Best Credit Cards For Students

Students should get a credit card in college to begin building a credit history. The earlier you start the better since you need a long credit history and a healthy credit score for major financial purchases.

Most major credit unions and banks offer a card for students. You can start by researching your current bank's options or comparing other offers. When you submit an application online, the lender walks you through the process.

You do not need an income to qualify for a student credit card. Most lenders understand students do not possess a credit history or earn a steady income, and they often show more generosity than nonstudent lenders.

A standard credit card is the most common type of credit card available from any bank or credit union. Your current bank may offer one that connects to your current savings and checking accounts. This kind of credit card can act as a travel credit card or other form of rewards-based incentive card. The specific cards available to you depends on your credit score.

Banks and credit unions specifically design student credit cards. College credit cards typically offer lower interest rates and no annual fees. Some feature an introductory 0% APR for the first year. Student credit cards may also feature student-specific perks like rewards for earning good grades, a free Amazon Prime membership, or extra incentives for spending in common categories like gas, dining, and grocery.

College students can often get a student-specific credit card easier because lenders know that most students do not maintain a credit history. Student credit cards also offer more generous terms than normal credit cards that lend to limited-credit individuals because students typically possess a high earning potential.

Students can also get a store or retail credit card from a variety of businesses. For example, retailers like Target, TJMaxx, Amazon, and Aerie offer their own credit cards. You can use them anywhere but earn specific rewards and incentives for using it at their business.

These types of credit cards often include high interest rates and unforgiving terms. However, if you regularly shop at that particular business, it can still help you build credit and glean extra perks like discounts and coupons. Stay on top of monthly payments and use your card only when necessary. You should never carry a balance on store or retail credit cards or use them for major purchases.

With a points credit card, you earn points for your spending that you can redeem in various ways. The most dynamic option, students can exchange points for cash, gift cards, experiences, hotel points, or airline miles. The value of these points varies depending on how you redeem them, which may require research and feel complicated for some people.

A cashback credit card is the most simple type of reward structure. Card-holders receive a percentage of their transactions back in the form of cash. The percentage can range by category, like 3% back for travel spending versus 2% back for grocery store purchases. Choose this option if you want direct value that you can use almost immediately.

Some credit cards offer rewards in the form of air miles, which students can redeem for flights with a variety of airlines. Individuals who want to invest in savings on future travel plans may especially enjoy this option. If you prefer a certain airline, you can get a miles credit card through that company.

A charge card does not include a spending cap or credit limit, but you can still build credit. Charge cards also do not charge interest. You could essentially spend as much as you want with the card, but you must pay off the entire balance every month. A charge card resembles a debit card in that you need to have the money you spend. However, these cards typically charge high annual fees.

A prepaid card resembles a gift card in that you load money to spend. However, since you do not link a prepaid card to a bank account like a debit card, you cannot earn any credit on your spending like with a credit card. Popular among college students, prepaid cards allow parents to load money for their students to develop money management skills without the risk of building credit card debt.