Some would say that students and credit cards don’t mix well.
In many cases that’s correct. It’s quite easy for a student, new to credit cards, to get himself neck-deep in credit card debt (in fact the CARD Act of 2009 has made it harder for credit card companies to market to students under 21).
But for others, a credit card is a great tool to have as a student.
When used responsibly, a credit card gives a student an easy means to pay for things like books without having to have the cash on hand as yet.
A student credit card also gives a student a head-start in building up a credit history. A few extra years of building up a positive credit hostory could mean thousands in savings later on with a great credit score.
But which student credit card is right for you?
I’ve reviewed some of the best student credit cards so you have a place to start to see which card is right for you. This list doesn’t show all cards so if you think there’s one that deserves mention please let me know!
Best Credit Cards for College Students
Discover it® for Students with $20 Cashback Bonus
This new Discover card aims to make credit cards fair for the people who use them. That’s great news for students!
You get no annual fee, no over limit fee, no foreign transaction fees (great for when you travel), and no pay-by-phone fee. Make a mistake and pay late? Your first late payment won’t have a late fee.* [But really, do what you can to pay on time.] You also won’t see your APR increase for paying late.*
The card is also flexible since you choose your own due date and can pay online or by phone up to midnight ET on your due date.
And then there’s cash back. You get 5% back in categories that change throughout the year on up to $1,500 in purchases. All other purchases earn you 1%.* It’s easy and free to sign up.
There’s also $0 Fraud Liability Guarantee so you won’t have to pay on unauthorized purchases.
Get a jump start on your cashback with a $20 bonus when you make your first purchase within your first 3 months of approval.* This card carries a variable purchase APR rate of 12.99%-18.99%. Check Terms & Conditions when applying.
Citi Forward® Card for College Students
There’s no cosigner required (see site for details).
You can earn APR reductions when you use your credit wisely.
Now check this out – you get rewarded for paying on time. You can earn up to an APR reduction when you make a purchase, pay on time, and stay under your credit limit (see details at site).
Earn ThankYou® points for your purchases. You get 5 for every $1 you spend at restaurants and on entertainment. You also get 1 point for every $1 spent on all other purchases.
Earn up to 1,200 ThankYou® points when you pay on time and stay under your credit limit (you can earn 100 points each billing period).
There’s also an introductory 0% interest rate for 7 months on purchases (it’s variable after your 7 months are up). And no annual fee for this car.
Citi® Dividend® Card for College Students
This Citi card requires no cosigner to get the card (you will be asked about your income though).
Students will also get the chance to earn cash back on their purchases.
Here’s how it works: You earn bonus cash each quarter on new categories like travel, departments stores, and more. All other purchases earn 1%. Every quarter you can enroll in new categories that earn cash back (enrollment is free).
To help students control their spending, Citi has free credit educations tips and tools that you can use.
There’s also 0% intro APR on purchases for the first 7 months you have the card (make sure you pay off your balance before then to avoid interest charges). There is no annual fee for this card.
Discover it® for Students
This Discover it card is similar in many most ways to the Discover it card above. The main difference is this card doesn’t have the $20 cashback bonus. Instead you get a 0% intro APR on purchases for 6 months. After your 6 months you’ll have a variable APR rate from 12.99%-18.99%.
If you are planning on making some big purchases then the 6 month 0% intro APR rate may be really valuable to you. As with the other card Terms & Conditions apply so make sure you check the details when you apply.
Here’s a chart summarizing the best college student credit cards:
Best Credit Cards for College Students
| Card | Card Name | Intro Purchase APR | Annual Fee | Reward Type | Notes |
|---|---|---|---|---|---|
 | Discover it® for Students with $20 Cashback Bonus | Variable 12.99%-18.99% | $0 | Cash Back | - Earn 5% cash back on categories that change throughout the year on first $1,500 in purchases. - 1% cash back on all other purchases. - $20 Cashback Bonus |
| Citi Forward® Card for College Students | 0% intro APR for first 7 months | $0 | Points | - Earn APR reductions when you pay on time and stay under credit limit. | |
| Citi® Dividend® Card for College Students | 0% intro APR for first 7 months | $0 | Cash Back | - Enroll to earn 5% cash back on eligible purchases at Macy's, Electronics stores and Toy stores October 1 through December 31, 2012 - 1% cash back on all other purchases. |
|
 | Discover it® for Students | 0% intro APR for first 6 months | $0 | Cash Back | - Earn 5% cash back on categories that change throughout the year on first $1,500 in purchases. - 1% cash back on all other purchases. - No annual fee, no over limit fee, no foreign transaction fee, no pay-by-phone fee, no fee on first late payment. |
Remember, if you carry a balance from month-to-month and are paying interest then you are pretty much negating any bonuses you might get with your card. Start building up your credit history right by paying in full every month and by paying on time.
Used wisely, a credit card is a great convenience and tool for a college student. You also have the opportunity to take advantage of rewards or cash back for your purchases.
But the key is to use your credit card wisely!
* See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the “Apply Now” button, you can review the credit card terms and conditions on the issuer’s website. Discover is a paid advertiser of this site.
Those are some strong credit card offers. It definitely helps to start a credit history as early as possible. It helped me secure a mortgage before I could grow a beard.
Haha, that’s funny about the beard but you are so right!
Nice reviews – and timely. The kids are heading back to school pretty soon.
Thanks!
Don’t forget the secured cards. I like to think about them like credit cards with training wheels for people that are not used to living with raw unsecured credit yet.
Yes, a secured credit card is a nice option as well, especially if the student is the one that has to put up the security (this way it’s their money on the line, so to speak).
I highly recommend college students opening up a credit card to build up their credit. However, if it is too much of a temptation for said student then I said avoid them at all cost. But if they have self-control and discipline then it is always a good idea to get a head start!
Most new cards don’t have very high credit limits. I remember my first card only had $500. That’s a small enough amount to work on your discipline without getting too out of control. But for some, even that may be too much.
Hi Glen,
I would agree that having a credit card as a student isn’t a bad idea. It gives them credit history, teaches them responsibility, accountability and discipline if used correctly. Granted I guess that is the catch, “if used correctly”.