Should I get a student credit card?

Klaus Vedfelt/Getty Images

Balancing a school workload alongside the many other responsibilities of adulthood can be challenging, mainly when those responsibilities include money management. However, a student credit card can help you stay on top of your finances and build your credit during such a critical time.

However, taking on the responsibility of a student credit card can also add greater risk to your finances — and maybe you’re just not comfortable with that at this stage. How do you know whether you should get a student credit card now or a different kind of card further down the road, after you graduate?

Let’s look at a few scenarios that might help you decide whether now’s the time to get a student credit card:

When is a student card right for you?

A student credit card works like any typical credit card, but it’s geared toward those enrolled in a higher education institution. While you don’t always have to be a full-time student to qualify for a student credit card, you do have to meet specific eligibility criteria set by the issuer.

The right student credit card can offer enormous benefits for your financial journey, depending on your circumstances. Here are a few situations where you may benefit from getting a student card:

You can’t get approved for a standard card

One significant benefit of student credit cards is that they’re typically easier to get than standard credit cards. The eligibility requirements of most student credit cards are much easier.

For example, the minimum income requirements are usually lower, and you can often list several sources of income apart from having a job. Standard cards also typically require those under 21 to meet more stringent requirements, while student cards are generally easy for those 18 or older to apply for.

Some credit card issuers and credit unions will also let you upgrade to a standard card after graduation, giving you access to a higher credit limit and the chance to build your credit score even more.

You need access to emergency funds

No matter where your college journey takes you, emergencies can happen anytime. Access to emergency funds with a student credit card can be a significant lifeline when you need it the most. It could help cover emergency expenses, such as paying for a new tire, an unexpected dental procedure or a trip to the veterinarian. Whatever the emergency, a student credit card can help you handle the expense until you have the cash to pay off the balance.

You want to start building your credit history

Besides income requirements, a credit score can be another barrier for students who don’t have access to standard or premium credit cards. Many students likely haven’t even established a credit history at all at this point. Student cards can work around this by requiring a lower credit score or even no credit score for you to apply.

And because a student card is still a credit card, it’s one of the best options to start building your credit early on. Remember that your student credit card will report both good and bad credit activity like standard credit cards, so it’s essential to use it carefully.

You want to benefit from credit card rewards

While some student cards don’t offer rewards, it’s not hard to find those that do. These rewards are usually tailored to the average student’s spending habits, and redemption options are geared toward student needs.

For instance, the Discover it® Student Chrome offers:

• 2 percent cash back at gas station and restaurant purchases on up to $1,000 in combined purchases each quarter (then 1 percent)
• 1 percent cash back on all other purchases

The card also includes free FICO® Credit Scorecard access to monitor your credit score.

The Capital One Quicksilver Student Cash Rewards Credit Card is another example of a student card that earns cash back and offers other perks. The card earns:

• 10 percent cash back on purchases made through Uber & Uber Eats (through Nov. 14, 2024)
• 5 percent cash back on hotels and rental cars booked through Capital One Travel
• 1.5 percent cash back on all other purchases

In addition to all of this, the Quicksilver Student card offers extended warranty protection on purchases.

The rewards from student credit cards will rarely rival those from other standard rewards credit cards, but they can still offer an easy way to earn a little extra for purchases you’re likely making already.

Potential pitfalls of getting a student credit card

While having a student credit card can offer numerous benefits, you should carefully consider its disadvantages before getting a student credit card. Those disadvantages include:

• Higher interest rates. Student credit cards generally have higher interest rates than other cards because banks consider it riskier to lend to college students. If you carry a balance, you can face substantial interest fees.
• Lower credit limits. These cards typically have lower credit limits, which can put you at risk of maxing out your credit line. Not only does this lessen your borrowing potential, but using too much of your credit line (also known as your credit utilization) can also hurt your credit score. However, by making on-time payments over time, you should eventually qualify for an increased credit line, even with a student credit card.
• Fewer rewards. As mentioned, some student credit cards have rewards programs but usually offer fewer benefits than their regular counterparts. You’ll likely be disappointed if you’re interested in getting free flights, complimentary hotel stays or significant rewards rates through your student card.

The bottom line

If you’re a college student, getting your first credit card might be the next logical step in preparing for adulthood. If you don’t have a very lengthy credit history — or none at all — then a student credit card might be just what you need. Student credit cards are typically easier to get than traditional cards and are great tools for students who want to start building their credit history while earning some rewards.

However, a student credit card isn’t the only way to build credit. You can get a secured credit card, which requires a security deposit to establish a credit line. Another option is becoming an authorized user on someone else’s credit card. Being an authorized user allows you to make purchases against the cardholder’s credit line. When managed responsibly, this can help you build your own credit score simultaneously.

Whether you choose a student credit card, a secured card or another alternative, don’t forget to keep your credit score in mind. These options require the same responsible usage as any other standard credit card, so you must be mindful of your spending habits to build your credit profile.