What makes a student credit card different from other cards?
Every academic year, there may be college students who arrive on campus without much in the way of credit history. This is normal, but presents lenders with unknowns when evaluating a student’s creditworthiness for a credit card. This is where student credit cards may come in, as a helpful tool for people new to credit. Having a favorable credit report and a good credit score could have a major positive impact on your financial life.
What are the requirements for obtaining a student credit card?
Student credit cards are usually unsecured cards with a lower barrier to entry compared to typical credit cards. That means unlike secured credit cards, they are issued without the applicant having to put down a cash deposit as collateral. They work much like regular credit cards—and for people with a limited credit history they may offer a pathway to building and demonstrating responsible spending and borrowing habits.
The basic requirements for obtaining a student credit card are as follows:
- The credit card applicant must be at least 18 years of age.
- Applicants under the age of 21 have to present proof of independent income or apply with a co-signer (if permitted)—usually a parent, guardian or working spouse—who is able to demonstrate proof of income on the application.
- Many student credit cards come with an explicit requirement of showing a student ID or other proof of university or community college enrollment by the primary cardmember.
Additionally, while having a track record of student loan payments can be helpful, no prior credit or payment history may be required to qualify for your first student credit card. Always check with the card issuer to understand the specific details and requirements for qualifying and receiving your first card.
How student credit cards differ from secured credit cards
A student credit card works the same way as a regular credit card, in that no deposit is required, hence the term unsecured. Chase does not offer a student credit card, but if you’re a student looking to establish credit, you may want to consider the Chase Freedom Rise® Credit Card.
Secured credit cards require a deposit and can be helpful to young people who might otherwise be unable to qualify for a student credit card. This is a category that includes many young people who are not enrolled at university, such as new military recruits and those individuals undergoing on-the-job-training in a range of industries where a college degree is not required. While Chase does not offer secured credit cards, other card issuers may.
Benefits of a student credit card
A student credit card may come with attractive features. Chase Freedom Rise offers similar benefits to what you might find with a student credit card, like:
- Cash back on purchases, including specific types of purchases that students might make, such as at grocery stores and major retailers.
- Travel rewards that may appeal to students studying abroad or making spring break plans.
- The potential at some point to upgrade the card to another Chase credit card, such as Chase Freedom Unlimited®, depending on the account status.
The bottom line
A student credit card, a secured card or another card for those new to credit may be a good way for someone without much of a credit history to build credit. Some student cards require proof of college or university enrollment, while others do not—check the card terms and conditions before applying.
If you’re a student looking to establish credit with Chase, you may want to consider applying to the Chase Freedom Rise card.
