The Best Credit Cards for Women in College
College girls – learn from my mistakes. I started university at 17 (!) and, because my parents didn’t teach me the financial basics, I found myself with my first credit card just a few weeks into my college career… which I then maxed out on dresses at Abercrombie & Fitch within a month. I absolutely didn’t understand that I should be paying off any purchases within a month, that taking out a cash advance would skyrocket my APR or that credit cards aren’t just a “free” source for shopping.
It took me YEARS to figure out that a $49 dress ended up costing me $260 when you added up my revolving credit balance and the recurring interest every month. If you’re looking for a credit card for college women in 2024, consider yourself lucky. The laws that have been put in place since I graduated university make it safer for you to start your financial journey. Top student credit cards help establish a solid credit history, which is crucial for future endeavors like purchasing a car, owning a home, renting your first apartment and even impacting job opportunities. If you’re a business major or finance major, some jobs for college grads require a credit check!
While college credit cards are designed for newcomers to credit, college student credit cards don't guarantee approval solely based on student status. I’ve also added some alternatives, such as secured credit cards and incremental credit-building cards. Student credit cards are designed with college students in mind, offering modest credit limits and special rewards tailored to students. They're a great way to start building your credit and teach you how to spend responsibly. FYI, the Credit Card Accountability Responsibility and Disclosure Act of 2009 (also known as the CARD Act) says that if you're under 21, you'll need a co-signer or show that you have your own income to get a credit card. I know that sounds like a bummer, but that law could have saved me thousands of dollars my freshman year of college. So get the info on your part-time college job ready, and apply for one of these recommended student credit cards below.
Discover it® Student Chrome
Discover offers two excellent credit cards designed specifically for college students. The Discover it® Student Chrome card is noteworthy for its uncomplicated rewards program and bonus categories that cater to students' needs. Additionally, cardholders receive a complimentary FICO score and benefit from low fees. Notably, Discover emphasizes that there is no requirement for a FICO credit history to be eligible for this card.
Highlights:
2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter
1% cash back on all other purchases
No annual credit card fee
0% Intro APR for six months
A lot of financial advisors will be mad at me for highlighting this, but… it comes in pink.
Chase Freedom Rise℠
If you're currently a Chase banking customer, this card can be a great way to build your credit. The Chase Freedom Rise℠ doesn't need a credit history for approval and has no annual fee; this credit card provides valuable rewards on every purchase, making it an attractive option for those who want to maximize their earnings. Additionally, Chase provides the possibility of an upgrade in the future, adding extra flexibility and benefits for cardholders. The Lock & Unlock Feature can help you instantly block new purchases, cash advances and balance transfers on the Chase App. I think this is great if you’re trying to change your overspending habits; you might be traveling internationally or often lose things.
Highlights:
1.5% Cashback
No annual fee
Earn a $25 statement credit when you enroll in automatic payments within the first three months.
The Lock & Unlock Feature instantly blocks new purchases
Capital One Quicksilver Student Cash Rewards Credit Card
The Capital One Quicksilver Student Cash Rewards Credit Card is only available to students and has unlimited rewards that allow them to earn unlimited 1.5% cash back on every purchase, every day. New card members earn a one-time $50 cash bonus once they spend $100 on purchases within three months of account opening. Whether you’re at a 4-year university, community college or other higher education institution, this card might be an option for you.
Highlights:
Simple, straightforward and satisfying
1.5% cash back on all purchases
No annual fee
It can be a bit tempting to overspend with Uber and Capital One Shopping collabs
Self Secured Visa® Credit Card
If there’s one thing that’s always true around here, it’s that I’ll always keep it real. If you fell into a spending hole like I did my first semester of college, this card can help you dig out of it. It is a secured card, which means it works more like a debit card but will report to the credit agencies as a credit card. The Self Secured Visa® Credit Card allows individuals with no credit to build a credit history distinctively. Unlike standard secured cards, this card doesn't necessitate an initial security deposit or a rigorous credit check. However, it does require you to fulfill certain requirements that other secured cards do not. It's complex, but for individuals facing challenges in establishing a credit history, it can be a practical and successful option.
Highlights:
$25 annual fee
No hard credit check
It will help teach you how to be good with bill payments
Can help you build credit
The Basics of Credit for College Students
I had to learn this the hard way, so let me save you some time. Here are the most frequently asked questions from college women who want to start taking ownership of their credit and banking needs. I probably rang up $5000 worth of debt before ever looking up these terms, so do yourself a favor and learn from my mistakes!
What is a balance transfer?
A balance transfer is a transaction where debt is transferred from one account to another, such as credit cards. People usually do this to save money by making the most of certain benefits. Since Freedom Rise will probably be your initial credit card, you may not need to think about this right now. It's good to have this knowledge!
What is a credit card?
A credit card is a financial tool that provides you with the flexibility to borrow money up to a predetermined limit. When you use a credit card, you commit to repaying the borrowed amount, along with interest, through monthly installments. By paying the entire balance by the due date, you can sidestep any interest charges.
What is a charge card?
As opposed to a credit card, where you can roll over your debt every month with a high percent of interest charged, a charge card has to be paid in full. I recommend charge cards if you think you might overspend or have a hard time shopping. It will teach you to pay off your balance in full every month and spend within your means. Once you’ve built up the muscle of spending wisely, you can move to a credit card. We still suggest paying off your bill every month so you don’t spend a lifetime paying back the interest!
Why is a credit score important?
A credit report is regularly run anytime you want to make a big purchase – a car, a home, an apartment rental and sometimes college loans. A credit report is a financial document that outlines how you have managed your finances, encompassing your history of payments and outstanding debts. Lenders utilize this data to assess your eligibility for a loan or line of credit. The credit system in America can be quite intricate. Still, your credit score, which is a numerical representation of your creditworthiness determined by your financial habits and credit background, will play a vital role in various aspects of your future.
What is APR?
Your Annual Percentage Rate (APR) is your interest rate, or how much more you will pay if you keep a balance on your card every month. If an APR or interest rate is 20% and you have a balance of $100 on your card, you’ll owe $120 instead of $100. This is how many people end up in unbearable debt. APR is only applied if you carry an outstanding balance each month, so try to pay off your debt in full every month. The higher the percentage, the more you will pay over time.
I hope this beginner’s guide to credit for college-aged women helps. We prioritize smart and sustainable shopping here at RentedThriftedReal and I hope you create great financial practices that set your future self up for financial success.