Should college students have credit cards?

The best Visa credit card for students is Journey Student Rewards from Capital One because it has great cash back rewards, gives you extra for paying on time and doesn’t charge an annual fee. But there are a lot of good options to consider. For example, Bank of America® Customized Cash Rewards Credit Card for Students is great for 0% interest at the start, and the Bank of America® Travel Rewards Credit Card for Students has terms well-suited to study abroad.… read full answer

In general, despite having little credit experience, college students can expect better-than-average rates, fees and rewards because they have high earning potential and many years of financial needs ahead of them. Banks want to get in early, in other words. And you can take advantage of that by getting a great student credit card and saving lots of money.

• Journey Student Rewards from Capital One: Most Cash Back – The normal cash back rate is 1% but you can get 1.25% if you pay your bill on time. There’s no annual fee and you don’t need a credit history in order to be approved.
• Bank of America® Customized Cash Rewards Credit Card for Students: Intro APR – This card won’t charge you any interest for 12 months, both on purchases and on balance transfers. You get 3% cash back on your first $2,500 in gas, 2% at grocery stores and wholesale clubs, and 1% on everything else. There’s also a $200 bonus when you spend $1,000 in the first 90 days. And there’s no annual fee, nor do you need a credit history.
• Bank of America® Travel Rewards Credit Card for Students: Travel Benefits – If you’re planning to travel often, this card is for you. You get unlimited 3 points / $1 at the Bank of America Travel center and 1.5 points / $1 on all other purchases. And you get 25,000 bonus points when you spend $1,000 in purchases in the first 90 days. The card doesn’t have an annual fee and there’s no credit history necessary for approval.
• Wells Fargo Cash Back College℠ Card: Bonus Cash Back – This card gives 3% cash back on gas, grocery and drugstore purchases for the first 6 months. After that, you’ll earn 1% back on all purchases. The Wells Fargo Cash Back College card doesn’t charge an annual fee.

Any of these choices are good for students, but Journey Student Rewards and Bank of America Cash Rewards are probably the best two because they offer cash back rewards and don’t charge annual fees. You’ll be able to get the most consistent value out of them. But it’s good to look at cards from networks other than Visa, too. Some of the best choices include Discover it® Student Cash Back and the Capital One Secured Mastercard.

The best ways to build credit as a college student are to become an authorized user on a parent’s account and to use your own credit card account responsibly when the time comes. You don’t need to be a certain age to build credit. You can actually do it before getting your own credit card account, which you become eligible for once you turn … read full answer18 years old. Being an authorized user can help you establish credit and even build a good score. The primary accountholder just has to pay the bills on time. So if one of your parents will add you as an authorized user on one of their credit card accounts, that’s one way for you to build credit while in college.

Your other option is to get your own account. Student credit cards are designed for applicants with limited or no credit history. So a lack of experience shouldn’t keep you from being approved. You just need enough income (or assets) to pay the minimum monthly bills. Those are usually $10-$15 for students. Student cards often give terms that are much better than other cards for limited credit. That’s because credit card issuers know college students are more likely to have higher incomes after they graduate.

How to build credit as a college student:

1. Become an authorized user. For fast credit building, without having to apply for your own card, ask a parent or other adult to add you as a user. You’ll share a credit limit with the primary cardholder. Only the primary cardholder is required to pay, but both of you build credit.
2. Apply for a credit card. If you have no existing credit history, you will probably qualify for a student card with good terms as long as you have an income. But you can also apply for a secured card if you’re worried about approval odds, as secured cards are easiest to get.
3. Use the card responsibly. The biggest thing to worry about is not overspending. Don’t spend more than you can afford to pay off. And try not to exceed 30% of your credit limit, if possible.
4. Always pay on time. Missing a due date is very bad for your credit. It’s essential to make at least the required minimum payment on time each month. But paying in full is better, because it means you won’t owe interest.
5. Monitor your credit and statements closely. Check your credit report for free with WalletHub on a regular basis. Make sure there is no inaccurate information. Go over your credit card statements in depth to make sure there are no purchases that you didn’t authorize.
6. “Graduate” to better cards. Once you’re out of school, your credit card company may offer to upgrade your card based on the credit history you’ve built. Or, you could simply apply for a second card with better terms.

You can learn more from our full guide on how to build credit as a student.

If you want to take your credit-building efforts to the next level, sign up for a free WalletHub account. WalletHub is the only site with free credit scores and reports that are updated daily. And we’ll perform a personalized credit analysis, telling you what to improve, how to do it and how long it will take.

The main difference between a student credit card and a regular credit card is that student credit cards offer better rewards, rates, and fees than other credit cards for people with limited or no credit. Student credit cards are also meant for college and graduate students, while other cards don’t have the same requirement. Otherwise, … read full answerstudent credit cards work the same way as most other credit cards.

Student credit cards usually offer better terms than other starter credit cards because students tend to be young and have above-average earning potential. Credit card issuers want to attract them for future business and might offer a better deal than a student may deserve based solely on their current income and experience.

Student Credit Card vs. Regular Credit Card

While student and regular credit cards are similar to one another in most respects, student cards are better for people with limited credit history than most other credit cards for no credit. To see great options in both categories, check out WalletHub’s picks for the best student cards and the best starter cards currently on the market.