Best student credit cards for September 2024 #CashNews.co

Building credit while you’re a student can help you prepare for the post-grad future, when you’ll have more income and more expenses. By laying the foundation today, you can establish the credit you’ll need to rent an apartment, take on auto or personal loans, buy a home, and more. Every card on our list allows students to build credit and earn rewards on their spending, regularly reports payments to all three credit bureaus (Equifax, Experian, and TransUnion), and offers access to your credit score (such as VantageScore and FICO) so that you can track your credit progress over time.

Best student credit cards for September 2024

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Pros:

Cons:

• Potentially high APR (up to 28%)

• 3 to 4% balance transfer fees

• Bonus category cash back limited to $2,500 per quarter

• 3 to 5% foreign transaction fees (not great for students studying abroad)

• $40 late payment fees

Why it’s good for students

Not only is it a card geared toward student applicants, but the Customized Cash Rewards card also has a lot to offer students who may have longer journeys to and from the classroom. We like this card for commuters specifically thanks to its generous cash-back rate at gas stations — the highest among student cards we compared.

Let’s say you live a 20-mile drive from where you attend school and commute to and from class three days a week on average. Combined with your other driving, that means you need to fill your small car’s 12-gallon gas tank about once a week. Given current average gas prices around $3.44 per gallon, you would spend around $165 a month on gas.

Choosing gas as your choice 3% category could give you nearly $60 back on this expense over a year. Of course, that’s before accounting for the 2% you’ll earn on grocery essentials and the first-year bonus.

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Pros:

• Up to 8% cash back on some purchases

• No limit on rewards

• No annual fee

• Requires only fair credit to qualify

• No foreign transaction fees

Cons:

More details: You can redeem your cash back for statement credits, a check, gift cards, or toward recent purchases made with your card.

Why it’s good for students

The range of cash-back categories offered by SavorOne can offer a solid amount of cash back over time. You may have a tight budget as a student, but trips to the movies, a concert, or a sporting event can become a little more affordable with 3% savings. You’ll also get 3% back each time you eat out and for any streaming services you pay for each month.

But we like this card most for the 3% grocery category — which makes it one of the best cards for students living off-campus without a dining plan. For example, if you spend $260 a month (the average monthly grocery spend for college students), you could rack up nearly $100 each year in rewards just in this category.

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Pros:

Cons:

More details: You’ll need a minimum $300 (max $5,000) refundable deposit upon opening. You can redeem your points for travel, cash back, toward purchases, and more. There’s a 2,500 redemption minimum. As another small annual benefit, you’ll get a $15 streaming service credit after you pay for streaming (including Netflix, Hulu, Apple TV+, Spotify, and more) using your card for 11 months.

Why it’s good for students

A secured credit card can be a useful tool to help build your credit. It works like any other credit card, but the refundable deposit you make at opening will determine your credit line and act as collateral for the credit card company. That’s why secured credit cards can be easier to access than standard cards.

The drawback with many secured cards is the lack of added rewards and benefits. That’s why U.S. Bank’s Altitude Go Secured stands out for students looking to build credit — it can be incredibly valuable for earning rewards.

This card’s rewards rate on dining, in particular, is unmatched among cards available for students today. At 4x points per dollar spent, you could bring in 19,680 points on dining alone each year, assuming you spend around the average $410 that college students use for eating off-campus each month. At a redemption rate of 1 cent per point, that’s more than $196 in rewards on just dining.

Read more: See our picks for the best secured credit cards

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Pros:

• No annual fee

• Unlimited rewards

• 0% intro APR

Cons:

More details: In addition to standard rewards, you may earn up to 10% cash back on different products and categories at Amazon.com that change throughout the year. Rewards redemption options include cash back, travel through Chase, and toward purchases you make with Amazon.

Why it’s good for students

This card can save any Amazon shopper a good amount of money, but it can be especially lucrative for college students. The Prime membership required for this card typically runs $14.99 per month, or $139 per year. But as a student, you’re eligible for a discounted rate of $7.99 per month or $69 per year.

In addition to the surprising range of rewards categories for a co-branded credit card, we include the Prime Visa on this list for the 5% savings you can get on all your Amazon spending. College students going back to school spent an average of $1,367 on supplies and other back-to-college gear this year, for example. If you picked up all your necessities at Amazon using this card, that could net you $68.35 in savings — without considering all your other potential Amazon spending throughout the school year.

