Best Student Credit Cards Of June 2023

The best student credit cards were chosen based on the following:

• Welcome Bonuses
• Fees
• Rewards
• Other Perks
• APRs

We paid special attention to APRs and other factors that could negatively affect students (who are more likely to have minimal knowledge and experience with credit cards). That said, what is best for the majority of students might not be right for you. Do your research before deciding which cards will best help you achieve your financial goals.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Rates Credit Cards.

With smaller credit limits and incentives tailored to those in college, student credit cards can provide a bridge to more valuable credit offers in the future. By paying your bill in full and on time every time, you can build a credit profile that will make getting other types of loans, like another credit card, a car loan or a mortgage much easier and less expensive when you need it. Beware, however, the danger of taking on too much too soon: These student credit cards are not toys and can ruin or damage credit as easily—if not easier—than they can help construct it.

When Should I Get a Credit Card for Students?

The Credit CARD Act of 2009 stipulates credit cards cannot be issued to anyone under 21 unless a parent or guardian co-signs or the student has independent income. This restriction applies to student credit cards. Many credit card issuers don’t allow co-signers, so an independent source of income or waiting until age 21 may be the only options available. If you’re about to apply for your first credit card, we recommend you read our guide to applying for your first credit card.

Why Should I Get a Student Credit Card?

If you are of age and feel you are ready to carry a credit card, signing up for a student credit card is a solid stepping stone for learning about how credit works as well as how to manage your finances in a responsible way, while enjoying the benefits of various student offers such as low or no monthly service fees. Borrowing money in any scenario, however, can come with significant risk.

Credit Building

Applying for a student credit card (especially if you’ve never had a credit card before) can help you start building credit. It’s far more convenient to exit school with good credit, especially if you plan to apply for other cards, loans or a mortgage.

College Financial Planning

College students often bridge the gap between adolescence and adulthood during their educational adventure and understandably often require additional financial support. It’s important to learn how to responsibly manage a budget day to day—especially when working with tuition costs, student loans and any other educational expenses.

While credit cards can help stretch finances in a pinch, it’s important to avoid spending money you don’t have. Credit cards are convenient tools to manage finances—not magic plastic for accessing free money.

Avoid Foreign Transaction Fees

Students who study abroad can use student credit cards without foreign transaction fees to save on a number of possible fees and charges associated with other forms of payment or access to funds abroad.

Picking a credit card can seem like trying to choose an elective class—there are so many options available and it’s difficult to figure out where to start. Some first-time credit card applicants may see the advantage of a secured card instead of a student card and others may want to be an authorized user on someone else’s card or find a co-signer and obtain a card with more robust offerings than a typical student card (if the card issuer allows co-signers). Forbes Advisor’s resources can help you figure out what sort of card might be right for you if you’re looking at applying for your first credit card.

Before applying, carefully consider your options. Here are some questions to ask:

• Are you ready for a credit card? You can damage your credit by getting a credit card that you overspend on or that you don’t pay on time.
• Do you understand what you’re signing up for? If you don’t feel you have the knowledge or experience with credit or credit cards yet, try checking out some of our educational resources on subjects important to understand about credit cards:
  • What is APR? What’s a good APR?
  • What’s the difference between APR, APY and my interest rate?
  • How can I avoid paying interest on a credit card balance?
  • How do I decipher this credit card bill?
  • How does paying my bill work?
  • What about credit card fees?
  • How do I actually apply for a credit card?

Are you trying to maximize earnings or do you value simplicity? If you don’t want to wonder which category is getting bonus points this quarter, a flat-rate card is probably a better choice.

Some cards offer generous welcome bonuses, but are not the best for actual category bonuses. Are you looking for a rewards kick-start or a generous ongoing rewards program?

Carefully consider a few important items when selecting the right card for you.

Annual Fees

Many credit cards charge annual fees. Typically, these cards also provide better rewards, more benefits and other valuable perks. You should consider several factors when deciding if you want an annual fee, but first among them is whether or not you’ll receive enough additional benefit from the annual fee. It may be easy to ask, “will the rewards or benefits of this card pay for the fee?” but the question you should ask is, “will the rewards and benefits of the card pay for the annual fee and bring me more value than the best no-annual-fee option for me?”

Another factor to consider, especially as a student with little to no credit history, is that an annual fee is often charged to the credit card account and immediately reduces available credit. If your card’s annual fee is $100 and you’re only granted a $300 credit limit, you will be opening an account with credit utilization already at 33%. You should be prepared to immediately pay this down to avoid reducing your credit score; we never recommend credit utilization exceed 30%—and preferably remain below 10%.

Interest Rates and Fees

What is the card’s APR? What are the hidden fees and how do you avoid them? Reading the fine print of any card agreement should be done before agreeing to anything. Reading terms and conditions and ensuring you fully understand them should be done before applying for a card. If this seems like too much work, don’t apply for a credit card. See the resources above for help deciphering what things you may not understand mean for your everyday card use.

Credit Reporting

A major reason many students should consider student credit cards is the opportunity to build healthy credit. This won’t happen, though, if the card issuer doesn’t report your account information to major credit bureaus. For best results, find a card issuer that reports to all three major consumer credit bureaus: Experian, Equifax and Transunion. Using a student card to build stronger credit will help you gain easier and more affordable access to other types of loans and more rewarding credit card offers.

