For international students embarking on their academic journey, managing finances in a new country can be challenging. Building credit history is crucial for future opportunities, from renting an apartment to securing loans. A credit card specifically designed for international students can be a vital tool for establishing financial independence and responsibility.
Finding the right credit card can be overwhelming. This guide provides a comprehensive overview of the best credit card options for international students in 2024, helping you make an informed decision that suits your individual needs and circumstances.
| Card Name | Key Features | Why It's Great For International Students |
|---|---|---|
| Discover it® Student Cash Back | 5% cash back on rotating categories (up to quarterly maximum), 1% on all other purchases; No annual fee; Credit score boost | Often easier to qualify for with limited credit history; Cash back rewards help offset expenses; Good for building credit; Double cash back offer at the end of the first year. |
| Discover it® Student Chrome | 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter), 1% on all other purchases; No annual fee; Credit score boost | Similar to the Cash Back card, but focuses on gas and restaurant spending, common expenses for students; Helps build credit; Double cash back offer at the end of the first year. |
| Deserve® EDU Mastercard for Students | No SSN required (may require proof of enrollment and foreign passport); 1% cash back on all purchases; No annual fee; Potential for credit line increase after responsible use | Specifically designed for international students without a U.S. Social Security Number; Easiest to qualify for without a credit history; Offers rewards and a pathway to building credit. |
| Petal® 1 "No Annual Fee" Visa® Credit Card | No credit history needed; Cash back rewards (varying based on creditworthiness); No annual fee; Reports to all three major credit bureaus | Uses alternative data to assess creditworthiness, making it accessible to those with limited or no credit history; Helps build credit; Offers cash back rewards. |
| Capital One Quicksilver Student Cash Rewards Credit Card | 1.5% cash back on all purchases; No annual fee; Possibility of a higher credit line after six months | Straightforward rewards program; Relatively easy to qualify for with limited credit history; Good for building credit. |
| Journey Student Rewards from Capital One | 1% cash back on all purchases; Boost to 1.25% when you pay on time; No annual fee; Possibility of a higher credit line after six months | Rewards good payment behavior; Relatively easy to qualify for with limited credit history; Good for building credit. |
Detailed Explanations
Discover it® Student Cash Back: This card offers a compelling rewards program with 5% cash back on rotating categories (like Amazon.com, grocery stores, restaurants) up to a quarterly maximum, and 1% cash back on all other purchases. It's a great option for students who can strategically use the rotating categories to maximize their rewards. The "Double Cash Back" offer at the end of the first year effectively doubles all the rewards you've earned, making it even more valuable. Importantly, Discover cards are increasingly accepted but still may not be as widely accepted as Visa or Mastercard, so consider this factor based on your spending habits.
Discover it® Student Chrome: Similar to the Cash Back card, the Student Chrome focuses on gas and restaurant purchases, offering 2% cash back at these locations (up to $1,000 in combined purchases each quarter), and 1% on all other purchases. This is an excellent choice for students who frequently dine out or need to purchase gas for transportation. The "Double Cash Back" offer applies to this card as well. Like the Cash Back card, consider Discover's acceptance rate in your area.
Deserve® EDU Mastercard for Students: This card is specifically tailored for international students and is a standout choice because it doesn't require a U.S. Social Security Number (SSN) for approval. You will likely need to provide proof of enrollment in a U.S. educational institution and a copy of your foreign passport. It offers 1% cash back on all purchases and has no annual fee. The potential for a credit line increase after responsible use is a valuable feature that helps you build credit more effectively. The Deserve EDU Mastercard is often the easiest card for international students to qualify for, even without any prior credit history in the U.S.
Petal® 1 "No Annual Fee" Visa® Credit Card: Petal cards are unique because they consider alternative data, such as your bank account information and payment history (even if it's not credit history), to assess your creditworthiness. This makes them accessible to individuals with limited or no credit history. The cash back rewards vary depending on your creditworthiness, but they offer a way to earn rewards while building credit. Petal reports to all three major credit bureaus (Equifax, Experian, and TransUnion), which is essential for establishing a solid credit history.
Capital One Quicksilver Student Cash Rewards Credit Card: This card offers a straightforward rewards program with 1.5% cash back on all purchases. It's a good option for students who prefer a simple and consistent rewards structure. It's often relatively easy to qualify for with limited credit history. Capital One is a well-established and reputable credit card issuer. The possibility of a higher credit line after six months of responsible use is a benefit.
Journey Student Rewards from Capital One: The Journey Student Rewards card from Capital One provides 1% cash back on all purchases, with a boost to 1.25% when you pay your bill on time each month. This card encourages and rewards responsible financial behavior. Like the Quicksilver Student card, it's relatively easy to qualify for and offers the potential for a higher credit line after six months. It's a great option for students who are committed to paying their bills on time.
Frequently Asked Questions
Do I need a Social Security Number (SSN) to get a credit card as an international student?
No, not always. Some cards, like the Deserve EDU Mastercard, are specifically designed for international students without an SSN. Others might require an ITIN (Individual Taxpayer Identification Number).
How can I build credit as an international student?
Using a credit card responsibly by making timely payments and keeping your credit utilization low (ideally below 30%) is the best way to build credit.
What is a secured credit card?
A secured credit card requires you to deposit a certain amount of money as collateral, which becomes your credit limit. It's a good option for those with no credit history.
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the IRS to individuals who do not have and are not eligible to obtain a Social Security Number (SSN).
What is a credit utilization ratio?
Your credit utilization ratio is the amount of credit you're using compared to your total available credit. It's a significant factor in your credit score.
Are there any credit cards that offer travel benefits for international students?
While student cards generally don't offer extensive travel benefits, some may waive foreign transaction fees, making them more convenient for international travel.
What are foreign transaction fees?
Foreign transaction fees are charges incurred when you use your credit card to make purchases in a foreign currency or when the transaction is processed outside of the United States.
How important is my credit limit?
Your credit limit is the maximum amount you can charge to your credit card. A higher credit limit, when used responsibly, can help lower your credit utilization ratio.
What happens if I miss a credit card payment?
Missing a credit card payment can negatively impact your credit score, and you may incur late fees. It's crucial to pay your bills on time.
How do I apply for a credit card as an international student?
You can typically apply online through the credit card issuer's website. Be prepared to provide documentation such as your passport, student visa, and proof of enrollment.
Conclusion
Choosing the best credit card for international students depends on individual circumstances and spending habits. The Deserve EDU Mastercard stands out for its accessibility to students without an SSN, while the Discover it® Student Cash Back and Discover it® Student Chrome cards offer valuable rewards. Carefully consider your needs and choose a card that will help you build credit responsibly and achieve your financial goals.