Did you know that according to a report, 42% of college students had a credit card in their name? Entering college is a massive milestone in a young adult's life, often accompanied by newfound independence and responsibilities. One such responsibility is managing finances, and a credit card can be a crucial tool for building financial freedom and establishing a credit history. 

But before we get into the topic, it is recommended to read about the Top 19 Credit Cards to build credit in 2023 in detail by Bright Money!

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This guide aims to help students in the USA make an informed decision when selecting a credit card that suits their unique circumstances.

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What Credit Cards Should You Get as A Student in the USA?

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As a student, you can get the following Credit Cards:

Student Credit Cards:

1. Discover it® Student Cash Back
2. Capital One Journey Student Rewards
3. Bank of America® Cash Rewards Credit Card for Students
4. Wells Fargo Cash Wise Visa® Card
5. Chase Freedom® Student
6. Bank of America® Travel Rewards Credit Card for Students
7. Petal® 2 "Cash Back, No Fees" Visa® Credit Card
8. Citi Rewards+ Student Card
9. Deserve® EDU Mastercard for Students
10. Citi Custom Cash℠ Card for College Students

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Secured Credit Cards:

1. Discover it® Secured Credit Card
2. Capital One Secured Mastercard
3. Citi Secured Mastercard
4. OpenSky® Secured Visa® Credit Card
5. Discover it® Business Secured Credit Card
6. Navy Federal Credit Union nRewards® Secured Credit Card
7. Green Dot Visa® Secured Credit Card
8. First Progress Platinum Elite Mastercard® Secured Credit Card
9. Applied Bank® Secured Visa® Gold Preferred® Credit Card
10. USAA Secured Card American Express® Card

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Credit Union Cards:

1. PenFed Promise Visa® Card
2. Alliant Credit Union Visa® Platinum Rewards Card
3. Pentagon Federal Credit Union (PenFed) Platinum Rewards Visa Signature® Card
4. Golden 1 Credit Union Platinum Rewards Credit Card
5. State Employees' Credit Union (SECU) Visa Credit Card

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Student Credit Cards

To help you get started, here are some of the top student credit cards in the USA, each with its unique features and benefits:

1. Discover it® Student Cash Back

• No annual fee
• 5% cash back on rotating categories (e.g., groceries, dining, gas)
• 1% cash back on all other purchases
• Cashback match for the first year
• Good grades reward
• No foreign transaction fees

2. Capital One Journey Student Rewards

• No annual fee
• 1% cash back on all purchases
• Boost your cash back to 1.25% for the month you pay on time
• No foreign transaction fees
• Credit limit increases for responsible use

3. Bank of America® Cash Rewards Credit Card for Students

• No annual fee
• 3% cash back in any category of choice (e.g., gas, online shopping, dining)
• 2% cash back at grocery stores and in wholesale clubs
• 1% cash back on all other purchases
• Cash rewards redemption bonus

4. Wells Fargo Cash Wise Visa® Card

• No annual fee
• 1.5% cash back on all purchases
• 1.8% cash back on digital wallet purchases during the first 12 months
• Cell phone protection
• Access to budgeting tools and financial education resources

5. Chase Freedom® Student

• No annual fee
• 1% cash back on all purchases
• $50 bonus after your first purchase within three months
• Credit limit increases for responsible use

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6. Bank of America® Travel Rewards Credit Card for Students

• No annual fee
• Unlimited 1.5 points for every $1 spent on all purchases
• Points can be redeemed for travel-related expenses
• No foreign transaction fees
• $250 online bonus cash rewards for spending a certain amount in the initial months

7. Petal® 2 "Cash Back, No Fees" Visa® Credit Card

• No annual fee
• 1% cash back on all purchases, increasing to 1.25% after six on-time payments
• No security deposit required
• Petal's Cash Score evaluates your creditworthiness based on your financial history rather than just your credit score.
• No foreign transaction fees

8. Citi Rewards+ Student Card

• No annual fee
• Earn 2X ThankYou Points at supermarkets and at gas stations (up to a limit)
• Round up to the nearest 10 points for each expense
• No foreign transaction fees

9. Deserve® EDU Mastercard for Students

• No annual fee
• No Social Security Number or credit history is required for international students
• 1% cash back on all purchases
• Amazon Prime Student subscription credit (up to 12 months)
• Cell phone protection

10. Citi Custom Cash℠ Card for College Students

• No annual fee
• 5% cashback on your top eligible spending category (up to a limit) and 1% cash back on all other purchases
• No rotating categories or enrollment is required
• Access to Citi Entertainment for special access to events and tickets

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Secured Credit Cards:

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If you have difficulty qualifying for an unsecured student credit card, go for a secured one. These cards require a security deposit, which also becomes your credit limit. Responsible use can help you build credit and eventually qualify for an unsecured card.

