Best Credit Cards For College Students Of 2020: Money Under 30’s Top Picks

While in college, you have the opportunity to learn about using credit—in particular, credit cards—responsibly. By doing so, you’ll also build the credit history that may be invaluable just a few years down the road.

While it can be difficult to get approved for a new credit card with a limited credit history, there are several major banks that offer credit cards designed specifically for college students.

Why choose a student credit card?

Basically, being in college can help make up for the fact that you don’t have much of a credit history yet. Banks may be willing to extend a small amount of credit to college students in the hopes of winning a long-term customer who will be graduating into a well-paying job.

But wait: Isn’t that kind of evil? Don’t they just want me to go into debt that I won’t be able to pay off for years and years so they can collect hundreds in interest?

Well, the truth is: Yes, credit card companies make money when you charge things you can’t pay off right away. You have to know yourself.

Might you be tempted to overspend with a credit card in hand? Then you might want to wait until you’re working to get one. If you’re responsible, however, a student credit card can help you build credit and earn rewards on your purchases at no cost to you.

About student credit cards and the law

For the obvious reason we mentioned above, student credit cards were once seen as a predatory lending product. Colleges were inundated with representatives from the banks that were happy to offer t-shirts, duffel bags, and other gifts to students in exchange for a completed application. Furthermore, students were routinely granted lines of credit without any consideration of their ability to repay. Ultimately, many parents ended up reluctantly paying off their adult children’s debt. Worse, many students graduated saddled with thousands of dollars in credit card debt.

But since the CARD Act of 2009 took effect, credit card issuers are effectively banned from offering merchandise on campus. Adults between the ages of 18 and 21 now have to show a means to repay a loan before they can be granted a new line of credit.

This means that students have to have a part-time job, be part of a work-study program, or show some other means of income. Alternatively, some card issuers such as Wells Fargo and U.S. Bank will allow students to apply for a credit card with a co-signer.

Keep in mind that both people on the application become equally responsible for the repayment of the loan, even if one of the other fails to pay anything.

Overview of the best credit cards for college students

5 of the best credit cards for college students

Not all issuers offer student credit cards. You’ll also have to keep in mind that the rates and benefits of student credit cards aren’t as competitive as those on cards marketed to consumers with longer credit histories. But college students can still snag a card with no annual fee and a rewards program. You just need to know where to look. Here are five credit cards for college students to consider:

Discover it® Student Cash Back

The Discover it® Student Cash Back has many of the same perks as the Discover it® Student chrome  (which comes in at our #2 slot, see below), but employs a different cash back strategy. Instead of a flat 2% on gas and restaurants up to $1,000 per quarter, plus 1% elsewhere, this card offers 5% on up to $1,500 spent each quarter, though the category eligible for cash back changes every quarter and you must activate each time.

It includes appreciable benefits for students such as $0 annual fee and an introductory See Terms APR on purchases for See Terms, then the regular rate of See Terms will apply. Students are also exempt from foreign transaction fees and over limit fees. Late payments don’t raise APR or charge fees for the first occurrence.

Alongside a free FICO score in each statement, Discover makes it easier for students to practice financial discipline.

• Good Student Bonus: Earn a $20 statement credit for each year that your GPA is above 3.0 for up to the first five years.
• Rolling Rewards: 5% cash back on up to $1,500 every quarter in a different purchase category including gas stations, wholesale clubs, restaurants, and Amazon.com. Quarterly activation required.
• Discover automatically matches the total amount of cash back earned at the end of your first year

Learn more about the Discover it® Student Cash Back

Discover it® Student Chrome

This card offers 2% cash back at gas stations and restaurants on up to $1,000 in combined spending each quarter. Users get 1% back on all other purchases.

Discover it® Student chrome also gives you See Terms of See Terms APR introductory financing on new purchases. Other benefits include 24/7 fraud monitoring and price protection.  After the intro rate expires, the ongoing APR becomes See Terms.

Discover has no penalty interest rate and will automatically waive your first late payment fee. There’s no annual fee for this card, and no foreign transaction fees.

Learn more about Discover it® Student chrome

Journey® Student Rewards from Capital One

This card features 1% cash back rewards on all purchases, and those rewards increase to 1.25% when you make your payments on time.

New applicants also receive access to a higher credit line after making their first six monthly payments on time. You can also track your credit score with Capital One.

There is no annual fee for this card, and no foreign transaction fees.

Learn more about Journey® Student Rewards from Capital One®

Bank of America® Travel Rewards Credit Card for Students

This student card offers rewards for spending that are competitive with non-student cards. You earn and unlimited 1.5 points per dollar spent on all purchases, and points are worth one cent each as statement credits towards travel reservations.

There is no annual fee for this card, and no foreign transaction fees.

Wells Fargo Cash Back College Card

This card offers students both a low introductory interest rate and cash back rewards. New cardholders receive six months of 0% APR introductory financing on both new purchases and balance transfers, with a 3% balance transfer fee.

You also get 3% cash back rewards on all gas, grocery, and drugstore purchases for the first six months after opening your account, and 1% cash back on all other purchases.

There’s no annual fee for this card.

Other starter credit cards

Not a full-time student? You can still find many good starter credit cards. If you have some established credit history (for example, a student loan or car loan), check out the best credit cards for young adults and young professionals. If you’ve never had a loan or credit card before, you may need to start with a secured credit card.

Not sure you want a student credit card? Finding the right credit card for you is much simpler if you know your credit score, and can narrow your search to only the cards you know you’ll get approved for. We’ve made it easy for you. If you don’t already know your score, use our quick and free Credit Score Estimator tool – then find the perfect card for you!

• Best credit cards for a credit score over 750
• Best credit cards for a credit score between 700 – 749
• Best credit cards for a credit score between 650 – 699
• Best credit cards for a credit score between 600 – 649
• Best credit cards for a credit score under 599

Summary

*5% cash back categories have a $1,500 max spend and require quarterly activation

Student credit cards offer a low-risk way for young people to establish a credit history before entering the “real world”. Building up your credit history may seem unimportant when you have things like finals or finding a summer internship to think about, but starting early and building up your credit history is one of the best things you can do for your future self.

Without a credit history, you will find it impossible to get approved for a large loan (like a mortgage or auto loan) because your credit history is a critical factor in determining your overall credit score.

Opening a credit card account is the best way to build credit history, and opening a student credit card while you’re still young offers the additional chance to make responsible credit card habits second nature. Even if you don’t need (or want!) a credit card, you should use it monthly to buy some groceries or a tank of gas, making sure that you pay it off in full every month before your monthly statement.

Don’t apply for a credit card until you have some income coming in and you feel you can handle the responsibility. But when you’re ready, the cards mentioned here are some of the best available for enrolled college students.

Read more:

• The Best Credit Cards For Young Adults
• When And How To Get Your First Credit Card