Are student credit cards a good idea?

Yes, student credit cards are a good idea, as long as they are used responsibly, because they give students the opportunity to build credit cheaply while earning rewards on purchases. Student credit cards tend to offer lower fees and better rewards compared to general-consumer cards for applicants with limited credit. Because students will have increased earning potential after graduation, credit card issuers are often willing to extend above-average offers to college students in order to gain loyal customers for decades to come.

Why Student Credit Cards Are a Good Idea

Emergency Spending Power and Convenience

Ideally, you should pay your credit card bill in full every month to avoid interest charges and maintain good credit, but college life can be costly. The good news is that some student credit cards come with 0% introductory APRs on purchases, which means that you could use your new card for a big-ticket item and repay it over several billing cycles without incurring any interest. Plus, having a credit card on hand can help cover unexpected expenses, such as a hospital bill or car repairs.

Rewards for Shopping

If you're spending money anyway, you might as well get some of it back. Most student credit cards offer at least 1% cash back on purchases. Some student credit cards even throw in bonus rewards for maintaining a history of on-time payments or for spending a certain amount within the first few months your account is open.

Credit-Building Opportunity

It is never too early to start building credit history. Since most student credit cards report to all three of the major credit bureaus, paying your credit card bills on time and keeping a low credit utilization level throughout your college career could add years of positive information to your credit report.

In other words, getting a student credit card as soon as possible can help you reach the kind of credit score you'll eventually need to rent an apartment, take out a mortgage, or even qualify for certain jobs.

Protection Against Fraud

All consumer credit cards, including student cards, guarantee zero liability for unauthorized purchases. This means you will not be financially responsible for charges you didn't approve.

You don't always get the same level of coverage with a debit card. Plus, credit card purchases don't come directly out of your bank account, so you'll have time to dispute fraudulent charges before even paying the bill. All in all, paying for everyday expenses with a credit card is far safer than using a debit card or cash.

Good Practice

Using a student credit card before you graduate to general-consumer cards and higher credit limits means you can learn from mistakes while the stakes are still low. Getting some practice with a student card can also help you develop good habits early, such as keeping track of your spending, meeting due dates, and regularly reviewing your transaction history.

Finally, it's worth remembering that not all student credit cards are created equal, and some might offer better benefits than others. To find the right card for you, check out WalletHub's editors' latest picks for the best student credit cards.