Student Credit Card Benefits and Requirements

For students navigating the world of higher education, a student credit card can be a valuable tool for managing finances and building credit. If you're a student who's looking to establish your credit history or a parent who wants to help your child develop positive financial habits, a student credit card could be a good first step. These cards offer unique benefits and features tailored to the needs of students.

What is a Student Credit Card?

A student credit card is a revolving line of credit geared toward students with no credit history. Like any other credit card, a student card allows you to make purchases and then repay the balance - plus any accrued interest and fees - at a later date. Many banks offer credit cards to college students in an effort to jumpstart their experience with credit.

Benefits of Student Credit Cards

There are many reasons why a student might consider getting a credit card. Getting a student credit card can be beneficial for a variety of reasons.

Building Credit History

College students often have little to no credit history, so it can be difficult for them to qualify for traditional credit cards. Student credit cards are intended to help new cardholders establish and build their credit history. They may be easier to qualify for than traditional credit cards. Responsible use of a student credit card can help students build a positive credit history, which is essential for future financial endeavors, such as renting an apartment or securing a loan. You'll also want to be sure that your payments will be reported to the three nationwide consumer reporting agencies (CRAs) - Equifax, TransUnion and Experian.

Rewards and Benefits

Many student credit cards offer rewards and benefits tailored to the needs and preferences of young adults, such as cash back on dining. Some offer low service fees or a 0% introductory APR, which allows you to make interest-free purchases until the introductory period ends. Some financial institutions partner with universities to offer special deals to their students.

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For example, some cards offer:

Cash Back Rewards: Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Earn a 2% Cashback Bonus® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.
Unlimited Cashback Match: Only Discover automatically gives unlimited Cashback Match to all new cardmembers: we’ll match all the cash back you’ve earned at the end of your first year. You could turn $10 cash back to $20. You could turn $50 cash back to $100. Get an unlimited dollar-for-dollar match of all the cash back you earn at the end of your first year, automatically.
Introductory APR: There’s a x% Introductory APR for your first x months. There’s a x% Intro APR for x months from the date of first transfer with a x% transfer fee, for transfers under this offer that post to your account by x. After the intro APR expires, your APR will be x% to x% based on your creditworthiness.
Other Perks: No Annual Fee: Keep more in your pocket with no annual fee. 24/7 Customer Service: Need help or have questions? Fast, secure mobile login: Discover mobile app users can log in with Touch ID or your 4-digit passcode to see your balance, FICO® Credit Score, and more. We’re giving away a $5,000 scholarship every month. NO PURCHASE NECESSARY.

Establishing Good Financial Habits

Using a student credit card responsibly can help students develop good financial habits, such as budgeting, tracking expenses, and paying bills on time.

Requirements for Student Credit Cards

Student credit cards are also not available to all borrowers. Most require applicants to be enrolled either full- or part-time in a two- or four-year college. When a student applies for a credit card, they undergo a basic application process that usually requires proof of enrollment in a school, income information (which can include part-time jobs or allowances) and personal identification.

Eligibility

As long as you’re enrolled in an institution of higher education, you can enjoy the less strict qualification criteria of a student credit card.

Application Process

Here's a breakdown of the application process:

Research the options available to you. There are many student credit cards available.
Know your credit score. Your credit score is the key to knowing what cards you could be approved for.
Go to the card’s issuer site and find the application.
Gather proof of your income or find someone to co-sign your application. If you are under the age of 21, you may be required to find an adult, typically a parent or guardian, who's willing to co-sign your application. Creditors use the co-signer's credit history to approve the student account. The co-signer then acts as additional insurance for the card.
Gather proof of your enrollment.
Apply for the card. Gather and input all necessary application information, such as your name, address and annual income.
Look out for an application decision. An application decision could be instant, or it could take a few days.
Make a payment plan. If approved, note the card’s payment due date to ensure you always pay on time and in full to avoid added interest charges.

If you’re under the age of 21, credit card issuers will typically require you to show proof of income, but for students, that proof requirement is usually more relaxed.

Alternatives if You Don't Qualify

What if you don’t qualify for a student card but are still hoping to build or rebuild your credit? Consider applying for a secured card or becoming an authorized user on a trusted cardholder’s account, instead. These cards require an initial security deposit, but are readily available to those with no credit history or a low credit score. Authorized users are added to another person’s credit card account, usually a trusted family member or spouse.

Potential Downsides

Like any credit card, student cards are not completely without risk. Some credit card beginners make the mistake of viewing a credit card as access to “free money,” but in reality, credit cards are among the most expensive ways to borrow.

Higher Interest Rates

Card issuers usually view students as high-risk borrowers, which often results in higher interest rates on student credit cards. Credit card APRs average over 20 percent right now.

Lower Credit Limits

Student credit cards often have lower credit limits. On top of high interest rates, issuers usually grant lower credit limits with student credit cards. There is no set credit limit as everyone's situation is different. Once you’re able to demonstrate your creditworthiness with a consistent, on-time payment history and responsible usage, your issuer may automatically increase your credit limit. Or, you can contact your issuer and request a higher credit limit.

Limited Duration of Benefits

Student credit cards are designed to benefit students. Once you graduate, you might be left with a card you don’t use.

Examples of Student Credit Cards

Here are a few examples of student credit cards and their features:

Capital One Quicksilver Student Cash Rewards Credit Card:
- Earn unlimited 1.5% cash back on every purchase, every day
- Early Spend Bonus: Earn $50 when you spend $100 in the first three months
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Lock your card in the Capital One Mobile app if it’s misplaced, lost or stolen
- Earn up to $500 a year by referring friends and family when they’re approved for a Capital One credit card
- Build your credit with responsible card use
- Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you
- Top rated mobile app
- Purchases intro APR N/A
- Balance transfer intro APR N/A
- Regular APR 18.49% - 28.49% (Variable)
- Annual fee $0
- Credit needed Average, Fair, Limited
Zolve Classic Credit Card:
- Get the Zolve Credit Card even without a Social Security Number(SSN) or prior credit history.
- Offers a credit limit of up to $15,000 to manage your finances smoothly
- Zero annual-fee credit card with a simple 5-minute online application process.
- Build your US credit score easily with responsible usage.
- Earn $15 welcome points after completion of tasks and milestone activities detailed in the application process
- Earn 1% cashback on every transaction or purchase.
- Reports to all three main credit bureaus: Equifax®, Experian®, and TransUnion®
- Purchases intro APR N/A
- Balance transfer intro APR N/A
- Regular APR 19.50% - 35.50% (Variable)
- Annual fee Zero
- Credit needed No credit history required
Capital One Savor Student Cash Rewards Credit Card:
- Earn unlimited 3% cash back at grocery stores (excluding superstores like Walmart® and Target®), on dining, entertainment and popular streaming services, plus 1% on all other purchases
- Early Spend Bonus: Earn $50 when you spend $100 in the first three months
- Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
- Enjoy no annual fee, foreign transaction fees, or hidden fees
- Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel
- Earn up to $500 a year by referring friends and family when they’re approved for a Capital One credit card
- Earn 8% cash back on entertainment purchases when you book through the Capital One Entertainment portal
- Build your credit with responsible card use
- Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you
- Top rated mobile app
- Purchases intro APR N/A
- Balance transfer intro APR N/A
- Regular APR 18.49% - 28.49% (Variable)
- Annual fee $0
- Credit needed Average, Fair, Limited

Responsible Use is Key

If you're considering a student credit card, just remember: The most important thing is to use your new card responsibly. Don't spend more than you can reasonably pay back and aim to make your debt payments on time, whenever possible. Paying your credit card bill on time and in full should always be your first priority.

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