There’s one drawback. Unlike the other cards on this list, the Prime Visa isn’t designed for students or building credit. If you have absolutely no credit history, you may find it more difficult to qualify. Make sure you check the issuer’s site and look for pre-approval options before you apply, so you can submit your application confident you’ll be approved.

Learn more: See our picks for the best Chase credit card

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Pros:

Cons:

More details: You can redeem your rewards points as statement credits at a value of 1 cent per point toward travel and dining purchases you make with your card.

Why it’s good for students

If you’re planning to go on a study abroad program while you’re in school (or even spend a summer backpacking) this card can make a great companion. You don’t have to worry about tracking categories to maximize spending, and you can use the points you earn to wipe out your travel expenses (including flights, hotels, baggage fees, and more) and restaurant spending at school or while traveling.

This card’s 0% APR on new purchases may be helpful for study abroad expenses, too. If you’re planning to spend more than what’s in your typical budget to fund your international travel, you’ll have 15 billing cycles to pay down the cost without paying more in interest. Just make sure you have a plan to eliminate the balance in full by the end of that period — or risk taking on high interest debt.

Finally, waived foreign transaction fees can save you a good chunk of money in fees on the purchases you make abroad.

Check out our full list of the best credit cards with no foreign transaction fees

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Pros:

Cons:

• Small credit limit ($300 to $10,000)

• Fairly low cash-back rate and no bonus categories

More details: With on-time payments, you can qualify for a credit limit increase in as little as six months through Petal’s Leap program. This card also carries no late fee or returned payment fee, which can offer some peace of mind if you accidentally miss a payment.

Why it’s good for students

We like this card for students because it’s a solid cash-back rewards card that’s attainable with no credit history at all. You’ll get approved based on a Cash Score, which uses bank account information you provide and your history of paying bills on time to determine creditworthiness.

Another benefit of this card for students trying to build credit is its rewards structure. The ability to earn more in cash back alongside your positive payment history can work as a great incentive to pay on time and build a habit of good credit practices from the start of your journey.

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Pros:

Cons:

More details: You’ll need to pay a minimum $200 as a refundable security deposit upon opening. Your security deposit acts as your line of credit, so whatever amount you open the card with will also be your spending limit. You can use your rewards to get cash back, to cover purchases you make with your card, or for gift cards.

Why it’s good for students

Secured credit cards are one way for students without a credit history to access and begin building credit, but their rewards (if any) are usually much less valuable than other credit cards. We like the Quicksilver Secured because it offers the safety net of a security deposit without sacrificing the benefits of the regular cash-back Quicksilver.

Secured cards are a stepping stone to full credit responsibility, though, which is why we look for cards with a path to upgrade. With the Quicksilver secured, you’ll be considered for a higher credit limit (which can help you build your score faster) in a minimum of six months, without having to deposit more. You can also earn your deposit back over time and the chance to upgrade to the non-secured Quicksilver card — while you keep earning your flat-rate cash back.

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Pros:

Cons:

More details: You can redeem your cash back for a check, statement credits, purchases at Amazon.com, or PayPal spending. When you graduate, your card will become a standard credit card. You can call Discover to update your information and see if you’re eligible for a credit line increase — and continue using it for spending and rewards.

Why it’s good for students

Discover’s Student Cash Back card is a common choice for students — and for good reason. With rotating rewards in a range of everyday categories, you can save a lot of money on your regular expenses over time.

One of the things we like best about this card is the Cashback Match welcome offer.

Let’s say you put all the expenses you can on your Discover card and pay the balance off in full each month. Not including housing expenses, the College Board estimates a low-cost budget for college students is about $14,127 per year, or $1,177 per month. Only accounting for the 1% back outside of bonus categories, that’s around $141.27 you’d earn over the first year.

With the Cashback Match offer, you could get an additional $141.27 at the end of your first year, for a total $282.54 back — before taking any 5% categories into account.

If you are able to max out your 5% rewards each quarter by spending $1,500 in the eligible bonus categories, that’s an extra $300 you’d earn over the course of a year — and another $300 you could get matched with through the welcome offer.

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More student credit card options

The cards above are some of the best cards for students today, but there are plenty of other solid choices if you’re looking for a way to build credit and get great value. Here’s a brief look at a few more student credit card options we recommend:

The Freedom Rise card is Chase’s credit-building cash-back card option. For no annual fee, you can get 1.5% cash back on every purchase. The cash back you earn isn’t only good for cash and statement credit redemptions; you can also redeem them as points through Chase.

