Best Student Credit Cards of March 2021

For students just beginning to build a credit history, credit cards can be complex and confusing. But opening your first credit card can be the first step to securing the credit profile you’ll need for important financial milestones after graduation and beyond, from your first car loan to a home mortgage. 

Many issuers offer credit cards specifically designed for students. A student credit card is a natural step toward becoming financially independent from your parents and can help you along the path to building credit. Student credit cards can also offer great perks to help maximize your spending, like cash back rewards, benefits, and no annual fees. 

Here are NextAdvisor’s picks for the Best Student Credit Cards:

Best Student Credit Cards

Best Student Credit Cards Summary 

Bank of America Cash Rewards Credit Card for Students 

Good For: Flexible Budgets 

You’ll earn 3{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back on a category of your choice from online shopping, dining, travel, drug stores, or home improvement/furnishing, 2{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back at grocery stores and wholesale clubs, and 1{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back on all other purchases. The 3{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} and 2{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back categories apply to the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5}.

Chase Freedom Student credit card

Good For: Rewarding Good Credit Habits

You’ll get 1{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back on every purchase in addition to some nice perks like a $50 welcome bonus, complimentary DashPass from DoorDash, and 5{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back on Lyft rides through March 2022. Plus, earn a higher credit limit and $20 annual credits for making your payments on time and keeping your account in good standing.

Discover it Student Cash Back 

Good For: Cash Back on Rotating Categories

Earn 5{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back on rotating bonus categories each quarter after activation (up to $1,500 in quarterly purchases, then 1{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5}), first-year cashback match and a $20 statement credit for good grades each year (3.0 GPA or higher, up to 5 years). Categories for 2021 include grocery stores, CVS, Walgreens, and purchases from Amazon.com, among others. 

Discover it Student chrome

Good For: Campus Commuters

Earn 2{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back at gas stations and grocery stores (on up to $1,000 in combined purchases each quarter, then 1{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5}), plus first-year cashback match and $20 annual statement credit for good grades (3.0 GPA or higher, up to 5 years). This card is a money-saver if you have your car on campus, or tend to eat out around town. 

Journey Student Rewards from Capital One

Good For: Study Abroad  

You’ll earn 1{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} cash back on every purchase with the Journey Student Rewards from Capital One card. Boost that rewards-earning up to 1.25{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5} when you pay your bill on time. Plus, no foreign fees make it an excellent choice for any post-pandemic international travel.

Card	What It’s Good For	Intro Offer
Bank of America Cash Rewards Credit Card for Students	Flexible Budgets	$200 online cash rewards after making at least $1,000 in purchases in the first 90 days of account opening
Chase Freedom Student Credit Card	Rewarding Good Credit Habits	$50 after you make your first purchase within the first 3 months from account opening
Discover it Student Cash Back	Cash Back on Rotating Categories	Discover will match all of the cash back you earn at the end of your first year
Discover it Student chrome	Campus Commuters	Discover will match all of the cash back you earn at the end of your first year
Journey Student Rewards from Capital One	Study Abroad	N/A

How Do Student Credit Cards Work? 

Student credit cards work just like regular credit cards, but they’re more accessible for first-time users. You’re more likely to be approved with little to no credit history for a student card — perfect for students just beginning their credit journeys. 

How Can Students Use Credit Cards?

Students should use credit cards to build their credit history, while paying for everyday expenses like books, food, rent, or gas. Just make sure you pay off your credit card bill on time and in full each month to begin your positive payment history, and forgo high-interest debt by spending only what you can afford to pay off.  

Why Should College Students Have a Credit Card?

A student credit card is a great way to begin building your credit history. Good credit will be important for your first moves post-grad — getting approval for a lease, financing a car, or even a cellphone — as well as financial decisions later on, like buying a house. 

You’ll likely have expenses every month you’ll need to pay for anyways, like groceries and utility bills. Charging those regular expenses to a credit card can help you save with rewards and start building your credit history at the same time. 

