Choosing a student credit card that’s right for you

Over the past few years, several new players have entered the student credit card market. Chase introduced Chase Freedom® Student, Chase’s first credit card dedicated to students, in 2019, and Capital One introduced two competitive student cards in August 2021. These add-ons provide many benefits, but can make it even more difficult to choose a starter credit card.

Student credit cards offer a great opportunity to test the card’s features and see if they fit your lifestyle, but they can vary greatly. So how do you decide which one is best for you?

Student cards are designed with newbies in lending in mind, so they often come with more modest earning rates and higher interest rates. However, many of them offer valuable benefits that can help you learn how to make timely payments, build your credit history and earn points, and earn points or get refunds.

Decide which features are best for you

Selecting the features that matter most to you is the first step in choosing a student ID card. As a first step towards using credit cards for purchases, some offer rewards programs that allow you to earn points or cash back, while others have more reasonable interest rates and fees. Unfortunately, student cards usually only work well in one of these areas, not both.

Characteristics of a student card that you should pay attention to:

• Awards: Cashback, points or miles are a great incentive to use your card responsibly, especially if you earn them on your most frequent purchases like groceries or gas. Signup bonuses are also worth considering.
• Waiver of late feesA: Most credit cards charge late fees, but some student cards waive the fee once or more.
• No fees for foreign transactionsA: If you are planning to travel or study abroad, you can save money by using a card with no foreign transaction fees.
• Automatic payment or payment remindersA: If you’re worried about forgetting to pay your bill, being able to set automatic payments can reduce your stress. Payment reminders can also be helpful.
• No penalty per yearA: If you are late on your statement payment by a certain number of days, most credit cards will result in a penalty of an APR, which is higher than the regular APR. If you’re worried about late payments, an APR-free card can be a good defense.
• Low interest rateA: If you pay the balance of your statement in full each month, the interest rate doesn’t really matter. But if you have a balance, you need to look for a card that will keep your interest payments to a minimum.
• 0 percent introductory annualA: If you want to go months without worrying about interest charges while paying for a large purchase, or get into the habit of making payments on time, a zero interest rate card will work in your favor.
• Automatic consideration of the issue of increasing the credit lineA: Most student credit cards have a low credit limit, often less than $1,000. Some student card issuers automatically check your account for upgrades after a few months, which can improve your credit score.
• Financial Education ResourcesA: Budget management tools and credit score monitoring are common resources offered by student cards that can be helpful if you’re focused on building healthy habits.

You can focus on the reward level if:

• You feel confident making your monthly payments on time.
• You intend to pay off your balance in full each month.
• You are delighted to receive cashback or points.

You can focus on beginner-friendly features if:

• You might be able to show some leniency when it comes to fines and fees, such as late fees.
• You may carry a balance from time to time and could benefit from a lower interest rate.
• Your main goal is to build your credit and establish healthy financial habits.

Depending on which card features make the most sense for your spending—whether you want to practice budgeting and making monthly payments, or the ability to earn rewards—you can narrow down your options.

Best student cards at low rates and fees

If you’re looking for an introduction to credit card ownership that won’t charge you high rates and fees while you get used to making monthly payments, the following student cards might be the best ones for you.

Both of these cards offer good starting annual interest rates, so you can get used to payments without worrying about significant interest payments. Plus, none of them charge an APR penalty, so your rate won’t skyrocket if you miss a payment. However, although one of these cards offers a rewards program, it is not particularly lucrative.

Best student tickets for rewards

If you’re not that worried about rates and fees and are excited to start earning card rewards, there are also plenty of cards that introduce students to the reward card space. Whether you prefer flexible Chase Ultimate Rewards, Citi ThankYou points or cashback, there are many student cards that offer good earning rates.

All of these cards are a great option for reward seekers as they offer good reward rates or an introduction to some of the most valuable card reward programs. On the other hand, many have higher annual percentages or commissions than cards without a rewards program.

What to do if you do not meet the requirements for a student ID card?

If you don’t have a credit history and don’t qualify for one of these student credit cards, you still have a few other options. If a parent wants to add you to one of their credit cards as an authorized user, this is one way to improve your credit history without being eligible for a credit card for yourself.

Many secured credit cards are also available to users without a credit history. While these cards usually don’t have any kind of rewards program and require a deposit, they can help you continually improve your credit history so you can qualify for a better card in the future.

bottom line

Although there are not as many cards available for students as general reward cards, there are still many good options for new cardholders. Whether you’re looking for a card that teaches good credit habits and makes fees easier, or a card that lets you accumulate rewards, you can find a student card that fits your lifestyle.

*All BankAmericard student bank card information has been independently collected by CreditCards.com and has not been verified or approved by the issuer.

Barri Segal is a staff reporter for CreditCards.com with over 20 years experience in the publishing and advertising industry, writing and editing articles for all styles, genres, media and audiences.