Best Credit Cards for Students with Zero Credit History
As a student, managing finances can be overwhelming. Balancing tuition fees, textbooks, and living expenses can be a heavy burden, and often, students turn to credit cards as a means of accessing instant cash or rewards. However, students with zero credit history often face difficulties in getting approved for credit cards. In this article, we will explore the best credit cards for students with no credit history, highlighting their features, benefits, and eligibility criteria.
Understanding Credit Scores
Before we dive into the best credit cards for students, let’s first understand what credit scores are and why they are essential. A credit score is a three-digit number calculated based on an individual’s credit history, which ranges from 300 to 850. It’s a measure of how well you manage your debts and credit habits.
For students with no credit history, it’s essential to understand that credit cards are a gateway to building a credit score. By making timely payments, keeping a low credit utilization ratio, and avoiding late payments, you can establish a positive credit history.
Eligibility Criteria for Credit Cards for Students
Most credit card issuers require the following eligibility criteria:
- Age: The applicant must be at least 18 years old (21 in some states).
- Income: A steady income source is required, often in the form of part-time jobs or scholarships.
- Citizenship: U.S. citizenship or permanent residency is usually required.
- Credit History: This might seem contradictory, but some credit cards require a negative credit history to get approved.
Top Credit Cards for Students with Zero Credit History
Here are some of the best credit cards for students with zero credit history, along with their features and benefits:
1. Discover it Student Chrome
- Annual Fee: $0
- Introductory Offer: 0% APR for 6 months
- Rewards: 1% cashback on all purchases
- Credit Limit: $0 to $2,500
- Interest Rate: 12.49% – 23.49% Variable APR
- Eligibility: Good grades, income, and a credit history are not required.
Discover it Student Chrome is one of the best credit cards for students with zero credit history. Its cashback rewards program offers 1% cashback on all purchases, with no rotating categories or spending limits. Additionally, students who maintain a 3.0 GPA or higher can earn an additional 1% cashback on all purchases, up to $1,000 per year.
2. Capital One Journey Student Rewards Credit Card
- Annual Fee: $0
- Introductory Offer: 0% APR for 6 months
- Rewards: 1% cash back on all purchases, plus a 25% rewards bonus for on-time payments
- Credit Limit: $0 to $1,000
- Interest Rate: 24.99% (Variable) APR
- Eligibility: No income or credit history requirements.
Capital One Journey Student Rewards Credit Card is another excellent option for students with zero credit history. Its rewards program offers 1% cashback on all purchases, plus a 25% rewards bonus for on-time payments. Additionally, students can earn an additional 0.25% cashback on all purchases by making on-time payments each month.
3. Citi ThankYou Preferred Card for College Students
- Annual Fee: $0
- Introductory Offer: ThankYou points, 3x points on dining and entertainment purchases
- Rewards: 2x points on dining and entertainment purchases, 1x point on all other purchases
- Credit Limit: $0 to $2,500
- Interest Rate: 14.99% – 24.99% Variable APR
- Eligibility: Good grades, income, and a credit history are not required.
Citi ThankYou Preferred Card for College Students is a solid option for students with zero credit history. Its rewards program offers 2x points on dining and entertainment purchases, and 1x point on all other purchases. Additionally, students can earn ThankYou points, which can be redeemed for travel, gift cards, or cashback.
4. Wells Fargo Propel American Express Card
- Annual Fee: $0
- Introductory Offer: 25,000 bonus points after spending $1,000 in the first 3 months
- Rewards: 3x points on dining, takeout, and bars; 2x points on gas stations, and 1x point on all other purchases
- Credit Limit: $0 to $2,500
- Interest Rate: 12.99% – 24.99% Variable APR
- Eligibility: Good grades, income, and a credit history are not required.
Wells Fargo Propel American Express Card is a great option for students with zero credit history. Its rewards program offers 3x points on dining, takeout, and bars; 2x points on gas stations; and 1x point on all other purchases. Additionally, students can earn 25,000 bonus points after spending $1,000 in the first 3 months.
5. Bank of America Cash Rewards credit card for students
- Annual Fee: $0
- Introductory Offer: $200 cash reward after spending $500 in the first 90 days
- Rewards: 3% cashback on gas stations, 2% cashback on groceries, and 1% cashback on all other purchases
- Credit Limit: $0 to $2,500
- Interest Rate: 13.99% – 23.99% Variable APR
- Eligibility: Good grades, income, and a credit history are not required.
Bank of America Cash Rewards credit card for students is an excellent option for students with zero credit history. Its rewards program offers 3% cashback on gas stations, 2% cashback on groceries, and 1% cashback on all other purchases. Additionally, students can earn a $200 cash reward after spending $500 in the first 90 days.
Tips for Building Credit as a Student
As a student with zero credit history, it’s essential to understand that credit cards are a gateway to building a credit score. Here are some tips to help you build credit:
- Make timely payments: Pay your credit card bills on time, every time.
- Keep a low credit utilization ratio: Keep your credit utilization ratio below 30% to avoid affecting your credit score.
- Don’t apply for too many credit cards: Applying for multiple credit cards can negatively affect your credit score.
- Monitor your credit report: Regularly check your credit report to ensure there are no errors or unexpected changes.
- Be patient: Building credit takes time, so be patient and consistent in your efforts.
Conclusion
In conclusion, having a credit history as a student can be challenging, but it’s not impossible. By choosing the right credit card, making timely payments, and keeping a low credit utilization ratio, you can establish a positive credit history. The credit cards listed above are excellent options for students with zero credit history, offering cashback rewards, low introductory APRs, and competitive interest rates.
Remember, building credit takes time and effort, but it’s a crucial step towards achieving financial stability and independence. By following these tips and choosing the right credit card, you can take the first step towards building a strong credit history.
Disclosures
This article is for informational purposes only and is not intended to be financial advice. It’s essential to understand the terms and conditions of any credit card before applying. Credit card issuers may change their terms and conditions, so it’s crucial to review the card’s details before applying.
References
- Discover it Student Chrome. (n.d.). Discover.
- Capital One Journey Student Rewards Credit Card. (n.d.). Capital One.
- Citi ThankYou Preferred Card for College Students. (n.d.). Citi.
- Wells Fargo Propel American Express Card. (n.d.). Wells Fargo.
- Bank of America Cash Rewards credit card for students. (n.d.). Bank of America.
Image Credits
- Image 1: Discover it Student Chrome. (n.d.). Discover.
- Image 2: Capital One Journey Student Rewards Credit Card. (n.d.). Capital One.
- Image 3: Citi ThankYou Preferred Card for College Students. (n.d.). Citi.
- Image 4: Wells Fargo Propel American Express Card. (n.d.). Wells Fargo.
- Image 5: Bank of America Cash Rewards credit card for students. (n.d.). Bank of America.
About the Author
[Your Name] is a financial writer with a passion for helping students manage their finances effectively. With over 5 years of experience in the finance industry, [Your Name] has a deep understanding of credit cards, loans, and other financial products. If you have any questions or concerns about credit cards or personal finance, feel free to reach out to [Your Name] at [Your Email Address].