If you’re focused on building credit, this card has a few helpful benefits. You’ll get a $25 statement credit when you enroll in automatic payments within three months of account opening — a great incentive that can also help you avoid late fees and penalties. Chase will also automatically evaluate your account after six months to determine if you’re eligible for a credit line increase.

This is already a starter card designed to help you build credit, but you can improve your approval chances even more if you already bank with Chase. If you have an eligible Chase checking account with at least a $250 balance, you improve your chances of getting approved for the Freedom Rise card.
All information about Chase Freedom Rise has been collected independently by Yahoo Finance. Chase Freedom Rise is no longer available through Yahoo Finance.

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Discover it® Student Cash Back may be our top pick for students, but the Student Chrome from Discover may bring a lot of value to your spending, too. This no-annual-fee card has the same Cashback Match welcome offer. For rewards, you’ll earn cash back in a couple of everyday categories: 2% cash back at gas stations and restaurants up to $1,000 in combined purchases each quarter, and 1% back on everything else. If you max out the 2% category each quarter, that’s $80 cash back annually, plus your additional 1% earnings.

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Unlike many of the cards on our list, you won’t get any ongoing rewards from the BankAmericard® for Students. Instead, this card is best for students looking to maximize an introductory APR. With a 0% APR on new purchases for up to 18 billing cycles, this card has the longest intro period among credit-building cards we could find today.

How to choose the best student credit card for you

Before you apply, here are a few things to consider as a student opening a credit card.

Fees and interest rates

If you don’t have a strong history to prove to issuers that you can make your payments on time and in full, you may look like a risky applicant — even if you know you can pay your bills.

For this reason, many cards available to students and others with limited credit or no credit history may have higher fees, including annual fees, initiation fees, monthly account fees, and more. They may also carry higher interest rates than other credit cards.

Make sure you read the fine print to find any fees you might take on and how often you’ll need to pay. If a card has an unusual amount of fees, much higher fees than its competitors, or hides fee notices within the fine print of a card agreement — it’s probably best to avoid that card.

Whether you need a co-signer

If you’re under 21, it may be difficult to get approved for a credit card on your own. Under the law, credit card issuers cannot approve new cards for young adults between ages 18 and 20 unless they can prove they have the ability to make regular payments (generally based on income).

New credit card applications generally require you to provide personal information including your name, address, Social Security number, income, birth date, and more.

If you’re under 21 and don’t have a regular income, you may need a cosigner to help you open the account. This person will take responsibility for your credit card payments if you’re unable to make them yourself.

Bonus rewards categories

Student credit cards aren’t known for flashy sign-up bonuses and high-value annual credits — those are typically reserved for rewards credit cards that require higher credit.

But you can still earn rewards and take advantage of great benefits as a student. Many student rewards cards will offer cash-back rewards, which makes it easy to cash in for a statement credit or direct deposit whenever you want. Some even earn points you can redeem toward travel.

While you’re weighing options, look for rewards categories that best align with where you spend most. If you’re on a dining plan at your school, for example, you may not get the best benefit from a grocery rewards credit card. You may instead want to look for a flat rewards rate on every purchase or rewards more targeted to your budget.

Long-term use

Student credit cards, alongside secured credit cards and cards for people with no credit history, can act as stepping stones to higher-value, more lucrative credit card options. Consider choosing a credit card from an issuer that offers credit cards you may want in the future — if you like the airport lounge access benefits of the Capital One Venture X Rewards Credit Card, for example, you might want to consider one of Capital One’s student credit cards today.

While this doesn’t guarantee you’ll get approved for the card you want anytime soon, you may have the chance to upgrade your card later on, if your account is in good standing and you have a proven history of good credit habits.

Alternatively, your student credit card may one day work in tandem with a more premium rewards credit card. The Chase Freedom Rise℠, for example, earns points under the Chase Ultimate Rewards® program. In the future, you may want to use it alongside a Chase Sapphire Preferred® Card or Chase Sapphire Reserve® to boost your points value and earn rewards across the two cards’ unique rewards categories.

Making the most of your student credit card

Start maximizing your value by getting familiar with all that your card has to offer. For example, if you qualify for an intro APR on new purchases for a few months, you may want to apply when you know you have a large purchase coming up and could benefit from some extra time to pay it off interest-free.