1. Discover it® Secured Credit Card

• No annual fee
• Requires a security deposit
• 2% cash back at gas stations and restaurants (up to a limit)
• 1% cash back on all other purchases
• Cash back match for the first year

2. Capital One Secured Mastercard

• No annual fee
• Requires a security deposit
• Credit limit increases for responsible use
• Access to a higher credit line after five on-time payments

3. Citi Secured Mastercard

• No annual fee
• Requires a security deposit
• Build credit history with responsible use
• Access to higher credit limits after consistent, responsible use

4. OpenSky® Secured Visa® Credit Card

• No credit check is required for approval
• No annual fee
• Requires a security deposit
• Reports to all three major credit bureaus to help build credit

5. Discover it® Business Secured Credit Card

• Designed for small business owners, but students with a business venture may qualify
• No annual fee
• Requires a security deposit
• 1.5% cash back on all purchases
• Cash back match for the first year

6. Navy Federal Credit Union nRewards® Secured Credit Card

• No annual fee
• Requires a security deposit
• Rewards program with points for every purchase
• Access to higher credit limits with responsible use

7. Green Dot Visa® Secured Credit Card

• No annual fee
• Requires a security deposit
• Mobile app for account management
• Reports to all three major credit bureaus to help build credit

8. First Progress Platinum Elite Mastercard® Secured Credit Card

• No credit history or any minimum credit score is required
• Requires a security deposit
• Low annual fee
• Reports to all three major credit bureaus

9. Applied Bank® Secured Visa® Gold Preferred® Credit Card

• No credit history or any minimum credit score is required
• Requires a security deposit
• Low annual fee
• Reports to all three major credit bureaus

10. USAA Secured Card American Express® Card

• Designed for USAA members and military personnel
• No annual fee
• Requires a security deposit
• Competitive variable APR
• Provides military benefits and special features for USAA members

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Credit Union Cards

Credit unions often offer credit cards with favorable terms to their members. If you're eligible to join a credit union, explore their credit card options.‍

1. PenFed Promise Visa® Card

• No annual fee
• 4.99% introductory APR on balance transfers for 12 months
• No foreign transaction fees
• EMV chip technology for enhanced security
• Access to PenFed's financial resources and educational tools

2. Alliant Credit Union Visa® Platinum Rewards Card

• No annual fee
• 2X rewards points on every $1 spent on qualifying purchases
• No foreign transaction fees
• Introductory 0% APR on purchases and balance transfers
• Access to Alliant's mobile app and financial calculators

3. Pentagon Federal Credit Union (PenFed) Platinum Rewards Visa Signature® Card

• No annual fee
• 5X points on gas purchases, 3X points on supermarket purchases, and 1X point on all other purchases
• No foreign transaction fees
• Introductory APR offers on balance transfers
• Access to PenFed's member discounts and financial tools

4. Golden 1 Credit Union Platinum Rewards Credit Card

• No annual fee
• 3X points on gas, 2X points on groceries, and 1X point on all other purchases
• No balance transfer fees
• Competitive interest rates
• Access to Golden 1's online and mobile banking services

5. State Employees' Credit Union (SECU) Visa Credit Card

• No annual fee
• Fixed interest rates
• No balance transfer or cash advance fees
• Access to SECU's financial education resources
• Additional cards available for authorized users

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Conclusion

According to a report, college students' average credit card debt was approximately $2,500. Selecting the right credit card as a student in the USA is an important step toward building a solid financial foundation. It's essential to consider factors such as annual fees, interest rates, rewards, and your credit history. Responsible credit card usage is also crucial to avoiding financial trouble and building a positive credit history.

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Recommended Reads

How to check your credit score?

5 mistakes to avoid while building credit

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FAQs

1. What's the best type of credit card for students in the USA?

The best credit card for students in the USA is typically a student credit card or a secured credit card. Student credit cards are designed for students and often come with lower credit limits and student-friendly features. Secured credit cards are a good option for those with little or no credit history.

‍2. Can international students get credit cards in the USA?

Yes, international students in the USA can often get a credit card. Some banks and credit card issuers can offer credit cards specifically designed for international students. Additionally, some credit cards do not require a Social Security Number (SSN) for approval.

3. What are the key factors when choosing a student credit card?

Important factors to consider include annual fees, interest rates (APR), credit limits, rewards or cashback programs, credit score requirements, and additional cardholder benefits such as no foreign transaction fees.

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References

https://educationdata.org/how-do-people-pay-for-college

https://www.salliemae.com/content/dam/slm/writtencontent/Research/Majoring_in_Money.pdf

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