Choosing the right credit card as a student can be a pivotal step towards building a solid financial future. A student credit card offers a convenient way to manage expenses, establish a credit history, and potentially earn rewards, all while learning crucial financial responsibility. This guide will explore the best student credit card options available in 2024, highlighting their key features, benefits, and drawbacks to help you make an informed decision.
| Card Name | Key Features | Why It's Great for Students |
|---|---|---|
| Discover it® Student Cash Back | 5% cash back on rotating categories each quarter (up to a quarterly maximum when activated), then 1% back. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. | This card is excellent for earning cash back on everyday purchases. The rotating categories encourage responsible spending habits by focusing on different areas each quarter. The first-year cashback match is a huge incentive. |
| Discover it® Student Chrome | 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1% back. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. | Ideal for students who frequently dine out or drive. The cashback match at the end of the first year significantly boosts earnings. No annual fee makes it a cost-effective choice. |
| Capital One Quicksilver Student Cash Rewards Credit Card | 1.5% cash back on every purchase, every day. | Simplicity and consistency are the key here. Earning a flat rate of 1.5% cash back on everything makes it easy to understand and manage. It's a solid choice for students who want a straightforward rewards program. |
| Journey Student Rewards from Capital One | 1% cash back on all purchases; earn 0.25% bonus cash back for the billing periods you pay on time, every time. | Great for building credit and rewarding responsible payment habits. The bonus for on-time payments encourages financial discipline. It is a good starter card for those with limited or no credit history. |
| Bank of America® Customized Cash Rewards Credit Card for Students | 3% cash back in a category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings), 2% cash back at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1% back). 1% cash back on all other purchases. | Offers flexibility and potentially higher rewards in specific spending categories. Students can tailor the card to their spending habits. The category selection is a major benefit, but it requires active management to maximize rewards. |
| Deserve® EDU Mastercard for Students | 1% cash back on all purchases. Amazon Prime Student membership after spending $500 in the first three billing cycles. | Designed specifically for international students or those with limited credit history. The Amazon Prime Student benefit is a valuable perk. No foreign transaction fees make it ideal for students studying abroad. |
Detailed Explanations
Discover it® Student Cash Back: This card stands out due to its rotating 5% cash back categories. Each quarter, you can earn 5% back on specific purchases (up to a quarterly maximum when activated), such as gas stations, grocery stores, or restaurants. All other purchases earn 1% cash back. The first-year cash back match is a significant advantage, essentially doubling your rewards for the first 12 months. This feature makes it a powerful tool for maximizing savings on everyday expenses.
Discover it® Student Chrome: Focusing on gas and dining, this card offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1% back. It's a great option for students who frequently eat out or drive. Like the Cash Back version, it also features the first-year cash back match. The absence of an annual fee makes it a budget-friendly choice for students.
Capital One Quicksilver Student Cash Rewards Credit Card: This card provides a simple and straightforward rewards structure: 1.5% cash back on every purchase. This flat-rate reward system eliminates the need to track spending categories, making it an easy-to-manage option. It is a good choice for students who prefer simplicity and consistency in their rewards program.
Journey Student Rewards from Capital One: This card focuses on building credit and rewarding responsible financial habits. You earn 1% cash back on all purchases. Crucially, you can earn a bonus of 0.25% cash back for the billing periods you pay on time, every time. This encourages timely payments and helps students establish a positive credit history.
Bank of America® Customized Cash Rewards Credit Card for Students: Offering flexibility, this card allows you to choose a 3% cash back category from a list of options, including gas, online shopping, dining, travel, drug stores, or home improvement/furnishings. You also earn 2% cash back at grocery stores and wholesale clubs (on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1% back). All other purchases earn 1% cash back. The category selection allows for personalized rewards based on spending habits, but requires active management to maximize earnings.
Deserve® EDU Mastercard for Students: This card is designed for international students or those with limited credit history. It offers 1% cash back on all purchases. A significant perk is the Amazon Prime Student membership offered after spending $500 in the first three billing cycles. The card also waives foreign transaction fees, making it an ideal choice for students studying abroad.
Frequently Asked Questions
What is a student credit card? A student credit card is a credit card specifically designed for students with limited or no credit history, often offering features like rewards programs and credit-building opportunities.
Why should I get a student credit card? A student credit card helps build credit, manage expenses, earn rewards, and learn financial responsibility.
What credit score do I need to get a student credit card? Many student credit cards are designed for students with limited or no credit history, but a fair credit score (580-669) can improve your chances of approval.
What are the typical fees associated with student credit cards? Many student credit cards have no annual fee, but it's important to check for other fees like late payment fees and over-the-limit fees.
How can I build credit with a student credit card? Make on-time payments, keep your credit utilization low (below 30%), and avoid maxing out your credit limit.
What is a good credit utilization ratio? A good credit utilization ratio is generally below 30% of your total credit limit.
What happens if I miss a payment? Missing a payment can result in late fees, a negative impact on your credit score, and potentially higher interest rates.
Can I use my student credit card abroad? Some student credit cards charge foreign transaction fees, while others do not; check the card's terms and conditions before traveling.
How do rewards programs work? Rewards programs offer cash back, points, or miles for purchases made with the card, which can then be redeemed for various benefits.
When should I apply for a student credit card? Apply for a student credit card when you have a steady income source and are ready to manage your finances responsibly.
Conclusion
Choosing the best student credit card depends on your individual spending habits and financial goals. Consider the rewards programs, fees, and credit-building opportunities offered by each card to make the most informed decision and start building a positive financial future. Remember to use your credit card responsibly by making on-time payments and keeping your credit utilization low.