What Is a Student Credit Card?

A student credit card functions similarly to any other credit card, but with rewards and features explicitly tailored to the needs of students.

Student credit cards are usually much easier because most students applying for their first credit card have little or no credit history.

These cards also provide rewards for student-centric purchases such as streaming subscriptions, dining, and Amazon purchases.

1. What Is a Student Credit Card?

A student credit card is a credit card that is designed specifically for college and graduate students with little or no credit history.

Student credit cards are easier to obtain than standard credit cards.

And they typically have no annual fees, rewards of at least 1% cash back on purchases, and credit limits of $300 or less.

Some student credit cards have low introductory APRs.

But the regular APRs on student credit cards are typically higher than the national average.

2. Why Do I Need Student Credit Card?

The primary distinction between student credit cards and standard credit cards is their eligibility requirements.

Student credit cards are designed specifically for college students, and applicants with no credit history may qualify.

A student credit card issued by a bank or credit union can be obtained whether you are a part-time or full-time student.

Student credit cards work in the same way as regular credit cards. They are unsecured, so no collateral or security deposit is required.

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You are more likely to qualify for a student credit card as a college student than for other types of credit, such as personal loans or auto loans.

A student credit card can be a useful tool as you finish your education, allowing you to pay for necessary expenses while also building credit.

Some credit card companies will allow you to transfer your account to a standard card after you graduate.

You will most likely be eligible for a higher credit limit if this occurs.

Other cards will expire shortly after graduation when your student status expires.

3. Requirements to Apply for Student Credit Card

To apply for a student credit card—or any credit card—on your own, you must be at least 18 years old.

If you are under the age of 21, you must have an independent source of income that the credit card company can verify.

Even a part-time job will increase your chances of approval.

Of course, you should be a student; your school information will most likely be requested on the application.

With student cards, having little or no credit history is usually not an issue, but if you already have bad credit, you may be denied.

In that case, you should consider getting a secured credit card, such as Chase Secured Credit Card.

4. Benefits Of Getting A Student Credit Card

Build Your Credit: You probably haven’t had the opportunity to build credit as a college student.

Your credit history and credit score have a significant impact on your life, influencing everything from apartment approval to car purchases.

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When you open a student account, you are given a credit line, which serves as your spending limit.

That credit line raises your available credit, which is equal to your credit line minus any outstanding balances.

Earn Rewards: You can earn rewards on your purchases with a student credit card. You can also get 1% cash back on everything else you buy.

Remember that rewards are an inducement to spend more.

Use your credit card only for necessary purchases to avoid interest charges and unnecessary debt.

Our top pick for a student credit card is Chase Freedom Card.

5. Risks of Using A Student Credit Card

Card companies typically view students as high-risk borrowers, resulting in higher interest rates on student credit cards.

Student card APRs typically exceed 17%, so if you miss a payment or two, the interest charges will mount quickly.

However, if you make on-time credit card payments each month and pay off your balances in full, you will avoid the additional interest that comes with these higher rates entirely.

In addition to high-interest rates, student credit card issuers typically grant lower credit limits.

Once you’ve demonstrated your creditworthiness by making consistent, on-time payments.

Your issuer may automatically increase your credit limit, or you can contact them and request a higher credit limit.

However, you will typically be left with a low credit limit until then.

In conclusion, a student credit card can be an excellent way to begin building credit early in life, making it easier to achieve life’s major milestones.

Your first priority should always be to pay your credit card bill on time and in full.

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Conduct your research and select the card that best meets your specific financial needs.

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