If your student credit card offers rewards, make sure to charge all your purchases in bonus spending categories to the card so you can get the best possible return. As long as you pay your balance in full by the time your balance is due — in other words, treating your credit card like a debit card — you won’t pay any extra interest charges but can make money back in points or cash back.

But the greatest benefit of opening a student credit card can have much more lasting effects on your personal finances. The earlier you’re able to begin developing your credit history and building your credit score, the better you can set yourself up for future financial success. A good credit score can be key to everything from renting an apartment to qualifying for a mortgage to getting approved for a more premium rewards credit card.

Practice good credit habits now to make the most of your student credit card and lay the foundation for your financial future.

Read more:
Can you pay college tuition with a credit card?
Should you use a credit card to pay for college textbooks?

Building credit as a college student

Here are some tips to keep in mind as you work on building a great credit score with your student credit card:

• Pay on time. Credit cards can carry severe penalties for making late payments. Late payment fees can frequently cost up to $40 and even a single late payment could result in a penalty APR that increases your interest rate for a period of time. Set up alerts or automatic payments to ensure you always pay at least the minimum amount by your due date.

• Pay in full. While you only need to pay the minimum to avoid extra fees, paying your balance in full each month is the only way to avoid paying interest on the purchases you make with your card. There’s no benefit to carrying a balance month-to-month; in fact, it can cost you a lot of money over time, especially on credit-building cards with interest rates upwards of 20% or more.

• Keep your utilization low. Beyond payment history, credit utilization is an important factor in your credit score. This is the ratio of how much you charge to your card compared to your overall available credit. Aim to keep your utilization at 30% or below — on a card with a $1,000 limit, that’s about $300. This can be a challenge if you’re approved for a small limit or have a secured card, but as your credit score improves, you can often qualify for a higher limit and more flexibility.

• Track your credit progress. After opening your student credit card, you can access your credit score through your online account. You’re also entitled to weekly free credit reports from each of the three credit bureaus via AnnualCreditReport.com. Tracking your credit score and credit report regularly can help ensure you’re making progress toward your credit goals. You’ll also be able to quickly spot and resolve any signs of fraud or mistakes on your report.

Authorized user option

Another common way for students to build credit is by becoming an authorized user on someone else’s credit card account. If you have a parent or loved one with good credit, they can designate you as an authorized user and help you build your credit score with access to their line of credit.

You’ll typically get your own card that’s connected to the other person’s account. They’ll remain responsible for any charges you make, so you’ll need to work out how to separate payments (and any rewards earnings). If you overspend on your authorized user card without taking any responsibility for the payments, the primary cardholder could risk liability for mounting balances on their account.

As an authorized user, payment history for the account will appear on your credit report, which can help you build credit over time. If the primary cardholder misses payments or pays late, you could suffer the consequences.

This relationship requires trust on both sides; it’s important to only become an authorized user on a trusted loved one’s account with a good credit history.

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Our methodology

Building credit as a student can be one of the best ways to financially prepare for post-grad life. With that in mind, our list of the best student credit cards comprises credit-building cards, secured cards, and student credit cards with features and benefits designed to help cardholders build a solid credit foundation.

To create this list, we began by focusing on everyday spending and credit-building priorities most helpful for college students. This includes cards for groceries and study abroad, for example, and cards available to people with no credit history.

After determining the focus categories, we used our proprietary ranking system to evaluate more than two dozen credit cards aimed toward building credit. We considered all the credit cards we could find among major issuers that fell within the three card types we focused on for this list: credit-building, secured, and student.

The ranking system we developed for student credit cards looks at various card details that can add value for students. Annual fee, interest rates, 0% APR offers, rewards, and welcome bonuses are all applied. But we also looked at more targeted features, such as credit-building incentives, the ability to upgrade to a non-secured or non-student card, credit score access and reporting, and more.

Once each card was given a score using this system, we narrowed down options for our final picks to those cards that exceeded a certain threshold above the overall average for all the card options. Each card that meets this threshold has no annual, monthly, or initiation fees. They also provide credit score access, report to each of the three credit bureaus, and provide information about availability for applicants building credit.

From there, we used a more subjective view to choose the best among those cards that met our threshold and were the best fit for each of the categories already determined. Where possible, we used spending data to find the card that would offer the greatest number of rewards based on the average amount spent in a given category (groceries, dining out, school supplies, etc.). When spending data wasn’t available or relevant to the category, the chosen card may have been the highest-scoring among category options or have additional attributes that set it apart from the competition.

This article was edited by Rebecca McCracken

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Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.