 years old and enrolled in a college or university. You also need to have a source of income or a co-signer who can pay your bills if you can’t. Some student credit cards may also require a minimum credit score or a security deposit.

How do I compare student credit cards?

When comparing student credit cards, you should consider several factors, such as rewards, fees, interest rates, credit requirements, and benefits. You should look for a card that matches your spending habits, has low or no annual fees, offers a low or 0% introductory APR, and reports your payments to all three major credit bureaus.

What are the benefits of having a good credit score?

Having a good credit score can help you in many ways, such as:

Qualifying for better credit cards, loans, and mortgages with lower interest rates and fees.
Saving money on insurance premiums, utility deposits, and cell phone plans.
Renting an apartment or a car without a co-signer or a large deposit.
Getting a job or a security clearance that requires a credit check.

What are the risks of having a bad credit score or no credit history?

Having a bad credit score or no credit history can hurt you in many ways, such as:

Being denied or charged more for credit cards, loans, and mortgages.
Paying more for insurance premiums, utility deposits, and cell phone plans.
Having difficulty renting an apartment or a car without a co-signer or a large deposit.
Missing out on job or security clearance opportunities that require a credit check.

How can I improve my credit score or build my credit history?

You can improve your credit score or build your credit history by following these steps:

Get a student credit card or a secured credit card and use it responsibly.
Pay your bills on time and in full every month.
Keep your balance low and avoid maxing out your credit limit.
Monitor your credit report and dispute any errors or fraud.
Apply for new credit only when you need it and avoid opening too many accounts.