There are several reasons why college students look to get their first credit card. When living away from home for the first time, they may need a secure and convenient method of payment. Additionally, students need to learn how to use credit responsibly and start building a strong credit history. Credit cards can also offer students valuable rewards and benefits, but they should be extremely cautious about using their cards to finance purchases and incur debt.

To guide your search for a solid credit card that you can use responsibly, we’ve gathered the top student credit cards across categories, from earning cash back rewards to going out.

Related: Should parents co-sign on student loans?

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How We Chose the Best Student Credit Cards

To find the top student credit cards, we first divided the market into the following six categories:

1. Best student card for cash back rewards
2. Best student card for travel
3. Best student card for going out
4. Best student card for encouraging responsible use
5. Best student card for encouraging good grades
6. Best student card for benefits

We looked at over a dozen major credit card issuers and credit unions to find the top cards in each of these subcategories. We included only cards that are offered to all applicants, leaving out products offered by credit unions that not everyone can join.

And for each category, we looked at the most relevant factors. For example, the top student card for going out should earn cash back on purchases from restaurants and grocery stores, while the top student cards for benefits should offer lots of perks for cardholders. While credit card terms may change from time to time, the following rankings reflect information that was accurate in October 2021.

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1. Best Student Card for Cash Back Rewards

While earning cash back rewards shouldn’t be the main reason that students get a credit card, earning some cash from your regular spending is always welcome.

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Capital One Quicksilver Rewards for Students

To keep things simple, many credit card users prefer to earn a flat rate of cash back on all purchases, rather than keeping track of bonus rewards for specific categories of purchases (though you will still need to know how to read your credit card statement each month). To find the top flat rate cash back card, we looked at the rate of cash back offered as well as for a card that has low fees, which led us to the Capital One Quicksilver Rewards for Students.

Just like the regular version of this card, the Capital One Quicksilver Rewards for Students offers unlimited 1.5% cash back on all purchases. It comes with benefits like extended warranty coverage, a complimentary concierge and travel assistance services. And with no annual fee and no foreign transaction fees, it’s a low-cost way for students to use a cash back credit card.

Image Credit: Capital One.

Pros & Cons

Pros:

• Earn 1.5% cash back on all purchases
• No annual fee
• No foreign transaction fees
• Valuable benefits

Cons:

• No new account bonus
• Higher than average APR for purchases

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2. Bank of America Customized Cash Rewards for Students

On the other hand, some students are looking to earn cash back bonuses specifically on their common purchases. The Bank of America Customized Cash Rewards for Students card offers 3% cash back on a category that you can choose each month, and eligible categories include gas, online shopping, dining, travel, drug stores or home improvement/furnishings.

You also earn 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, and 1% cash back on all other purchases. New applicants can also earn a $200 cash rewards boost after using their card to make at least $1,000 in new purchases within 90 days of account opening.

You also receive 15 months of 0% APR financing on new purchases and balance transfers made within 60 days of account opening (if you’re unsure on any of that terminology, check out our guide on terms related to credit cards). This card also includes a free monthly FICO score, and its mobile app ties into your other Bank of America checking and savings accounts. There’s no annual fee for this card.

Image Credit: Bank of America.

Pros & Cons

Pros:

• 3% cash back on a spending category that you choose each month
• 2% cash back at grocery stores and wholesale clubs
• 15 months of 0% APR financing on new purchases and balance transfers
• No annual fee

Cons:

• Need to manually change the spending category you want to earn 3% cash back with
• Bonus cash back limited to the first $2,500 spent

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3. Best Student Card for Travel

There are many travel rewards credit cards, but few that are designed for students. The top cards will offer valuable rewards for spending, a generous new account bonus and no fees for purchases made outside of the United States.

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Bank of America Travel Rewards for Students

When looking to earn travel rewards, this card offers students several advantages. First, new account holders can earn 25,000 bonus points after spending $1,000 on new purchases within 90 days of account opening. This alone is worth $250 in statement credits towards travel and dining purchases.

Additionally, students earn 1.5 points per dollar spent on all purchases, with no limits. These points are also worth one cent each as statement credits towards travel and dining purchases. New accounts also receive 15 months of 0% APR financing on new purchases, but students should still be strongly encouraged to avoid debt.

There’s no annual fee for this card, and you’ll face no foreign transaction fees when you travel outside of the U.S.

Image Credit: Bank of America.

Pros & Cons

Pros:

• Earn points towards travel or dining purchases
• Travel rewards are easy to redeem
• New account bonus worth $250
• No annual fee or foreign transaction fees

Cons:

• Promotional financing offer could encourage debt
• Must spend $1,000 in 90 days to earn the new account bonus

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4. Best Student Card for Going Out

Let’s face it — many students spend a considerable amount of their budgets on dining, food and entertainment. So when looking for a top student card for going out, we looked for cards that rewarded students the most for those kinds of expenses.

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Capital One SavorOne Rewards for Students

This card offers 3% cash back on dining, entertainment, groceries and purchases from popular streaming services. There are no limits on the bonuses you can earn, and you’ll get 1% cash back on all other purchases. The card even offers 8% cash back on tickets at Vivid Seats when you use your Capital One SavorOne Rewards card. There’s no annual fee for this card, and no foreign transaction fees.

Image Credit: Capital One.

Pros & Cons

Pros:

• 3% cashback on dining, entertainment, groceries and purchases from popular streaming services
• 1% cash back on all other purchases
• No limits on the amount of cash back that you can earn
• No annual fee and no foreign transaction fees

Cons:

• Higher than average standard interest rate
• Large bonuses for dining and entertainment could encourage overspending and debt

Image Credit: DepositPhotos.com.

