As a student, you may be thinking of ways to build your credit history while still in school. Credit cards can be an excellent tool for this purpose. However, with no credit history, it can be challenging to get approved for a credit card. But don’t worry, in this article, we’ll be discussing the top credit cards for students with no credit history.
Understanding Credit History and Credit Score
Before diving into the list of top credit cards for students with no credit history, let’s first understand what credit history and credit score are.
What is Credit History?
Your credit history is a record of your borrowing and repayment activities. It includes information about your credit accounts, loans, and payments. Lenders use this information to assess your creditworthiness, which determines whether they will approve your credit application.
What is a Credit Score?
A credit score is a three-digit number that summarizes your creditworthiness. It ranges from 300 to 850, and the higher the score, the better your creditworthiness. Lenders use your credit score to determine your credit risk and the interest rate they will charge you.
Top Credit Cards for Students with No Credit History
Now that we understand credit history and credit score let’s look at the top credit cards for students with no credit history.
1. Discover it® Student Cash Back
The Discover it® Student Cash Back is an excellent credit card for students with no credit history. It offers cashback rewards on every purchase, which is a great way to earn rewards while building credit. The card also has no annual fee, and you can earn a $20 statement credit each school year that your GPA is 3.0 or higher for up to five years.
2. Journey® Student Rewards from Capital One®
The Journey® Student Rewards from Capital One® is another great option for students with no credit history. It offers cashback rewards on every purchase, and if you pay your bill on time, you can get a higher cashback rate. The card also has no annual fee and comes with features such as fraud coverage, auto rental insurance, and 24-hour customer service.
3. Bank of America® Cash Rewards Credit Card for Students
The Bank of America® Cash Rewards Credit Card for Students is a great option for students who want to earn cashback rewards while building credit. It offers 3% cashback in a category of your choice, such as gas, online shopping, dining, travel, drugstores, or home improvement/furnishings. The card also has no annual fee and comes with features such as overdraft protection, mobile banking, and account alerts.
4. Petal® 1 “No Annual Fee” Visa® Credit Card
The Petal® 1 “No Annual Fee” Visa® Credit Card is a great option for students with no credit history. It offers cashback rewards on every purchase, and the card issuer doesn’t rely solely on credit scores to determine eligibility. Instead, it considers other factors such as income, savings, and spending habits.
5. Citi® Secured Mastercard®
The Citi® Secured Mastercard® is an excellent option for students with no credit history who may not qualify for an unsecured credit card. It requires a security deposit, which becomes your credit limit, and offers features such as fraud protection and zero liability for unauthorized purchases. The card also reports to all three major credit bureaus, helping you build credit history.
The top credit cards for students with no credit history offer a variety of options for earning rewards, building credit, and enjoying additional benefits. Whether you’re looking for a card with cashback rewards, no annual fee, or a secured credit card option, there are plenty of options available to help you establish a solid credit history while still in school. Be sure to compare the features and benefits of each card to find the one that best fits your needs and financial situation.