Best Student Credit Cards - May 2023 (2023)

FAQs

Best Student Credit Cards - May 2023? ›

Discover it® Student Cash Back: Best feature: Student rewards. Discover it® Student chrome: Best feature: Rewards for students. Capital One SavorOne Student Cash Rewards Credit Card: Best feature: Rewards for students. Capital One Quicksilver Student Cash Rewards Credit Card: Best feature: Rewards for students.

Discover it® Student Cash Back: Best feature: Student rewards. Discover it® Student chrome: Best feature: Rewards for students. Capital One SavorOne Student Cash Rewards Credit Card: Best feature: Rewards for students. Capital One Quicksilver Student Cash Rewards Credit Card: Best feature: Rewards for students.

Student credit cards can be easier to get than other cards, but approval isn't guaranteed. Card issuers review the information on your application and check your credit history and income. You can be denied for a wide range of reasons, including poor credit or a lack of income.

Key takeaways

While student credit cards are a type of unsecured credit card, these cards are different since they are typically easier to qualify for than other cards. You'll also typically need to prove enrollment in a college, university or trade school to qualify.

According to Experian, good credit scores for college students stand at 700 and over. You'll earn a good credit score by making payments on time, keeping your credit card balances low, and limiting your applications for new credit.

Discover it^® Student Cash Back Review [2023]: A+ Rewards and a Bonus for Good Grades. The Discover it Student Cash Back card provides 5% back on rotating bonus categories, plus a cash back match after your first year as a cardholder.

Do student loans affect your credit score? A student loan doesn't affect your credit score. It also doesn't appear on your credit report. If you want to apply for finance in the future, the lender will only know you have a student loan if they ask on the application.

Students can list actual income from a job, regular bank deposits from family members or leftover financial aid as their income on a credit card application. Make sure to be honest about income on an application.

You typically have to be a student in order to qualify for such cards, and in fact, many issuers will verify your college enrollment. However, there are some student credit cards that do accept nonstudent applicants. And there are alternative credit card options that can help nonstudents who are new to credit.

Being denied for a credit card doesn't hurt your credit score. But the hard inquiry from submitting an application can cause your score to decrease. Submitting a credit card application and receiving notice that you're denied is a disappointment, especially if your credit score drops after applying.

What credit score is needed for a student credit card? ›

You should, however, aim for a FICO credit score that is at least considered fair if you want to improve your odds of qualifying for the Discover it Student Cash Back. FICO credit scores range from 300 to a high of 850, and a fair credit score is at least 580.

You do not need a credit score to get a student credit card, since student credit cards are designed to help students start building credit from scratch. If you do have a credit score, it will need to be at least 640 for you to have good approval odds for a student credit card.

To apply for a student credit card, you may need to show proof of a steady income from a part-time or full-time job or have a co-signer (a person over the age of 21 with a steady income who takes responsibility for your late or missed payments) join you in the application process.

The credit limits on student credit cards are usually less than $1,000 and typically start around $500, depending on the issuer.

This means you should take care not to spend more than 30% of your available credit at any given time. For instance, let's say you had a $5,000 monthly credit limit on your credit card. According to the 30% rule, you'd want to be sure you didn't spend more than $1,500 per month, or 30%.

What will be my credit limit for a salary of ₹50,000? Typically, your credit limit is 2 or 3 times of your current salary. So, if your salary is ₹50,000, you can expect your credit limit to be anywhere between ₹1 lakh and ₹1.5 lakh.

Good Grade Reward: Through Discover's Good Grade Reward program, you can get a $20 statement credit each school year that your GPA is 3.0 or higher, for up to five years. Introductory APR: With this card, Discover offers students 0% APR on purchases for the first six months after account opening.

No, student credit cards do not build credit faster than any other type of credit card. Most credit cards, including student cards, report to at least one of the three major credit bureaus monthly, so making payments on time and otherwise using your card responsibly will improve your credit score over time.

Getting a student credit card while in college can be highly beneficial for students with a job, or some level of income. It can help students learn how to manage credit responsibly, and get a head start on building credit. At the same time, it's important to know how to use a student credit card responsibly.

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.

Why is it so hard to get a credit card as a student? ›

Due to the Credit Card Act of 2009, it can be hard for people younger than 21 to get a student credit card without a parent co-signer unless they have sufficient independent income, and many issuers of student credit cards don't allow co-signers.

Student credit cards are designed for college students and are generally easier to get than other kinds of credit cards. The issuer may ask for proof of enrollment and of your income. Depending on your age and income, you may need a co-signer to qualify.

Income verification means the student (and if required, their parents or spouse) must submit to the college or university that they plan to attend: 1) household verification worksheet and 2) a copy of their 2020 tax return transcripts, if taxes were filed. Additional documentation may also be required by the school.

A good annual income for a credit card is more than $39,000 for a single individual or $63,000 for a household. Anything lower than that is below the median yearly earnings for Americans. However, there's no official minimum income amount required for credit card approval in general.

But generally, you should report only income that can be verified by tax returns, a letter or some other document. “Use common sense,” says Ira Rheingold, executive director of the National Association of Consumer Advocates. “If you can't prove the income exists, you shouldn't list it.”

To verify a Journey Student Rewards from Capital One, call Capital One at the number on the back of the card, visit the online card verification page or use the mobile app. Once a cardholder verifies their Capital One Journey, they will be able to start using it for purchases.

Student status is required

You'll have to confirm that you're a student to be eligible for the Capital One SavorOne Student Cash Rewards Credit Card and Capital One Quicksilver Student Cash Rewards Credit Card.

1. Payment History: 35% Your payment history carries the most weight in factors that affect your credit score, because it reveals whether you have a history of repaying funds that are loaned to you.

