The 7 Best Credit Cards For Students With Bad Credit

Generally, most students contribute to the high percentage of people with little to no credit history. However, the credit cards for students with bad credit contain much lower credit limits as compared to other credit cards. Fortunately, the requirements for getting approved are less stringent; hence, students can comfortably apply even with little to no credit history. When the card gets used responsibly, the students can build a solid foundation of credit even before graduating.

Additionally, student credit cards come accompanied by financial education tools such as payment reminders, and rewards designed for students, including a cash-back token for timely payments or for achieving good grades. Besides the card helps students build credit, they also learn good spending habits. Card issuers like Discover, Citi, Chase, and Capital one provides cards specifically for students with little or no credit history.

Moreover, don’t expect to qualify for a credit card by the mere fact that you are a student. The best credit cards for students with no credit score fall under 580 out of a range of between 300-850 as stipulated by FICO. With the 850 scores being the best score. Nevertheless, to attain a good or excellent credit score, you have to climb the ladder up to at least 700.

How Do You Get a Student With No Credit Or Bad Credit?

Credit Cards For Students With Bad Credit

According to the Credit Card Acts of 2009, any consumer aged 21 must be having their source of income, even when the card requires no credit. In other words, when applying for a card regardless of your credit, you must make sure that you have the right credit rating, to enable the issuer to determine if you are a good credit risk.  Otherwise, if you are not eligible for a student card, a secured credit card might be an excellent option.

What Are The Types Of Credit Cards?

There exist two categories of cards to choose from when you’re looking for a credit card with bad credit. They include secured and unsecured cards and are both a useful tool in rebuilding your credit.

i) Secured credit cards

For secured credit cards, a refundable deposit is mandatory, which usually equates to your credit limit. However, with most cards, timely payment after 6-12 months may get your deposit back and upgrade to an unsecured credit card containing a higher limit.

ii) Unsecured credit cards

However, an unsecured credit card provides an “unsecured” line of credit for credit cards for bad credit no deposit. This means that you don’t have to put down a security deposit for you to borrow money. You receive a credit limit depending on your creditworthiness, and you can borrow up to that amount.

How Do You Transfer Funds With a Credit Card?

The prime use of a credit card is for paying goods and services and not a method of sending money to your bank. However, there are versatile mobile Apps by which money transfer has been made quick and easy. You can send money from credit account to bank account instantly online by using MoneyGram or Western union.

How Can You Transfer Money To Your Bank Using a Prepaid Card?

If you have traveled to another country and you are reluctant to use your regular bank card to send money due to international charges, you can use a prepaid card since its cheaper. You can transfer money from a prepaid card to a bank account through logging in to the prepaid card website or app and perform the transaction. Otherwise, if your prepaid card doesn’t support transfers to bank accounts, you can make the transfer using a third party like MoneyGram.

What Are The 7 Best Credit Cards For Students With Bad Credit?

1. Journey Student Rewards from Capital One

The Journey Student Rewards from Capital One card gets created for students with bad credit, but still, you may require some means of income to qualify for this card. Besides, if your monthly income is not greater than your monthly rent or mortgage payment by at least $800, you may not be eligible. The Journey Student Rewards from Capital One card accompanies a variable 26.99% APR for purchases and balance transfers.

On the other hand, the card offers multiple rewards including a 1% cashback on all your eligible purchases, translating to a total boost of 1.25% for every billing cycle for making at least the minimum payment on time. Additionally, you may qualify for a credit limit increase that helps build your credit and lower your credit utilization ration, after six months of timely payments.

2. Deserve EDU Mastercard

The Deserve EDU Mastercard provides a chance for college students to begin from scratch. Interestingly, this card allows international students to access a credit card without possessing a Social Security number. For the international student who wishes to make overseas trips back home, this card comes with Mastercard Platinum benefits such as ID theft protection, plus zero foreign transaction fees.

However, the Deserve EDU Mastercard rewards include a1% cashback, for all eligible purchases as statement credits, and comes with an 18.74% variable APR for purchases. You’ll also receive one year of Amazon Prime Student referring to a lifetime value of $59 when you use the card to enroll for the service, plus consume the card in spending $500 in the first three billing cycles.

