When it comes to credit cards for students, factors like bad credit scores and high debt can make it difficult for students to qualify for credit cards. But there still are some credit card options that students with bad credit history can rely upon and today we are going to help you cover these essential loaning tools.
Before getting into detail about the best credit cards for students with bad credit, let’s understand the major difference between a student credit card and all other types of credit cards.
How Is A Student Credit Card Different Than All Other Types Of Credit Cards?
Students being less financially independent often find it difficult to get credit card approvals. However, they are eligible for credit cards with low credit limits than all other types of credit cards. These credit cards also come with less stringent requirements because most students don’t have bad credit histories.
Here are some of the major differences between student credits cards and the regular ones:
- Student cards are less secure than the regular ones and they do not require an initial deposit.
- Student cards come with lenient requirements considering the income of students.
- The major difference between student credits cards and the regular ones is, the prior ones are made available for students only.
- The interest rates for student credit cards are relatively higher as they are made available for people who don’t provide any credit history.
- One of the major plus points about the student cards is, they do not charge an annual fee.
Building student credit cards are quite similar to other major credit cards; this is the reason why you the student cardholders need to pay all their bills in a timely manner. Failing to cope with your credit card bills may land you in heavy debt.
What Are Some Best Credit Cards For Students With Bad Credit In 2022?
Here we have pieced together all the leading students’ cards alongside all their essential details to help you make a wise decision.
Number One: The Journey Student Credit Card From Capital One
The Journey Student Credit Card From Capital One has made it to the top of our best student cards list based on its following features:
- This popular student card provides unlimited 1% cashback on every single purchase. It also adds 1.25% of total cashback upon making timely payments.
- You don’t have to pay an annual fee.
- You can access a higher credit limit after six months followed by a minimum of 5 on-time payments. This will help you build your credit card thus lowering the credit card utilization ratio.
Besides the above benefits, it also provides several other benefits including access to Capital One CreditWise that will help you keep an eye on your overall credit score and profile. However, failing to cope with the billing cycle might create trouble for one.
Although the Journey Student Card is one of the best credit cards, you may not be able to qualify for it if your monthly income is lower than your loan or mortgage payments. You have to have $800 after paying for all your debts to be able to qualify for the card.
Another drawback you must consider is, the Journey Student Credit Card comes with a 26.99% APR on all your transfers and purchases, so if you fail to pay bills timely, you may end up in heavy debts.
Number Two: The Deserve EDU Mastercard
Among the best student credit cards, Deserve EDU Mastercard is the best fit for international students especially. You are not required to have any sort of credit history to be eligible for this card. Another positive point about this card is, it doesn’t ask for a Social Security number thus becomes the best fit for international students.
It also provides some additional benefits to international students that include ID theft protection and surprisingly doesn’t charge any international transaction fees.
Besides this, the Deserve EDU Mastercard holders will be eligible to get 1% cashback on all eligible purchases. It isn’t it; it also gives you free Amazon Prime Credit worth $49 for a year. You also don’t have to pay an annual fee.
However, qualifying for the card is a bit difficult as applicants have to provide enrollment verifications. Also, if you are planning to use this credit card for balance transfers and advance cash, you are considering the wrong option as the Deserve EDU Mastercard doesn’t offer these benefits. Also, you will be bound to pay an 18.74% variable APR for your purchases.
Number Three: The Premier Bank Card – Grey Credit Card
Students who don’t have a good credit history can think about this option as it is the best option for people with bad credit. The best part about this credit card is, you don’t need to wait for days to know whether or not you have qualified for the card. It takes a few minutes for you to fill out the online application form and takes seconds to find out if you have qualified for it.
This is the best spot for students having bad credit as it approves the applications that other credit cards don’t.
However, make sure that you are paying all your bills on time and keeping your balance low to build your credit well.
Number Four: The Surge Mastercard
The Surge Mastercard has got the fourth spot in the list of our best student credit cards. Once qualified, it enables you to have access to a $1,000 credit limit that can be doubled in just six months if the payments are made timely.
You can start off with $300 – $1,000, which is not a bad deal. The card however charges a variable interest rate of 24.99% to 29.99%.
The application process is quite simple and quick. Also, you will get instant results for your applications.
Number Five: Discover It – Student Cash Back
The reason why the Discover It Student Cash Back card made it to the list of our best student credit cards is, it offers 5% cash on purchases up to $1,500 in the qualifying category purchases for every activated quarter. While the cashback percentage for all other purchases remains 1%.
It also provides the cardholder an annual cashback bonus of $20 if their GPA remains 3.0 or more each year. You also will never be asked to pay any annual fees.
Nonetheless, you will be required to practice all the good credit card habits in order to be able to build or rebuild your credit.
Related: Best Travel Credit Cards For a Pandemic Free 2022
The Takeaway
Whether you have a bad credit history or aren’t having a social security number, you still have plenty of student credit card options to choose from. But it is crucial to use each of the credit cards responsibly so that you don’t stick to bad credits throughout your life.
