A student credit card works pretty much the way any credit card works, but with rewards and features specifically geared toward a student’s needs. Student credit cards are typically much easier to be approved for, as most students applying for their first credit card will often have limited or no credit history. These cards will also have a rewards structure that awards student-centric purchases like streaming subscriptions, dining or Amazon purchases.
Card issuers usually view students as high-risk borrowers, which often results in higher interest rates on student credit cards. As long as you make on-time payments on your credit card each month and pay off your balances in full, you should be able to avoid the added interest that comes with these higher rates completely.
While great for your time as a student, a student credit card can easily become a bit restrictive as you build up your credit history and become eligible for cards with better rewards and perks. Luckily, a lot of issuers provide card options that are easy to upgrade to once you’re no longer a student.
Once you’ve evaluated your financial situation and decided a student card is the right choice for you, it’s time to apply. Here are five steps to applying for a student credit card.
A student credit card can be a great way to start building your credit early so you’ll have an easier time accomplishing life’s biggest milestones. Paying your credit card bill on time and in full should always be your first priority. Do your research and pick a card that best fits your unique financial needs.