Best Credit Building Credit Cards for Students

Building credit as a student is a crucial step towards financial independence. A good credit score can open doors to better loan terms, lower interest rates, and even favorable job prospects. One of the best ways to start building credit is by using a credit card responsibly. This article explores the best credit building credit cards for students, providing insights on how to choose the right card and use it to your advantage.

Why Students Need to Build Credit

As a student, you might wonder why building credit is important. A good credit score can help you:

• • Qualify for loans with better interest rates.

• • Rent an apartment without a co-signer.

• • Get approved for future credit cards with higher limits and rewards.

• • Enjoy lower insurance premiums.

Starting early gives you a head start on building a solid credit history, which is essential for your financial future.

How to Choose the Right Student Credit Card

When selecting a credit card, consider the following factors:

Interest Rates and Fees

Look for a card with a low interest rate and minimal fees. Many student credit cards offer a 0% introductory APR, which can be beneficial if you plan to carry a balance initially.

Rewards and Benefits

Choose a card that offers rewards for spending, such as cash back, points, or miles. Additionally, look for benefits like fraud protection, travel insurance, and purchase protection.

Credit Reporting

Ensure the card issuer reports to all three major credit bureaus (Experian, Equif ax, and TransUnion). This will help you build credit more effectively.

Eligibility Requirements

Some student credit cards require a co-signer or proof of income. Make sure you meet the eligibility criteria before applying.

Best Credit Building Credit Cards for Students

Discover it® Student Cash Back

Rewards and BenefitsThe Discover it® Student Cash Back card offers 5% cash back on rotating categories each quarter, such as gas stations, grocery stores, restaurants, and more. You also get unlimited 1% cash back on all other purchases.Key Features

• • No annual fee.

• • Dollar-for-dollar match of all cash back earned at the end of the first year.

• • Good Grades Reward: Earn $20 statement credit each school year your GPA is 3.0 or higher (for up to five years).

Why It’s Great for StudentsThis card not only helps you build credit but also rewards you for good grades. The cash back rewards and first-year cash back match can add significant value to your spending.

Journey Student Rewards from Capital One

Rewards and BenefitsThe Journey Student Rewards card offers 1% cash back on all purchases. Additionally, if you pay on time, your cash back rate increases to 1.25% for that month.Key Features

• • No annual fee.

• • No foreign transaction fees.

• • Access to a higher credit line after making your first five monthly payments on time.

Why It’s Great for StudentsThis card encourages responsible credit use by rewarding timely payments. The lack of foreign transaction fees makes it a good choice for students studying abroad.

Deserve® EDU Mastercard for Students

Rewards and BenefitsThe Deserve® EDU Mastercard offers 1% unlimited cash back on all purchases. Additionally, it provides a one-year Amazon Prime Student subscription (a $59 value) after spending $500 in the first three billing cycles.Key Features

• • No annual fee.

• • No security deposit required.

• • No foreign transaction fees.

Why It’s Great for StudentsThis card is ideal for international students and those without a credit history, as it does not require a Social Security number for application. The Amazon Prime Student benefit adds extra value for students who shop online frequently.

Bank of America® Cash Rewards Credit Card for Students

Rewards and BenefitsThe Bank of America® Cash Rewards Credit Card for Students offers 3% cash back in a category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings), 2% at grocery stores and wholesale clubs, and 1% on all other purchases.Key Features

• • No annual fee.

• • $200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days.

• • Introductory 0% APR for the first 15 billing cycles on purchases and balance transfers.

Why It’s Great for StudentsThis card provides flexible cash back options, allowing you to choose the category that best fits your spending habits. The introductory APR and cash rewards bonus are additional perks for new cardholders.

Chase Freedom® Student Credit Card

Rewards and BenefitsThe Chase Freedom® Student Credit Card offers 1% cash back on all purchases. Cardholders also receive a $50 bonus after making their first purchase within the first three months.Key Features

• • No annual fee.

• • $20 Good Standing Reward after each account anniversary for up to five years.

• • Access to Chase’s Credit Journey, a free credit monitoring service.

Why It’s Great for StudentsThe Chase Freedom® Student Credit Card is straightforward, offering consistent cash back rewards and a simple rewards structure. The Good Standing Reward encourages responsible credit behavior.

Discover it® Secured Credit Card

Rewards and BenefitsWhile not specifically a student card, the Discover it® Secured Credit Card is an excellent option for building credit. It offers 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter) and 1% on all other purchases.Key Features

• • No annual fee.

• • Refundable security deposit as low as $200.

• • Automatic reviews starting at eight months to see if you can be transitioned to an unsecured line of credit.

Why It’s Great for StudentsIf you have no credit history or a poor credit score, this secured card can help you build or rebuild your credit. The cash back rewards and potential to upgrade to an unsecured card make it a valuable tool for students.

Tips for Using Student Credit Cards Wisely

Pay Your Balance in Full

Always aim to pay your balance in full each month to avoid interest charges and debt accumulation. This practice also helps build a positive payment history, which is crucial for your credit score.

Keep Your Credit Utilization Low

Credit utilization is the ratio of your credit card balance to your credit limit. Aim to keep your utilization below 30% to positively impact your credit score. For example, if your credit limit is $1,000, try to keep your balance below $300.

Monitor Your Credit Report

Regularly check your credit report for errors and signs of fraud. Many credit cards offer free access to your credit score and monitoring services. Staying informed about your credit status helps you make better financial decisions.

Avoid Applying for Multiple Cards

Each time you apply for a credit card, it results in a hard inquiry on your credit report, which can temporarily lower your score. Avoid applying for multiple cards within a short period to protect your credit score.

Use Rewards Wisely

Maximize the benefits of your student credit card by using rewards strategically. For example, use cash back rewards to pay down your balance or save them for larger purchases.

FAQs

What is the best credit card for students with no credit history?The Discover it® Student Cash Back and the Deserve® EDU Mastercard for Students are excellent options for students with no credit history. They offer rewards, no annual fees, and are designed to help you build credit.How can a student improve their credit score?To improve your credit score, make sure to pay your bills on time, keep your credit utilization low, monitor your credit report for errors, and avoid applying for multiple credit cards within a short period.Are student credit cards worth it?Yes, student credit cards are worth it if used responsibly. They help you build a credit history, which is essential for future financial endeavors. Plus, many student cards offer rewards and benefits tailored to students’ needs.ConclusionChoosing the right credit card is a crucial step in building your credit as a student. By considering factors like interest rates, fees, rewards, and credit reporting, you can select a card that meets your needs and helps you build a strong credit history. Cards like the Discover it® Student Cash Back, Journey Student Rewards from Capital One, and Deserve® EDU Mastercard for Students offer valuable rewards and benefits tailored to students. Remember to use your credit card responsibly, pay your balance in full, and monitor your credit regularly to ensure a positive credit-building experience. Start building your credit today with one of these top credit building credit cards for students and pave the way for a secure financial future.