Banks desire long-term customers, but they don’t want to lend money to those who can’t pay it back. Students at college are at a fork in the road. As a result of this predicament, credit, one of the most essential building blocks for the future, maybe difficult to come by.
Credit cards cannot be provided to anyone under the age of 21 unless a parent or guardian cosigns for them or they have an independent income, according to the Credit CARD Act of 2009.
Student credit cards, with lower credit limits and benefits designed for college students, can serve as a bridge to more valued credit offers in the future.
How do we select the best student credit cards?
Welcome bonuses, fees, prizes, and other perks were used to select the top student cards. We’ve also paid close attention to APRs and other elements that have a negative impact on students (who are more likely to have little knowledge and experience with credit cards) when they make mistakes when learning about credit and credit cards.
However, what is ideal for the majority of students may not be the best option for you. Before determining which cards will best help you reach your financial goals, do your homework.
Let’s take a look below at some of the best student credits of January 2023.
Best Student Credit Cards of January 2023
1. Discover it® Student Cash Back
Annual fee: $0
Rewards rate: 1%-5%Cashback
Intro offer: Cashback Match™
Recommended Credit Score: 630-689(Average)
Discover is offering an unlimited cashback match. At the end of your first year, Discover will automatically match all of your cashback! As a result, you may turn $50 into $100. Alternatively, you may turn $100 into $200. There are no restrictions on how much you can spend or how much you may earn. There was only a dollar-for-dollar match.
Each quarter, get 5% cashback at a variety of locations, including Amazon.com, grocery stores, restaurants, petrol stations, and when you pay with PayPal, up to the quarterly maximum when you activate. Plus, automatically get an unlimited 1% cashback on all other purchases.
2. Chase Freedom® Student credit card
Annual fee: $0
Rewards rate: 1%Cashback
Intro offer: $50
Recommended Credit Score: 690-850(Good – Excellent)
After your first purchase during the first three months of activating your account, you’ll receive a $50 bonus.
On all purchases, you’ll get 1% cashback. There is no annual fee for this card. For up to 5 years, you can earn $20 in Good Standing Rewards after each account anniversary. With Chase Credit Journey, you can get a free credit score.
After making 5 on-time monthly payments within, your credit limit will be increased. When credit standards are met, the account will be open for 10 months. There is no minimum amount to redeem for cashback. As long as your account is open, your Cash Back benefits will not expire.
3. Discover it® Student chrome
Annual fee: $0
Rewards rate: 1%-2% Cashback
Intro offer: Cashback Match™
Recommended Credit Score: 630-689(Average)
Discover is the only place where you can get an unlimited cashback match. At the end of your first year, Discover will automatically match all of your cashback! As a result, you may turn $50 into $100.
Alternatively, you may turn $100 into $200. There are no restrictions on how much you can spend or how much you may earn. There was only a dollar-for-dollar match.
Earn 2% cashback on up to $1,000 in combined purchases at gas stations and restaurants each quarter. Plus, automatically get an unlimited 1% cashback on all other purchases.
4. Bank of America® Travel Rewards for Students
Annual fee: $0
Regular APR %: 13.99% – 23.99%
Recommended Credit Score: 670-850(Good – Excellent)
Because of the high earning rate on its rewards programme, which you can then redeem for flights, hotels, vacation packages, cruises, rental cars, or baggage fees, the Bank of America Travel Rewards for Students is our pick for the best overall student card and best student travel card.
It also features a low annual fee and an extended introductory APR on purchases, which contribute to the card’s high rating. Furthermore, the absence of foreign transaction fees makes this card excellent for student travel outside of the United States.
Earn decent travel rewards (1.5 points per dollar spent) with no tiers to manage. Purchases can be paid off over a 12-month period with no interest. Foreign travel is welcomed.
Frequently Asked Questions About Student Credit Cards
Is Having a Credit Card for College Students a Good Idea?
If not utilised correctly, a credit card, like any other instrument, can become problematic. For the majority of students, the advantages of using a credit card exceed the disadvantages. Building a positive credit history at college can provide a student a major leg up when it comes to qualifying for different types of credit after graduation.
Car loans and mortgages are obvious future credit demands, but prospective landlords and employers often review credit records and scores. A terrible credit card experience for a student could be costly both financially and in terms of the student’s credit history.
Is it possible to have multiple student credit cards?
It is feasible, although not recommended, to obtain numerous student credit cards. With little expertise handling credit cards, opening several student credit card accounts is a recipe for accumulating more credit card debt than is prudent and mismanaging multiple accounts.
The goal of a student credit card is to establish a credit history rather than to have access to large amounts of credit. Almost anyone’s needs can be met by many of the good cards in this category.
As a result, it’s great if you can only find one card that does so.
What Are the Requirements for Getting a Student Credit Card?
For many years, card issuers aggressively advertised student credit cards on college campuses and through direct mail advertisements that offered pre-approved cards.
However, mounting public outrage over what many saw as irresponsible marketing and lending practises that resulted in excessive student card debt prompted the adoption of the Credit CARD Act of 2009, which imposed severe new regulations.
Applicants must now be at least 21 years old or provide proof of adequate independent income to cover the account’s expenses. If you’re under the age of 21 and don’t have enough money, you’ll need a co-signer who is above 21. (usually a parent or guardian).
Is it possible to pay off student loans with a credit card?
Credit cards are generally not accepted by loan processors for monthly payments. Technically, though, you might be able to use your credit card’s cash credit limit to make a student loan payment by withdrawing cash from an ATM using your card or requesting a convenience check from your issuer.
This type of transaction, however, would be deemed a cash advance and would be extremely risky, as cash advance interest rates are extremely high.