Best Credit Cards for Students of September 2023

The best student credit cards fit your unique financial needs while helping you build a strong credit history. By the time you leave school, you could have the kind of credit that unlocks low rates on loans and your pick of the best credit cards.

The best student credit cards share a lot of the same benefits. When comparing credit cards, look for some of these stand-out features:

• No annual fee: Some cards charge an annual fee just to keep your account open. While an annual fee is worth it for some cards, it's better to go with a no annual fee credit card when starting out. This not only saves you money now, but it'll allow you to keep your card open indefinitely, even after you move on to a better rewards credit card.
• Account activity reported to the credit bureaus: To build credit, you need your credit card's payment activity reported to the three major credit bureaus. Most student cards should do this automatically.
• A good grace period: The grace period on a credit card is the amount of time you have to pay your balance before you're charged interest. Most student cards should offer a grace period of at least 21 days past the end of your statement period. Check a card's terms and conditions to see if it offers an interest-free grace period.
• Credit score tracking: Building credit is a lot easier when you can see your progress. Many of the best student credit cards offer free monthly credit scores and score tracking.
• Rewards: A good rewards card is an excellent way to save on purchases. The best student credit cards will offer points or cash back rewards on everyday purchases like dining and gas. Rewards can typically be redeemed for statement credit or a gift card.
• APR offers: Many credit cards come with 0% intro APR offers that provide a 0% interest rate during the promotional period. If your student income is based on quarterly grants or biannual scholarships, an APR offer that lets you avoid interest for a few months could be useful. Just remember to make at least your minimum payment every month so you don't get charged late fees.
• Foreign transaction fees: If you're going to study abroad -- or just take a vacation -- you may want a card that won't charge you a foreign transaction fee. Cards with foreign transaction fees charge extra fees on purchases in a foreign currency. This can get expensive over a semester abroad.

If you're still on the fence between two cards, consider extras like customer service and bonuses for good grades. You may also be interested in a student credit card with a good mobile banking app if you want to check balances and make payments on the go.

A student credit card is a card intended for college students. Student cards have lower income and credit history requirements than most other credit cards.

They can also offer benefits specifically tailored for students, such as bonus rewards for maintaining good grades. Plus, many of the best student cards offer purchase rewards, such as cash back or travel rewards. Some may even come with a small welcome bonus.

Student cards are unsecured credit cards. This means you won't need to make any kind of deposit to open a student credit card account. (In contrast, a secured credit card will require a deposit to secure your credit line.) While a secured card is a good tool for building credit, this gives student cards the edge when considering student vs. secured credit cards.

One thing to note is that student cards often lack the ability for non-purchase transactions like a balance transfer or cash advance. Consider this a good thing: It'll help you avoid getting into trouble before you even get the hang of using credit. A college student credit card is just as much a learning tool as it is a payment device.

Getting approved for a student credit card

Unlike a regular credit card, you can typically get approved for a student credit card with no credit history. Card issuers understand that student cards are often people's first credit cards.

While you do need income to qualify for any type of credit card, including a student card, this can include income from a job, as well as money from grants and scholarships. For someone looking to get a student credit card with no income at all, you may need a secured card or to find a card that allows cosigners.

A student credit card allows you to borrow money from a line of credit to make a purchase, then pay back what you borrowed later. Your card will have a credit limit, which is the most that the bank will let you borrow at any one time.

For example, imagine you have a student credit card with a $500 credit limit. You spend $100 on textbooks, and $50 on other school supplies. That leaves you with $350 of available credit.

After that month's billing cycle ends, the card company will issue your monthly statement. This will show all of the purchases you made during the last statement cycle, as well as your ending balance. It will also include your minimum required payment and your bill's due date.

Making payments on your card

The minimum required payment on your bill is the minimum amount you need to pay to the credit card company to avoid late fees. It's typically a small percentage of your balance (2% to 3%) or a flat fee (usually $25 or $35), whichever is higher. As long as you make at least the minimum payment, your account will remain in good standing.

While the minimum payment is all that's required, you should aim to pay your bill in full each month. You'll be charged interest on your balance if you don't pay it in full.

Interest fees are based on your credit card's APR, which you can find in your card's terms and conditions. To avoid being charged interest fees, be sure to pay your entire statement balance before your due date.

LEARN MORE: How a credit card works

The whole point of getting a student credit card is to start building credit and increase your credit score. So, you'll want to make sure you're using your student card responsibly. Here are a few tips for making the most of your student credit card:

• Pay on time -- every time. The number one thing with any credit product is to make sure you pay your bill on time every month. Your payment history is a big part of your credit scores. In fact, it's worth 35% of your FICO® Score. Ideally, pay your credit card balance in full every month to avoid interest. At the very least, make your minimum payment before your due date to keep your account in good standing. Missing payments is the fastest path to bad credit.
• Stay on top of your purchases. The downside to credit cards is that it can be all too easy to overspend and wind up with credit card debt if you're not careful. To stay out of trouble, treat your credit card like it's a debit card. Only make purchases you know you can pay off right away. Your card issuer's mobile app is a great way to keep track of your purchases and to check your balance from anywhere.
• Track your credit. It's easier than ever to keep tabs on your growing credit scores, and it's a good habit to get into. Most credit cards will offer a free monthly credit score. You should also check your credit reports at least once a year. You can get a free credit report annually from each credit bureau.
• Take your time. Building great credit takes years of slow progress. Don't expect to have all-star credit right away. And don't apply for multiple cards hoping to game the system. Use one or two student cards responsibly while in college, and you should graduate with good credit.

Once you graduate, your credit will likely help you get a bigger and better rewards credit card. But that doesn't mean you should cancel your student card.

The longer you let your first credit card age, the more it will help your credit. That's because the length of your credit history is a part of your credit score -- 15% of your FICO® Score -- and a longer credit history will help your score continue to grow.