Best Credit Cards for Students with No Credit

Yes. You have to be a student to get a student credit card most of the time. Most student credit cards require applicants to provide the name of their school, their expected graduation date, or some other proof of enrollment.

The terms and conditions for some student credit cards also state that the card is specifically for currently-enrolled students. It’s illegal to lie on a credit card application, so applicants are legally compelled to be honest about their college enrollment status.

Even if a student credit card application doesn’t ask you about your enrollment status, student cards are meant for students. If you don’t qualify as a currently-enrolled student, there are plenty of alternatives for people just starting to build their credit. You can get a secured credit card or a starter credit card, for example, without needing to be a student.

Yes, it is worth getting a credit card as a student, if you are 18+ years old and have some income. Student credit cards help young adults start building credit history, and they often provide better rewards, interest rates and fees than other types of starter credit cards.

While it can be risky to have a credit card when you are young and inexperienced with personal finance, you can minimize that risk by setting a strict monthly budget, only using the card for purchases you can pay off in full each month, and setting up automatic payments from a bank account. The benefits of a student credit card are well worth it as long as you handle the card responsibly and don't damage your credit.

Why It's Worth Getting a Credit Card as a Student

• Credit building: You legally can get your own credit card as soon as you turn 18 years old, which is the typical age for going to college. Student cards let you start building credit right away, which can pay big dividends after college.
• Ease of access: Student credit cards are available to students who have little or no existing credit history.
• Perks: Many student credit cards offer rewards, and some may have special benefits, like bonuses for good grades.
• Low cost: Student credit cards usually have $0 annual fees.
• Unsecured: You will not have to put down a security deposit to get a student credit card.
• Better terms: The interest rates and fees on student credit cards are often lower than those on other starter credit cards.

Student credit cards have many advantages, so it's definitely worth getting a credit card as a student. And if you use the card responsibly, you could have good (or even excellent) credit by the time you graduate.

Yes, it's a good idea to get a credit card at 18, as long as you use it responsibly.

Applying for a starter credit card as soon as possible will add positive information to your credit reports and will help you build credit fast. The main thing you need to do in order to benefit from a credit card's credit building effects is to always pay your bills on time and in full.

The best first credit card for students is the Bank of America® Customized Cash Rewards Credit Card for Students because it reports to the main credit bureaus monthly, has a $0 annual fee, and only requires limited credit for approval. Plus, Bank of America Cash Rewards for Students gives 1 - 3% cash back on all purchases. And its intro bonus of $200 for spending $1,000 in the first 90 days is the cherry on top for students getting their first credit card.

Best First Credit Cards for Students

The biggest feature to look for on your first credit card is credit bureau reporting because that will help you build your credit score, assuming you use the card responsibly. Fortunately, nearly all credit cards from major issuers report to credit bureaus. You’ll also want to look for a card with no annual fee because newcomers to credit shouldn’t need to pay for the right to build their credit history.

You can apply for a student credit card online, at a branch or (in some cases) by phone. To be eligible for approval, student credit card applicants must be at least 18 years old, earn enough income to afford monthly bill payments, and have limited credit or better (just not bad credit).

To fill out a student credit card application, you will need to provide your annual income, your Social Security number (or an applicable alternative for international students) and other personal information – usually along with information about your school. As with any credit card, when you apply for a student credit card, you could receive a decision instantly if you apply online, or it could take as long as 10 business days. It usually takes 7-10 business days to receive a card in the mail after approval.

How to Get a Student Credit Card

1. Apply online, over the phone, or in-person. Make sure to have your SSN (or accepted alternative) and annual income at hand. If you’re under 21, you’ll need to have independent income to get approved for a credit card. 
2. Wait for a decision. Sometimes, you’ll get an instant decision. If not, the typical waiting period for credit card applications is 7-10 business days.
3. Watch your mailbox. If you’re denied, the credit card company will send you a letter explaining your denial. If you’re approved, you’ll receive your credit card in the mail 7-10 days after you’re approved.

Student credit card issuers obviously expect applicants to be students, and many require proof. But they all do it a little differently. For example, the Citi Rewards Student Card asks for your school’s details and your expected graduation date on the application, and its terms say the card is for currently-enrolled students only. At least one student credit card, the Capital One Journey Student Credit Card, doesn’t require applicants to be students in its terms and conditions.

Applying for a student credit card might sound complicated and intimidating, especially if it’s your first credit card application. Try not to sweat it, though—the process is fairly simple in reality.

Student credit cards are a good way for students without much credit history to build credit. Their rewards can also work in a student’s favor. Some offer statement credits for good grades and perks for paying the bill on time. And you definitely need to pay all the bills on time if you want to be successful after you apply for a student credit card.

Here’s what to put for income on a credit card application as a student: income from full or part-time jobs (including work-study), investment dividends, and most other funds that are regularly deposited into your bank account. Excess scholarship money that ends up in your bank account after tuition expenses generally counts as income, too. Some credit card companies may even consider the entire amount as income if it lands in your bank account first. Social Security payments and pensions from deceased relatives, and public assistance payments also count as income. Money from grants may or may not count, depending on the credit card company.

