Best College Student Credit Cards of 2018

HOW STUDENT CARDS STACK UP

Understanding student cards

Simply being enrolled as a college student isn’t enough to qualify for a student credit card. The Credit Card Act of 2009 prohibits issuers from providing cards to people under 21 unless they have proof of independent income or a co-signer — someone willing to put their good credit on the line to help you build yours. This can be a roadblock since most major credit card issuers don’t allow co-signers. You might have another path to credit if you have a parent with a good credit score who is willing to add you to their credit card account as an authorized user.

Even after you turn 21 and have a full-time income, it can still be hard to qualify for a credit card if you lack a credit history. Secured credit cards can offer a gateway to establishing credit. They are easier to qualify for because they require a security deposit, which reduces the risk for credit card issuers.

How to choose a student credit card

If you can meet the requirements to qualify for a student credit card, consider these factors in your search:

• Annual fee: When a card has no annual fee, it doesn't cost you anything to keep the account open after you move on to better offers. That can have a positive effect on the portion of your credit score tied to the length of your credit history.
• Sign-up bonus and rewards: Rewards and bonuses on student cards, when offered at all, may be smaller than on regular cards, but every little bit helps as a student.
• Reporting to all three credit bureaus: You want your good payment history to show up on credit reports produced by Experian, Equifax and TransUnion. That can happen only if your issuer reports to all three.
• Foreign transaction fees: If you plan to travel or study abroad, look for a card that doesn’t charge extra fees on purchases made abroad.
• Upgrade opportunities: Check whether the issuer allows student cardholders to upgrade to a "regular" card when ready.

For more, see our guide to choosing a student credit card

Other cards to consider

If you can’t qualify for a credit card because you lack a credit history, consider a secured credit card if you’re over 21 and have a full-time income. They are easier to qualify for because they require a security deposit. The deposit is typically equal to your credit line, and you’ll get the money back when you close the card or upgrade to a regular credit card with the same issuer.

If you’re already on the credit track and you have an independent income, you might qualify for a credit card that offers better rewards, a generous sign-up bonus or lower interest. If you’re not, these are some of the options you can look forward to as you establish good credit.