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Why Do Banks Want College Students To Have Credit Card

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 5 minute read

There is no difference between the best student credit cards and the best credit cards overall. They cater to college students by offering minimal fees, competitive APRs, and useful bonuses. Even better, some provide cash back on everyday expenditures like petrol, grocery, and restaurants.

So it shouldn’t be shocking to learn that locating them is simple. Keep reading to find out why these are our top selections!

2022’s Best Credit Cards for College Students

Here are this year’s top picks for students looking for a credit card. Each card excels in one area, be it providing excessive rewards on ordinary purchases or offering above-average credit limits. In our opinion, our top selection is the finest value among all cards available.

Best Overall: Petal® 2 “Cash Back, No Fees” Visa® Credit Card

The “Cash Back, No Fees” Petal® 2. When compared to other student credit cards, Visa® Credit Card stands out for a number of reasons. But it has several advantages that make it a great pick for students and new grads:

  • This card may be applied for without a credit score; candidates without FICO scores are evaluated based on non-credit considerations, such as income.
  • Petal communicates with the three largest consumer credit bureaus.
  • After three months, you may earn up to 1.5% cash back on qualified purchases.
  • You may earn up to 10% cash back on chosen merchant transactions.
  • No yearly or international transaction costs
  • Credit limits between $300 and $10,000

EDU Student Credit Card is the best option for value-added benefits.

There is no annual charge for the Deserve EDU Student Credit Card, and cardholders may receive 1% cash back on all transactions, forever. But what makes it stand out is the long list of extra features it offers:

  • A $69 value, FREE one-year Amazon Prime membership for new cards who make at least $500 in purchases within the first three billing cycles.
  • Free mobile coverage, minus deductible and subject to coverage restrictions.
  • Additional Mastercard-backed advantages

Capital One SavorOne Student Cash Rewards Credit Card is the best cash-back student card.

With a flat 3% cash back on all transactions forever and an additional 8% cash back on Vivid Seats and Capital One Entertainment purchases, the Capital One SavorOne Student Cash Rewards Credit Card is the finest cash-back credit card for students. To explain how the bonus system functions:

  • Indulge in your favorite restaurants, movies, and TV shows, as well as your favorite streaming services, and grocery stores without restriction, all while earning 3% cash back (excluding purchases at Target and Walmart)
  • You’ll get 1% back on most purchases, but 8% back on Vivid Seats and Capital One Entertainment purchases and 5% back on qualified hotel and rental car bookings made via Capital One Travel.

Capital One Quicksilver Student Cash Rewards Credit Card is the best option for increasing your spending limit.

In the same vein as its sibling product, the SavorOne Student Cash Rewards Credit Card from Capital One, the Quicksilver Student Cash Rewards Credit Card from Capital One can earn you an increased credit limit after as little as six months of responsible use.

This card has a flat, unrestricted cash-back rate of 1.5%, making it one of the finest student credit cards for fast raising the credit limit.

Jasper Mastercard is the best option for applicants with fair credit.

The Jasper Mastercard is another excellent option for establishing credit, and while it isn’t designed with kids in mind, it’s perfect for students of any age.

It’s the ideal option for would-be cardholders with fair credit because it doesn’t demand a credit history from applicants who don’t already have one and has lax screening standards for those with fair credit. Features beyond the basic:

  • Accounts in good standing will be rewarded with a statement credit after only three consecutive on-time payments.
  • You may get up to 6% cash back just by introducing your friends (terms apply)
  • There is not a yearly subscription
  • You can get a credit line of up to $5,000 with no down payment.
  • Use this premium Mastercard’s benefits without worrying about being approved.

Indigo® Platinum Mastercard is the best option for credit repair.

For students and recent grads looking to rebuild their credit, the Indigo® Platinum Mastercard® is a terrific option. Indigo Platinum stands apart in the realm of establishing credit due to the lack of a necessary security deposit and the streamlined application process.

The Indigo Platinum Mastercard, like several similar cards, may assess an annual fee based on your credit history. Features beyond the basic:

  • The yearly price ranges from $0 to $99, according to your creditworthiness and other criteria (see terms & conditions for more information).
  • Rapid prequalification with no effect on credit score
  • No charge for card design

Indigo® Unsecured Mastercard® is the best unsecured card for students with bad credit.

Are you concerned that your credit score could prevent you from being approved for an Indigo Platinum Mastercard? To my knowledge, that is not an issue at all. Consider applying for an Indigo® Unsecured Mastercard® instead.

This first unsecured credit card was made with those with poor credit in mind, and that includes students who are just starting out. There is no required security deposit, but a yearly charge (up to $99, based on creditworthiness) is assessed. That’s a major perk compared to other secured credit cards out now. Features beyond the basic:

  • The annual charge ranges from $0 to $99, based on your creditworthiness and other variables; please refer to the terms and conditions for a complete list of card fees.
  • Indigo automatically notifies the three major consumer credit reporting agencies of your account history.

Citi® Secured Mastercard® is the best secured student card.

The Citi Secured Mastercard is an excellent option for students because of the many perks it offers.

In order to activate your card, you must first submit a deposit of at least $200 and no more than $2,500, depending on your creditworthiness. Your credit limit is equal to the amount of the deposit, and it cannot be used as payment.

After 18 months of on-time payments, you may be eligible to have your security deposit refunded and have your card converted to a “regular” credit card with no additional restrictions.

What Is the Purpose of a Student Credit Card?

The majority of students in higher education have minimal experience with credit cards and other types of credit. Since this is the case, their credit records are typically scant or nonexistent. Since this is the case, establishing a good credit history should be the primary motivation for students to apply for credit cards.

Finding a credit card that reports on-time payments to at least one but preferably all three consumer credit reporting bureaus is essential if you want to develop credit rapidly. Pay your bills on time and in full to keep up your half of the contract.

How Do You Get a Student Credit Card?

All the platitudes about hungry students have been spoken before. Even if you’re not actually skipping meals while juggling school work and a job, you definitely don’t have as much spending money as you’d like.

But don’t panic; student credit cards have low income requirements. It is not necessary to have credit history to qualify for many student credit cards. If you are a U.S.-based student who is on schedule to graduate, you should be able to apply for a student ID card.

Whether that’s the case, see if a parent or older sibling will cosign for you. That way, if you stop making payments, the credit card company still has some financial leverage.

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