The conundrum of getting a credit card as a broke college student is that you are broke. What are you going to buy if you don’t have any money? And how do you get a credit card when you have no credit and little to no income as a college student? The best credit cards for college students swoop in to the rescue!
In an ever increasing cashless society, getting a credit card is important for convenience, buyer protection, and safety. Fortunately, credit card issuers are eager to get college students as customers. But, you’ll need to spend and pay your bills responsibly.
You also want to start building your credit as early in your adult life as possible. A good credit score and a good credit report will let you rent an apartment easier and get lower rates for future loans, like if you want to get another credit card, borrow money for a car, and get a mortgage for a home.
Finally, you should try and reduce student loan debt by working part-time while studying. Even better, work in a space that you find industry to build experience for your career. A college degree is devaluing in a post coronavirus world.
Start Building Your Credit In College
You’ve got to start somewhere, and building your credit by getting a credit card in college is a great time to start. It’s important though that you always pay your bills on time and never have revolving credit card debt. The average interest rate on a credit card today is ~17%, which is expensive.
If you’re a student looking for ways to build credit, or you simply want to find a credit card with rewards to increase your buying power, there are several options to choose from. I’ve spent dozens of hours looking through hundreds of credit cards to find the best student credit cards for you.
Frankly, there are many unattractive credit cards out there that shouldn’t be in existence. Don’t waste your time with those. Instead, focus on these two – the best of the best student credit cards.
Best Credit Cards For College Students
There are dozens and dozens of credit cards out there, but only a select number are targeted specifically for students. Here are the best credit cards for college students today.
Top Two Best Credit Cards For College Students Quick Navigation:
- Deserve Edu Mastercard
- Journey Student Rewards from Capital One
Deserve Edu Mastercard
The Deserve Edu MasterCard is especially great for international students, because a social security number is not required to apply. It’s also great for students without any credit history who want to begin building the right habits.
Deserve is a mission-oriented company that’s “helping the next generation of credit owners gain financial independence through access to fair credit products.” If you are a value-drive and mission-driven student, then the Deserve Edu Mastercard could be for you.
You can earn 1% cash back on all purchases with the Deserve Edu Mastercard. It comes in the form of statement credits, meaning that as soon as you accrue $25 in rewards, you’ll get that cash applied to your statement balance. This is the responsible way to use your benefits compared to using rewards to buy more things.
Even More Features
You can also apply without needing a security deposit or cosigner. The card offers credit lines of up to $5,000, which should be more than enough as a broke college student. But if you’re an international student looking to build credit, you probably are not broke and have healthy financial means.
The Deserve Edu Mastercard includes Mastercard Platinum Benefits such as ID theft, fraud protection, car collision damage insurance for rental cars, and more.
Finally, the Deserve Edu Mastercard also includes complimentary Amazon Student Prime for one year. My family is a member of Amazon Prime and we use it almost daily for supplies, snacks, groceries and any item you can imagine under the sun. You can also watch Amazon original shows as well.
Even more benefits of the Deserve Edu Mastercard include:
- $0 annual fee
- 1% cash back on all purchases
- Free Amazon Prime Student for one year
- No foreign transaction fees
- Helps build your credit history
- Includes free cellphone insurance up for $600
Journey Student Rewards from Capital One
The Journey Student Rewards from Capital One card is one step up from the other two beginner credit cards. This credit card is good for those who already have been responsible with another credit card for a year and who already have a decent credit score of 680 or higher.
You’ll get 1% cash back on all your purchases, which bumps up to 1.25% cash back when you pay your bill on time for that month.
There is $0 annual fee plus $0 foreign transaction fee, which makes the card perfect when you study abroad for a semester or travel abroad for the summer and winter. For international students, it’s nice to use this card when you travel home for the holidays.
I studied abroad in Beijing, China for six months during my junior year and this credit card would have been a perfect companion.
You can also get access to Capital One’s Credit Wise app for fraud protection and credit monitoring, plus be covered by zero liability in the case of theft.
How To Apply For A Student Credit Card
Applying for a student credit card is pretty straight forward. The easiest way is to do research online, like you’re doing now, and apply from a reputable site like Financial Samurai.
Financial Samurai has been around since 2009 and is the #1 independently owned personal finance site on the web. I write all the content from scratch and firsthand experience. Further, the site has been featured in almost every major publication today.
With over 1.5 million organic visitors a month, Financial Samurai is a trusted resource for everything personal finance related. We believe in achieving financial freedom sooner, rather than later.
Get One Of The Best Credit Cards For College Students Today
If one of the best credit cards for college students I’ve profiled above after dozens of hours of research and analysis does not interest you, make sure you get a card with:
- No annual fee. Annual fees are a waste of money if you don’t use your card often enough to get the rewards. As a student, I trust you aren’t spending thousands of dollars each month on your card.
- Make sure the credit card has rewards. Either get a card with a great cash back reward, or rewards that match what you care about most e.g. travel rewards, gas rewards, electronic rewards.
- A great reputation. The largest banks like Chase and a financial institution like Capital One have been around for decades and have the best reputations.
- Always pay on time. To build your credit, you must have a credit card and always pay on time. Your ultimate goal should be to get over a 700 credit score by the time you graduate college, and a 800 credit score by the time you are looking to buy a house in order to get the lowest rates possible.
- Spend within your means. The key to building wealth is to spend less than you earn and invest the difference prudently for a very long time. The people who get in trouble end up owing revolving credit card get they can’t get out of. Stay disciplined!
Check out some of the best rewards credit cards today.
Learn More About Personal Finance
It’s unfortunate that personal finance isn’t a required course in high school or college. Knowledge of personal finance topics is beneficial for your entire life.
I encourage you to develop an interest in personal finance topics early on. You’re never too young to start saving and investing for your future. In fact, your future self will thank you immensely if you start building good financial habits now.
I encourage you to sign up for free wealth management tools to start. Then, be sure to check out all of my Top Financial Products recommendations. And take a browse through the archives on Financial Samurai. My goal is to help you achieve financial independence sooner, rather than later.
Pay Off Your Debt Faster
If you don’t have enough cash, getting a personal loan from Credible is a good place to start.
Personal loan rates have come down significantly in comparison to the average credit card interest rate. Thus, if you have expensive credit card debt, consider consolidating your debt into a lower interest-rate personal loan.
Credible has the most comprehensive marketplace for personal loans. Up to 11 lenders compete for your business to get you the best rate. Get real personal loan quotes in just two minutes after you fill out an application. Check out Credible today and see how much you could save.
For further suggestions on saving money and growing wealth, check out my Top Financial Products page.
In addition, if you enjoyed this article and want to get more personal finance insights and tips, please sign up for the free Financial Samurai newsletter. You’ll get access to exclusive content only available to subscribers.
About the Author: Sam worked in investment banking for 13 years at GS and CS. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income. He spends most of his time playing tennis, softball, traveling, and taking care of his family.