5. Best Student Card for Encouraging Responsible Use

When selecting a student credit card, many students and their parents are most concerned with encouraging responsible use. That means paying your bills on time and carrying little, if any, debt. The top credit cards for encouraging responsible use will offer incentives for paying your bills on time.

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Journey Student Credit Card from Capital One

The Journey Student credit card from Capital One offers a nominal 1% cash back on all purchases. However, when you pay your bill on-time, Capital One will increase your cash back percentage to 1.25%. It’s not that much money, but it could be enough to get students to make timely payments.

This card also includes $60 in annual credits ($5 per month) towards select entertainment streaming services, but only when your monthly payment is made on time. There’s no annual fee for this card, and no foreign transaction fees.

Image Credit: Capital One.

Pros & Cons

Pros:

• Increased rewards for on-time payments
• $5 per month credit towards entertainment streaming purchases with on-time payments
• Automatic credit line reviews in as little as six months
• No annual fee and no foreign transaction fees

Cons:

• Lower than average cash back rates, even with on-time payments
• Higher than average standard interest rate

Image Credit: DepositPhotos.com.

6. Best Student Card for Encouraging Good Grades

Managing your credit cards and personal finances is important, but getting good grades is paramount to college students. The top credit card for encouraging good grades will actually reward students based on their GPA.

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Discover it Student Chrome

Discover offers a Good Grade Reward on its student credit cards, including the Discover it Student Chrome card. Students with a Discover it Chrome card who have a GPA of 3.0 or higher (or equivalent) during a school year (September through August) may apply at Discover.com for a $20 statement credit. You can earn one Good Grade Reward per school year, per account, up to a maximum of five consecutive years from the date your account is opened.

This card also offers 2% cash back at gas stations and restaurants, on up to $1,000 in combined purchases each quarter. You also earn 1% cash back on all other purchases, and the Discover card will automatically double the amount of cash back you’ve earned during your account’s first year.

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

Image Credit: Discover card.

Pros & Cons

Pros:

• Good grade rewards encourage academic excellence
• Valuable cash back offers for gas and restaurant purchases
• Discover doubles your cash back earned in your account’s first year
• No annual fee, and no foreign transaction fees

Cons:

• Earning rewards could encourage overspending and debt
• The Discover card isn’t as widely accepted outside the United States compared to Visa and Mastercard

Image Credit: DepositPhotos.com.

Best Student Card for Benefits

Another reason for students to carry a credit card is to enjoy benefits. The top student cards for benefits will include the things that young adults value the most.

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Deserve EDU

The Deserve EDU card includes quite a few benefits that can save students money. First, cardholders will enjoy a year of Amazon Prime Student. Cardholders will also receive a cell phone protection policy, because for many students, it’s only a matter of time before their pricey smartphone becomes damaged or stolen. This card also offers 1% cash back on all purchases, with no limits. This card is also great for international students, as there’s no Social Security number necessary to apply. There’s no annual fee for this card, and no foreign transaction fees.

Image Credit: Mastercard.

Pros & Cons

Pros:

• One year of free Amazon Prime Student
• Cell phone protection plan
• 1% cash back on all purchases
• No annual fee or foreign transaction fees

Cons:

• Not affiliated with a major bank
• No welcome bonus or promotional financing offer

Image Credit: SIphotography / iStock.

Pros and Cons of Student Credit Cards

Before you apply for a student credit card, it’s important to make sure you understand the pros and cons. This will also help to ensure that if you do get one, you’ll know how to use a credit card responsibly.

Image Credit: Lantern Credit / SoFi.

Student Credit Card Alternatives

Student credit cards aren’t right for everyone, and there are some compelling alternatives.

• Get a prepaid debit card: First, you could consider a prepaid debit card. The advantages of debit cards are that it’s impossible to incur debt, as you can only spend the money that you’ve already deposited. But because you can’t use a prepaid debit card to access a line of credit, you also can’t use these as a card to build credit.
• Become an authorized user: Another alternative is to become an authorized user on another person’s card, like a parent or family member. Being an authorized user allows you to make charges to another person’s account, and the primary cardholder is always responsible for repayment. Due to this, it’s extremely important that the primary cardholder comes to an agreement with the authorized users on how to use the card. However, hopping on with someone who has a good or excellent credit score can be a good way to achieve credit score improvement for yourself.
• Consider cards not specific to students: Students with an established credit history can also consider applying for one of the many cards not specifically marketed to students. These cards can come with more generous rewards, more valuable benefits and lower interest rates. However, these cards can also have annual fees, while most student cards do not.
• Look into a secured card: Conversely, students who have already had problems with their credit might consider a secured card. Secured credit cards work much like standard, unsecured cards, but they require the payment of a refundable security deposit before the account can be opened. These cards are available to people with poor or bad credit, but with responsible use, many secured card holders are able to upgrade their card to a standard, unsecured card within a year.

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Thinking of Applying for a Credit Card?

Student credit cards can be a controversial topic, as there are too many students who fail to manage their accounts properly and graduate with debt. But when students find the right credit cards for their needs and learn to avoid debt and pay their bills on-time, the result can be a lifetime of good credit card habits. That’s why it’s important to take the time to select a credit card that’s right for you.

Learn More:

• Student loan calculator
• Why are student loan interest rates so high?

This article
originally appeared on LanternCredit.com and was
syndicated by MediaFeed.org.

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