3. Discover it Student Cash Back

Discover comes with a 0% introductory APR on purchases for 6 months, then afterward the standard variable purchase APR of 12.99% – 21.99% applies. However, it automatically matches all the cashback you’ve received at the end of your first year, with no minimum spending or maximum rewards.

You can earn 5% cashback on everyday purchases at separate places each quarter like grocery stores, Amazon.com, gas stations, restaurants, and paying using PayPal, up to the quarterly maximum when you activate.

Additionally, you can automatically earn an unlimited 1% cashback on all other purchases. There are also good grades rewards including a $20 statement credit each school calendrer your GPA is 3.0 or higher for up to the next 5 years. Still, you get 100% U.S.-based customer support, your free Credit Scorecard containing your FICO Credit Score, number of recent inquiries, and more.

4. Discover it Student Chrome

Discover it Student chrome lets you earn 2% cashback at Restaurants and Gas Stations on up to $1,000 in combined purchases quarterly. Additionally, you can earn an unlimited 1% cashback on all other purchases automatically.

There is also good grades rewards of $20 statement credit each school year you attain a 3.0 GPA or higher for up to the next 5 years. The Discover it Student chrome card comes with 0% introductory APR on purchases for 6 months, then the standard variable purchase APR of 12.99% – 21.99% applies.

5. Bank of America Travel Rewards Credit Card for Students

With the Bank of America Travel Rewards Credit Card for Students, you can enjoy no annual fee and no foreign transaction fees alongside earning points to utilize for a statement credit to pay for hotels, cruises, flights, vacation packages, baggage fees, or rental car fees.

Besides, you can earn unlimited 1.5 points in each $1 you utilize on all purchases anytime with no expiration on points. On top, there are 25,000 online bonus points attainable when you make at least $1,000 in purchases for the first 90 days following your account opening, which is redeemable for a $250 statement credit toward travel purchases.

Rates and fees;

  • Annual Fee- $0
  • APR- 14.99% to 22.99%, based on your creditworthiness
  • Penalty APR- Up to 29.99%
  • Purchase Intro APR- 0% Introductory APR for the first 12 Statement Closing Dates following the opening of your account
  • Balance Transfer Fee- $10 or 3% of the amount of each transaction, whichever is greater

6. Wells Fargo Cash Back College Card

Wells Fargo Cash Back College Card enables you to build a credit history while you’re still in college. You get to earn 3% cash rewards for up to $2,500 spent on grocery, gas, and drugstore purchases for the first 6 months. Plus, you can enjoy 1% cash rewards for other purchases.

For balance transfer, the Wells Fargo Cash Back College Card charge an introductory fee of either $5 or 3% of the amount for every balance transfer, whichever is greater, for 120 days from account opening. Afterward, the charges are up to 5% for each balance transfer, with a minimum of $5.

Fees and rates;

  1. Annual fees- $0
  2. APR- 11.15% to 21.15%, based on your creditworthiness
  • Penalty APR- None
  1. Purchase Intro APR- 0% introductory APR for 6 months
  2. Cash Advance Fee- Either $10 or 5% of the amount of each advance, whichever is greater
  3. Foreign Transaction Fees- 3% of each transaction converted to U.S. dollars

7. Citi Thank You Preferred Card for College Students

This card attaches no annual fee, plus no annual percentage rate for purchases incurred in the first seven months after receiving the card. Students receive 2X points for purchases on entertainment and dining, and 1X point for all other purchases, in addition to 2,500 points when they spend $500 within the first quarter of opening their account.

Besides, the Citi ThankYou Preferred card offers easy online access to account details, the ability to select the payment due date, plus protection from unauthorized charges.

Bottom line

If you are a student struggling to get means of servicing your bills while in school, don’t worry. The above credit cards can be of great use for paying your meals, grocery, entertainment, travel bill among other similar use. Regardless of your credit score, you can genuinely find a card that best suits your needs. Hence, don’t make your study life a living hell, you can pick either of the above credit cards, study comfortably, get good grades, and improve your future.