A bad credit score is a FICO credit score below 670 and a VantageScore lower than 661.

There's no such thing as “too many” hard credit inquiries, but multiple applications for new credit accounts within a short time frame could point to a risky borrower. Rate shopping for a particular loan, however, may be treated as a single inquiry and have minimal impact on your creditworthiness.

What is the credit limit for Chase Freedom student? ›

The Freedom Student Credit Card credit limit is $500 or more. Everyone who gets approved for Freedom Student is guaranteed a credit limit of at least $500, and particularly creditworthy applicants could get limits a lot higher than that.

To qualify for a Discover student credit card, you must be at least 18 years old, enrolled in a two- or four-year college, a U.S. citizen and have a Social Security number. You will also need to have verifiable independent income, like a part-time job, and you may have to show proof of income.

Getting a cosigner.

If you are below 21 years of age and don't have a job, one way of getting a student credit card is to apply along with an adult cosigner. In this case, the credit card provider will take the cosigner's creditworthiness into account.

Yes, credit cards do check your income when you apply. Credit card issuers are required by law to consider your ability to repay debt prior to extending a new line of credit. So, listing your annual income is a requirement on every credit card application.

According to the Consumer Financial Protection Bureau, experts recommend keeping your credit utilization below 30% of your available credit. So if your only line of credit is a credit card with a $2,000 limit, that would mean keeping your balance below $600.

But even with good credit, the average credit limit you can expect to get with a first credit card is generally between $500 and $1,000. Average credit: If you have fair credit, expect a credit limit of around $300 to $500. Poor credit: Credit limits between $100 and $300 are common for people with poor credit scores.

Breaking it down further, most college courses at schools with semesters are worth three credit hours. So on average, you would expect to take five classes a semester. That's above the usual minimum, which is 12 hours, and below the maximum, which is normally 18.

NerdWallet suggests using no more than 30% of your limits, and less is better. Charging too much on your cards, especially if you max them out, is associated with being a higher credit risk.

Is a $10,000 credit limit good? Yes a $10,000 credit limit is good for a credit card. Most credit card offers have much lower minimum credit limits than that, since $10,000 credit limits are generally for people with excellent credit scores and high income.

Is it hard to get a 5000 credit card? ›

You may have to beef up your credit score to qualify for a $5,000 limit credit card guaranteed. The most effective way to raise your score is to always pay your bills on time, without fail, and it also helps to pay down your card balances and other debt.

The credit limit you can get with a 750 credit score is likely in the $1,000-$15,000 range, but a higher limit is possible. The reason for the big range is that credit limits aren't solely determined by your credit score.

You will likely need a minimum credit score of 660 for a $50,000 personal loan. Most lenders that offer personal loans of $50,000 or more require fair credit or better for approval, along with enough income to afford the monthly payments.

Despite those high balances, it's equally important to note that those with high credit scores also have high credit card limits. For those with 800-plus scores, their average credit card limits are $69,346. That's up from the $58,514 average we found in May 2021.

Getting a student credit card can be one of the best ways to build your credit. For example, unlike student loans, if you manage your credit card right by paying it off in full each month, you won't ever have to pay any interest. It's a free way to build your credit.

If you're under the age of 21, you'll need to have someone co-sign your card application. You'll also need to provide documentation of a steady income. If you meet these requirements or are at least 21, you can use a student card to take the next step in building a strong credit history while you are still young.

While many parents may worry that their teens aren't responsible enough to handle credit cards, giving them one can help enhance young adults' financial responsibility and positively impact their credit scores long term.

As you're researching credit cards for high school students, consider a few key basics that can set you up for success. Technically, it's possible to get a credit card at 18 years old. But applicants under 21 will also need to have an independent income or a co-signer to qualify.

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.

However, while multiple cards can help keep credit utilization low, students are better off using just one credit card in most cases. One card can help a student improve their credit while avoiding excessive fees or carried balances.

Does Capital One verify student status? ›

Student status is required

You'll have to confirm that you're a student to be eligible for the Capital One SavorOne Student Cash Rewards Credit Card and Capital One Quicksilver Student Cash Rewards Credit Card.

Yes, a full-time college student can get a credit card, assuming they are at least 18 years old and have enough income to afford minimum monthly payments.

You typically have to be a student in order to qualify for such cards, and in fact, many issuers will verify your college enrollment. However, there are some student credit cards that do accept nonstudent applicants. And there are alternative credit card options that can help nonstudents who are new to credit.

Even if students don't have an income-earning job, they can use other forms of income in their credit card application like bank deposits from their family or leftover financial aid. Students must be at least 18 years old to qualify for a credit card.

Because the average age of accounts is so important to your overall credit score, you'll want to help your child pick at least one or two options that are no annual fee cards that they plan to keep long-term. Having one or two really old cards will help their credit score down the road.

The benefits of a student credit card can include financial education and resources that are available online, via app or by phone; support in developing good payment habits, in the form of alerts and reminders from your credit card issuer; and cash back and other rewards that are specifically geared toward students.

Our latest data, compiled in Bankrate's December 2021 credit card features survey, found 55 percent of 18-29 year-olds have at least one credit card. That goes up to 73 percent of 30-49 year-olds, 78 percent of 50-64 year-olds and 89 percent of those who are 65 and up.

The truth is that we all start out with no credit score at all. Credit scores are based on the information in our major credit reports, and such reports aren't even created until we've had credit (e.g., a credit card or loan) in our names for at least six months.

The general rule of thumb is that cardholders must be at least 18 years old. However, if you are under 21 and lack a credit history or have a credit history that's not great, most credit card issuers will require you to show proof of income to verify that you can independently pay your bills.