What Types of Student Credit Cards Are Available? 

Students (or anyone with little to no credit history) won’t have access to every credit card on the market, but there are several cards designed for students that can help you maximize your spending and build credit. 

Many student credit cards offer rewards — meaning you’ll be able to earn cash back, points, or other perks on your spending. Other student credit cards don’t have any rewards but can still help you build your credit. 

You can also choose to open a secured credit card, which requires a cash security deposit that acts as your credit limit. After you’re approved and submit the deposit, you can use a secured card like any other credit card, and begin building your credit. 

What Should Students Know About Getting a First Credit Card?

Getting your first credit card is a big responsibility. You’ll want to establish healthy credit habits once you open your card. If you don’t pay off your credit card balance each month, you’ll have to pay interest on whatever you owe, which can lead to long-lasting and snowballing debt balances. Use your credit card like a debit card and pay off your balance on time and in full every single month. 

What Should You Do With a Student Credit Card After Graduation?

While you must be a student to get a student credit card, you can continue using your student card even after you graduate. If your student card still suits your needs and you’re using it responsibly, you can keep using it just as you did when you were in school. But you have other options, too.

If you used your student card to establish a good credit score throughout school, you may now qualify for non-student cards with better rewards, higher credit limits, or other features that are better suited for your credit needs. 

After opening a new card, you should consider keeping your student credit card account open — even if you no longer use it. Closing that account (especially if it’s one of the oldest accounts on your credit report) can have a negative effect on your credit score. As long as it’s not costing you an annual fee, it’s often a good idea to keep the account open and use it only occasionally or set up a recurring payment that you can easily pay off each month.

Another way to get a new card that better fits your post-grad needs without closing your old student account is by asking your issuer for a product change. For example, if you have a Chase Freedom Student card, you might ask Chase to upgrade your account to a Chase Freedom Flex or Freedom Unlimited. This way, your longstanding account remains open, but you get the perks and potentially higher credit limit of a non-student card. Each issuer has its own guidelines for product change requests, but you can get more information by calling the number on the back of your card.  

What Are Credit Card Best Practices? 

• Make your monthly payments on time
• Pay off your card balance in full each month
• Avoid applying for several credit cards within a short time period. Use your credit score to determine your approval odds before applying to reduce new card denials.
• Be aware of your credit utilization ratio, or the amount of credit you use compared to the total amount available to you. Try to keep it under 30{d54a1665abf9e9c0a672e4d38f9dfbddcef0b06673b320158dd31c640423e2e5}. 

What Card Features Are Essential to Understand?

Make sure you know what your minimum monthly payment is — or the amount you have to pay on your credit card to avoid paying late fees or penalty APRs. Always pay at least this amount by your statement due date to avoid even higher interest rates and late fees.

Beyond the minimum payment, pay your full credit card balance each month whenever possible. Any remaining balance will start to incur interest after your monthly due date — and can lead to debt quickly.  

What Are the Costs of Credit Cards?

Credit cards can come with all sorts of fees for certain actions if you’re not careful. Make all of your payments in full and on time to avoid late fees and interest charges on a lingering balance. You can also get hit with fees for things like cash advances (if you use your credit card to pull out cash from an ATM). 

Some credit cards charge an annual fee that you must pay every year just for owning the card, though many student cards don’t have one. Cards may charge a foreign transaction fee on purchases you make in a foreign currency, or have fees for spending over your allotted credit limit. 

Keep tabs on your card’s fees (which you can find in the terms and conditions of your card agreement), and try to avoid them whenever you can. Though the charges may seem small at first, they can add up quickly and become a larger problem later on. 

Methodology 

Many, but not all, major issuers offer student credit card options geared toward first-time credit card users without great credit or an established credit history. To determine our picks for the best student cards, we evaluate credit-building features for students as well as card details like rewards structure, introductory bonus, annual fee, and ongoing APR.