Most students lack proper financial education. Thus, they tend to make poor financial decisions that might impact their whole lifetime. Most don’t take the necessary steps to build credit before turning 18 and get to college without a credit history. It is, therefore, welcome news to realize there are several credit cards for students with no credit history you can use to help build credit.
Best Credit Cards For Students With No Credit History
Are you an immigrant or a permanent resident looking for the best credit cards for students with no credit history? You are better off opting for the Deserve Edu MasterCard for Students. It does not require you to have a Social Security Number to apply, making it one of the easiest credit cards to get approved for. You only need a student visa, passport ID, I-20 form, and a US bank account to transfer money from checking account to prepaid card online for transactions involving the credit card use.
Coming with a credit limit of up to $5000, Deserve Edu is the only credit card for students that provides for a one-year complimentary Amazon Prime subscription worth $59. It also offers unlimited 1% money back on all purchases you make using the credit card.
- Fees – does not charge any fees, be it cash advance, balance, foreign transaction, and annual fees.
- Introductory APR – None.
- Sign up bonus – no signup bonus, even though you can consult for a limited promotional gift.
- Redeeming Rewards – you can redeem cash back on credit for Amazon purchases, direct deposits, statement credits, merchandise, gifts, and any other offers. The value of each redeeming reward varies from store to store.
- Earning Rewards – unlimited 1% cashback on any purchase.
- Minimum credit requirement – normal
- Additional benefits – this card comes with a range of other features like cell phone insurance of up to $600, extended warranties of up to 2 years on selected products you purchase using the card, and a firm price protection policy.
- Con – Does not provide for advance cash, which can make it unreliable in case of emergency.
Having a low credit history means that you can do with a low-fee student credit card, with the right amount of credit and rewards. That is what you get when you opt for the Journey Student Rewards from Capital One. It provides for 1% money back guarantee on all purchases and 0.25% cashback every time you make payments on time. You can opt to redeem your rewards anytime, either as a check or a statement credit. You can also use auto redeeming at a particular set fee on a pre determined date.
- Fees – does not charge any annual fees or foreign transaction fees.
- Bonus – does not provide for early spend bonus
- Earning rewards – unlimited 1% money back on all purchases of eligible goods.
- Redeeming rewards – 25% money-back guarantee when you make payments on time.
- Introductory APR – None.
- Additional benefits – this credit card allows for an increase in credit line after five months of continued payments, set a comfortable monthly due date, and you won’t incur any liability in case of a lost or stolen card.
Citi Rewards + Student Card is the best option for students with no credit history who spends a lot on gas and groceries as it provides for double Thank You points at supermarkets and gas stations. Shopping for other products should also be fun given the credit card allows for points rounded to the nearest 10 in any product purchase.
- Fees – Does not charge any foreign transactional and annual fees.
- Bonus – earn 2,500 points when you $500 in the first three months upon opening the account.
- Earning rewards – Earn 2x points on gas stations and selected supermarket groceries expenditure of up to $6,000. Earn 1x points on any other purchase, and when you are past the cap. Round points to the nearest 10 and boosts the first 100,000-point redemptions by 10%.
- Redemption rewards – a range of gift cards to use in different stores and restaurants, use the point to shop online, or opt for travel rewards. Receive 10% points back for the first 100,000 points you redeem in a year.
- Introductory APR – 0% introductory APR for the first seven months after account opening. After which you will incur 16.74% – 26.74% depending on your creditworthiness.
- Additional benefits – Citi comes with a lot of other benefits like full-time customer service, you can pay using a contactless chip on the credit card, and it incorporates digital wallets for easy control using apps and secure online transactions.
Discover it; Student Cash Back is a credit card that motivates you to work hard both in and out of class. It provides for $20 statement credit for keeping a 3.0 or higher GPA in a school year for five years. It also matches all the cash you earn in your first year. It comes with 5% cashback in different functional categories separated into various quarters.
- Fees – Charges no annual fee or foreign transaction fees.
- Bonus – Does not include a bonus on spending habits.
- Earning rewards – Earn 5% cashback on different stores, gas stations, restaurants, and online stores depending on the quarter you activate. Automatically receive 1% money back on any other purchases.
- Redemption rewards – Redeem your points at for cash at any time and any amount. You can also opt to use the points instantly at Amazon.com checkout.
- Introductory APR – Comes with 0% for the first six months, and 15.24% – 24.24% regular APR.
- Additional benefits – secure as you can activate alerts in case of any transactions, and you can also freeze the account anytime through a mobile app or the website. Late payments do not cause extra APR and fees charges, and you can get your Credit Scorecard for free using the FICO score account.
Bank of America allows you to apply for credit cards for no credit no deposit and will enable you to prioritize your money back reward options based on your preference. You can choose to have a 3% money-back any category such as online shopping, drug stores, travel, and gas. 2% money-back options for wholesale clubs and grocery stores and 1% for any other purchases. You can easily change your preferences monthly using the Bank of America mobile app.
- Fees – Enjoy zero annual fees using this credit card
- Bonus – earn $200 online cash rewards when you spend $1000 in the first 90 days after account opening. There is also a provision for preferred rewards where you earn 25% – 75% bonus on every purchase.
- Earning rewards – Earn 3%, 2% and 1% cashback on the different products depending on your choices.
- Redemption rewards – Redeem the cash rewards at any amount to an account of choice, either a checking or savings account. You can also set an automatic redemption cash amount to the qualifying account of choice.
- Introductory APR – charges 0% APR for the first 12 billing cycles, after which a 16.24% – 26.24% standard APR charge applies.
- Additional benefits – this credit card comes with several other benefits like travel reimbursements in case of trip cancellations. It has high-end security features like chip cards and $0 liability in case of loss or theft of the card. It provides for overdraft protection and an option of paperless statements for enhanced security. You can include your credit card details on a digital wallet for secure online transactions, and enable alerts for any transaction.
5 Tips To Build Your Credit History Fast When Using Credit Cards For Students With No Credit History
In as much as you can get a credit card for students with no credit history, it is quite limiting. You can take these steps to help you build your credit history fast;
1. Get a job
You need to prove your ability to make repayments before you get approved for a credit card. That is why you need to get a job for a stable income stream. You should also keep a clean criminal record and credit background for easy job appointments.
2. Make payments on time
Your credit history depends on the time you make payments. You should make payments before or on the due date, and don’t fail to pay the fees altogether, for good credit history and score.
Repairing a bad credit history due to missed payments is a hard task you should avoid. You can opt for alerts or note down dates on the calendar to help you keep track of the due dates.
3. Automate payments
Connect your checking or savings accounts to a debtor such that it pays automatically for secure payments. You can also set up deductions from credit cards. This helps to keep your payments updated at all time.
Ensure you take timely reviews on your bank statement to monitor the automatic payments, and to help you pay only for what you can afford.
4. Avoid a lot of credit card accounts and loans
Having a few credit and loans to service at a go helps you build a solid credit base. It is also essential in helping you take up only loans you are comfortable servicing.
5. Apply for an Increase in credit limit
Apply for a credit limit review with the existing cards instead of asking for new credit cards. You should consider this when your usage is lower than the current credit limit. It will come in handy on future occasions when you need more money.
Getting the best credit card for students with no credit history is a sure way to ensure financial sanity during your college days. Take your time to compare these options and select the one that fits your needs. In the meantime, keep growing your credit base.