Rewards

Student credit cards now often offer decent rewards in the form of (usually) either cash back or points. Though student card rewards remain unlikely to compete with the best rewards cards on the market, they’re often better than rewards offered by secured cards and other options for those with little to no credit history.

Security Deposits

Student cards rarely require security deposits and often offer an unsecured alternative to other credit-building products such as secured credit cards. This lack of a security deposit can be a huge help to students without the capital to collateralize a credit account for the sake of building credit or earning rewards.

Foreign Transaction Fees and International Acceptance

Plan to travel abroad? You’ll want to make sure your card will be accepted internationally and not charge you for every purchase you make in your host country. Card networks play an important role in international acceptance: Visa and Mastercard are widely accepted by international merchants, but Discover isn’t always accepted in foreign countries.

Foreign transaction fees range between 2% and 5% depending on the card and issuer, but many travel-oriented cards forgo these fees entirely. If you don’t plan to leave the U.S., these fees are not likely an important consideration. But if you do, these fees can stack up quickly and make travel that much more expensive. Be sure not to confuse foreign transaction fees with currency conversion fees.

Travel benefits may be another consideration. The Bank of America® Travel Rewards credit card for Students charges no foreign transaction fees and would be widely accepted by most international merchants that accept credit cards but goes even farther to offer several benefits aimed toward students traveling abroad.

You can usually apply for a student credit card in person at a local bank branch or online with the card issuer of your choice. Make sure you have all the necessary documents to prove identity, current enrollment status, credit history (if relevant) and current income. These may include:

• Social Security number
• Contact Information (including address)
• Annual income information
• Housing payment information

Once the application has been filled out, your application may be approved immediately and you’ll see your physical card sent by mail or you may have to wait up to a month for a decision.

How To Fill Out the Income Section on a Student Credit Card Application

When applying for any credit card, you’ll likely be asked to show you have sufficient income to make monthly payments. This is especially true with student cards for anyone applying independently under the age of 21.

As with any application for a credit card or financial account, it is important to be as honest and as accurate as possible. Some cards have income minimums in order to qualify. Do not lie or exaggerate if your current income amount is lower than the requirement.

If you’re worried about rejection, consider the options you have for application. For example, if students with limited income may be able to apply with a co-signer—either a trusted friend, partner or family member who can vouch for you and provide separate proof of sufficient income—should the financial responsibility of making a payment fall to them at any point.

How To Make the Most of Your Student Credit Card

By definition, students are supposed to learn—and that’s what a good student credit card can help you do. Though the consequences are the same as real credit cards and issuers rarely leave much room for mistakes, the great student credit cards give those seeking education an opportunity to explore rewards, benefits and credit. To make the most of a student credit card, use the opportunity to build better credit and great spending habits.

Educate yourself on how to maintain healthy credit and how your credit score works. Learn about credit utilization and find out what great credit can help you achieve. Know that you should always pay a bill on time, in full if you can. You should never miss a minimum payment and don’t spend more than you can afford to pay off at the end of the month. Don’t use up too much of your available credit and ensure your account remains open and in good standing. All these tips can help you keep moving in a positive direction when it comes to building your credit.

Even if you have made mistakes, remember that we’re all students and it’s never too late to learn. Besides, collection agencies may be able to use court orders to take your money, but a good education is something no one can take from you.

Before signing any credit card agreement, always read the fine print and understand what your responsibilities are. By staying on top of personal finances, educating yourself and not spending money you don’t have, you can generally avoid the sort of horror story you may have read involving astronomical debt and ruined credit.

If you don’t feel you have the knowledge or experience with credit or credit cards yet, try checking out some of our educational resources on subjects important to understand about credit cards.

If for some reason your application for a student card is denied or you feel you are not yet ready to open a student credit card account, there are a few other options that may provide similar benefits and financial freedom.

1. Secured Credit Card

Some may find a safer financial option in a secured credit card. A secured card gives you skin in the game when it comes to repayment because you have to put down a deposit in order to secure a credit limit. For this reason, it’s not as challenging to be approved for a secured card, as the cash deposit ensures an outstanding balance will not be left unpaid. Over time, if desired, responsible cardholders can often upgrade a secured card to a non-secured version and receive the original deposit back.

2. Charge Card

A charge card is one alternative option for keeping financial liability relatively simple while enjoying credit-card-like convenience. A charge card functions much like a credit card, but requires full payment on a monthly basis instead of allowing for balances to carry with interest. For new cardholders this could be a direct and simple way to manage payments while still offering the benefit of not having to pay directly from a debit account when making a purchase.

3. Gift Card

Some students may also prioritize spending by selecting gift cards associated with specific companies they know they will purchase from. Whether as a graduation gift, birthday gift, or even a gift to yourself—requesting a gift card for a certain amount can help students budget spending in a more organized way without having to dip into savings regularly or withdraw money too often. Many large companies, including Apple or Amazon, also offer many discounts and promotions for students, so using a gift card with proof of student enrollment might result in a net discount on some products.

Credit cards are a tool like any other.  A hammer can pound a nail if used properly, but can also smash your thumb if you mishandle it. Credit cards can help consumers enjoy useful benefits when used responsibly. Student credit cards are not the only option for building credit and expanding financial freedom while enrolled, but often provide a more financially rewarding and beneficial option over alternatives.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

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