Best Credit Cards for College Students

Starting college is exciting. It also comes with a crash course in money management and eventually, credit cards.¹ Whether you're ready for your first credit card or still just browsing, we’ll walk you through how credit cards work, how to choose the right one for you, and how to start building credit while you’re still in school.

What Is a Student Credit Card?

If you’re in college, you might be thinking about getting a credit card. After all, college is a time many students take on new financial responsibility. Let’s discuss why college students might benefit from having a credit card:

• A student credit card is a beginner-friendly credit card designed specifically for college students. It typically has lower credit limits and fewer rewards than standard cards, but it’s easier to qualify for — even with little or no credit history.
• It helps students build a credit history early. Responsible use of a student credit card — like paying on time and keeping balances low — can lay the foundation for strong credit, which is essential for future financial milestones like renting an apartment or buying a car.
• Student credit cards often include educational tools and perks. Many issuers offer features like credit score tracking, cash back on everyday purchases, and even incentives for good grades, making them a practical learning tool for financial responsibility.

Why Should College Students Get a Credit Card?

Starting to build credit in college can set you up for financial independence after graduation. Here are three reasons why it might be a smart move:

• Credit cards can help you establish a credit history earlier. A student credit card helps you begin building a credit profile, which is essential for future financial steps like renting an apartment or applying for a car loan.
• Responsible credit use can boost your credit score. If you remember just one thing from this article: Pay your credit card debt on time, every time. Making small purchases and paying them off consistently shows lenders that you’re responsible, which can improve your credit score over time.
• Real world, here you come: Learning to manage a credit card while in school gives you hands-on experience with budgeting, interest rates, and responsible borrowing.

How Can You Choose the Best Student Credit Card?

Picking up and applying for a student credit card is about more than just getting approved — it’s about setting yourself up for financial success. Here are three smart tips to help you choose wisely:

• Look for No Annual Fees and Low Interest Rates. Many student cards offer no annual fee² and competitive APRs (that’s Annual Percentage Rate and it’s important: The higher the APR, the more money you end up spending.) You want no annual fee and the lowest rate you can get. This helps you avoid unnecessary costs while you’re still learning to manage credit responsibly.
• Prioritize Cards That Reward Good Habits. Some rewards credit cards offer perks like cash back for good grades or on-time payments. These incentives can encourage responsible use while helping you build credit.
• Avoid Cards That Make Overspending Easy. Choose a card with a low credit limit (for your own good). Also make sure the terms are clear. You want to understand what you’re getting into.

All in all, do your research. If you're comparing credit card options, you might want to look beyond big banks. Credit unions often offer more consumer-friendly terms — especially for students and first-time cardholders.

Take Charge of Your Financial Success

Whether you’re buying textbooks, covering lunch with friends, or building a foundation for your financial success, a credit card designed for students can be a smart tool when used wisely. Follow these practical steps to help you stay on track:

• Avoid overspending. Make sure you can pay off your balance in full each month. Investopedia recommends you keep your credit usage at 30% of your spending limit for the best results on your credit score.³
• Use Your Card for Planned Essentials Only. Limit credit card use to predictable, budgeted expenses like gas or your phone bill. Avoid impulse purchases that can quickly add up and derail your financial goals.
• Have a Debt Payoff Plan in Case You Slip Up. If you carry a balance, prioritize paying off the card with the highest interest rate first. Bankrate recommends paying more than the minimum payment required and setting a personal deadline to become debt-free.⁴

Ready to Get Started?

At UFCU, we’re here to help college students build healthy financial habits. Have questions? Set an appointment or check out our other free events and resources. Compare UFCU credit cards and check out our credit card rates. When you’re ready, apply for a UFCU Credit Card.

Credit Cards and College Students FAQs

What’s the best first credit card for a college student?
Look for a student credit card with no annual fee, low interest rates, and perks for responsible use — like rewards for on-time payments.

Will applying for a credit card hurt my credit score?
A credit inquiry may cause a small, temporary dip in your score, but responsible use can help build your credit over time.

Should I get a credit card or debit card in college?
Debit cards help you spend only what you have, while credit cards help build credit — if used wisely. Many students benefit from having both.

Can I get a credit card with no credit history?
Yes! Student and college credit cards are designed for beginners and often don’t require a credit history to qualify.

What happens if I miss a payment?
Missing a payment can hurt your credit score and lead to late fees. Set up autopay or reminders to stay on track.