In general, if the money is available to pay a debt you owe, and is not earmarked exclusively for education expenses, it usually counts as income on a credit card application. The exception is borrowed money, including student loans.

Student loans don’t count as income

There’s no law against including student loan disbursements in your total annual income. But student loan money shouldn’t be counted as income on a credit card application because it’s not income—it’s debt. Any money that must be repaid should not be counted as income. Many students use loan money for personal expenses while in school, but that doesn’t mean it’s income.

What portion of scholarship or grant money counts as income?

Customer service representatives from different credit card companies have different opinions on this. For example, Chase reps say it depends on where the awarded money lands first. If the money goes directly to your school to pay for tuition and fees, you can only include whatever amount ultimately lands in your bank account. If the money comes to you first, you can include the entire amount—even if you pay tuition with it.

A Capital One rep said that no matter where scholarship money lands first, it’s up to the student to decide what gets counted in the application. That said, the rep did distinguish that grants do not count as income: “Neither student loans nor grants count as income because they are not considered a stable, continuous source of income."

If you’re in doubt, it’s best to call your credit card company’s customer service line and ask directly.

A student’s age impacts income on credit card applications

It’s worth noting that shared income can only be included on a credit card application if you’re over 21 years old. Those under 21 must have independent proof of income or a cosigner to get a credit card. That rule dates back to the Credit CARD Act of 2009. Credit card companies now have a more formal obligation to assess an applicant’s ability to pay their debt before extending a credit line.

How credit card companies interpret the law

There is a bit of a grey area between the CARD Act’s rules and credit card company guidelines for annual income. The law requires credit card companies to consider independent income for applicants under the age of 21. But based on the way major card issuers seem to interpret it, independent income doesn’t necessarily mean money earned directly by a student for doing a job.

For example, a Chase customer service representative suggested including any type of allowance you might receive from someone else to help pay your bills, if it’s deposited in your own bank account. Similarly, a Capital One representative noted that money must be “reasonably available” to you for it to count as independent income. That means the money must be regularly deposited into your personal account, or an account you share with the person depositing the funds.

So if your parents regularly deposit money into your bank account, you can use that amount in your annual income figure, according to Chase and Capital One reps. And if you’re 21 or older, you're allowed to report shared household income as your own on a credit application, as long as you have a reasonable expectation of access to the money. Sharing a bank account is not required in that case.

Does my annual income have to be 100% accurate?

Theoretically, credit card companies can take steps to verify what you put for income on your application. If they have a reason to doubt the number you give them, they can request information from your tax returns or use data from your credit report to create an estimate of your income. Keep that in mind because it’s against federal law to put false information on a credit card application. The law isn’t commonly prosecuted, but technically, breaking it is punishable by up to 30 years in federal prison per offense.

Having income from at least a part-time job will help a student get a credit card. But many students are unemployed while they’re in school. A 60% majority of full-time college students don’t have jobs, according to a 2019 study by the National Center for Education Statistics. That puts many college students at a disadvantage when it comes to getting a credit card. If your income is too low, try to find a cosigner or become an authorized user on a friend or family member’s account.

Yes, it is a good idea for college students to have a credit card because it is the best way to begin building credit history. Simply owning a credit card account and keeping it in good standing can allow a student to go from having no credit at the start of college to fair credit or even good credit by graduation.

In other words, responsible credit card use will give students a leg up when they enter the real world. Without a strong credit profile, students may have a difficult time renting an apartment, getting a car loan, finding cheap car insurance, and even landing a job.

At the very least, college students should have a credit card as an authorized user on a parent’s account. You can build credit as an authorized user while the primary cardholder is responsible for making payments. The primary cardholder can also monitor the account. If there’s any sign of reckless card use, they can remove the authorized user at any time.

Why Some People Think Students Should Not Have Credit Cards

Missing payments and racking up debt are the biggest reasons people say not to get a credit card as a college student. But there are easy ways to minimize the risk while still reaping all the benefits. For example, you’ll be less likely to miss any due dates if you set up automatic payments from a bank account. You could also pay any annual fee the card may have and then lock the card away somewhere safe – to resist the temptation to overspend. You’ll still build credit that way.

Furthermore, it’s just a myth that college students can’t get credit cards. To qualify, you have to be at least 18 years old and demonstrate the ability to afford monthly bill payments. More specifically, anyone between the ages of 18 and 21 must prove their ability to independently pay back debt before they can own a credit card, per the Credit CARD Act of 2009. Or, an applicant may have a co-signer who is at least 21 years old. The cosigner would be financially liable for the account. Most credit card companies don’t allow co-signers anymore, though.

Final Thoughts

If you wait until after college to get a credit card, you could be costing yourself when it comes it annual fees and rewards. Credit cards for college students tend to be a lot more attractive than other credit cards for people with limited or no credit.

Best Credit Cards for College Students to Have