Milvionne Chery Copeland, Writer
@milvionne_copeland
The biggest pros of student credit cards are easy approval, being able to build credit and the chance to get better rewards, interest rates and fees compared to non-student credit cards for no credit. The biggest cons of student cards are low credit limits and the possibility of adding to your school debt. Although student credit cards have both pros and cons, the pros outweigh the cons if you are responsible.
Pros and Cons of Student Credit Cards
| Pros | Cons |
| Students can get approved with limited credit history | Low credit limits |
| Opportunity to build credit with monthly reporting to 1-3 major credit bureaus | Negative impact to credit score if bills not paid on time |
| Some cards teach responsible habits by giving bonus rewards for on-time bill payments and/or good grades | Temptation to overspend and possibly add to school debt |
| Interest rates and fees are often lower than those on other starter credit cards | High interest rates compared to credit cards for above-average credit |
| Better rewards than similar non-student cards | Worse rewards than elite cards for above-average credit |
If used responsibly, a student credit card can be a good way to build positive credit history before you even graduate. If you want some guidance on how to build credit with your credit card, check out WalletHub’s first-time credit card tips.
People also ask
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...
read full answerDo student credit cards build credit?
Student credit cards do build credit when they’re used responsibly, and you could even build a good credit score by the time you graduate. All major credit card companies report information about student credit card accounts to credit bureaus, and that information builds cardholders’ credit if it reflects on-time payments. The best student credit cards are low-cost and offer rewards in addition to helping students build their limited credit.
One of the best student...
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