The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Advertiser disclosure
The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
News
A college student debunks these 5 credit card myths
Featured image by TASHDIQUE MEHTAJ AHMED/GETTY IMAGES
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
Related stories
Quick summary
The article dispels common myths about student credit cards, emphasizing that responsible use does not automatically lead to debt.
It highlights that students and those with limited credit history can access options designed for beginners, including secured and student-specific cards.
Responsible credit card use can help build a positive credit history, which benefits long-term financial health.
Students can earn rewards such as points, miles or cashback, which can be valuable for travel and everyday expenses.
What to consider
Opening multiple accounts or mismanaging balances can negatively affect your credit score, but a single, well-managed account typically has minimal impact.
A temporary, small drop in your credit score may occur due to a hard inquiry when applying, but this is usually short-lived.
Students should research card options to find those that best fit their spending habits and goals, especially regarding rewards and interest rates.
What you'll miss from the article
A detailed breakdown of student credit card misconceptions and practical tips for building credit and maximizing rewards as a college student.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
In the movies, college kids are always seen applying for their first credit card on a whim after not being able to cover an expense, such as spring break (this is how The Points Guy, Brian Kelly, got started). Not surprisingly, they end up in debt and have to come up with a way to fix the mess.
However, that’s one of the common misconceptions young people have unfortunately learned: credit cards don’t have to become a financial burden. There are plenty of positive attributes and perks that you miss out on when you avoid credit cards and only stick to cash and your debit card. Below I outline other student credit card myths.
Credit cards only lead to debt
I got my first credit card, the Discover it Cash Back, during my sophomore year in college. Although my spending habits have always been a little more on the wild side, I never ran into debt because I followed the age-old rule: don’t spend what you don’t have. The information for the Discover it card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Responsible credit card use will keep you out of debt and from negatively impacting your credit score. A lot of people see credit cards and think free money since the charges don’t have to be paid back right away. This is a sure way for you to acquire debt because what you don’t pay at the end of the month will have interest added on to it.
Credit cards also have a lot of benefits that you can access if you manage your spending right. Ultimately you can build credit that will help benefit you throughout life.
When you use credit cards responsibly, you can actually save money. (Photo by basakt/Twenty20
Young people can’t apply for credit cards
Most people don’t have any credit history in coming into their 20s, and it can be hard to know where to start when you may still be supported by your parents. There are plenty of student cards out there that are great for those who don’t have a credit history and may not have a steady income. Even those who have absolutely no credit at all can apply for secured credit cards when starting out.
Student cards often offer no annual fee and include incentives for paying your bills on time, such as extra cashback. The Discover It Student Cash Back card offers a $20 credit for having GPA of over 3.0.
If you’re opening tons of credit lines and racking up debt on each one, yes -- credit cards will hurt your credit score. However, responsibly opening one card won’t do any damage. Your credit score is calculated by a few factors and opening a credit card is a small percentage.
When you open a credit card, the company does something called a “hard inquiry” when they look into your credit. After applying for a credit card you can expect your score to drop by around five points, but don’t worry -- it’s not permanent.
Credit cards should only be used for basic expenses
A credit card can offer many more perks than you may realize. From points and miles to savings on purchases on the various expenses, credit cards can actually save you a lot of money over time.
There are many cards that are great for everyday spending such as the Chase Freedom Unlimited card, which will reward you 5% cash back on travel purchased through Chase Ultimate Rewards, 3% on drugstore purchases and dining at restaurants, and 1.5% on everything else.
If you absolutely need to use a credit card to pay for an expense that you might not have the funds on hand for, make sure to do your research into which of your cards is best. Some cards have higher interest rates than others which can harm you in the long run.
If you have the right credit card(s), you can use them for essentially any purchase — not just basic expenses. (Photo by Justin Lewis/Getty Images)
You can’t earn points and miles as a student
Points and miles have never been at the forefront of my mind -- but they should have been. If I (along with my fellow students) had more information about how to utilize rewards programs, points and miles could have come in handy for all those spring break trips we’ve taken over the years. Points and miles can you free nights at hotels, airfare and much more.
Do your research and find a card that best fits your lifestyle. I frequently use Amtrak to get back and forth from school so the Amtrak Guest Rewards Mastercard could be a great way for me to gain points that will upgrade my travel experience.
As you build credit you may become eligible for more cards. Travel cards, hotel cards, airline cards and transferable points cards are some great ways to earn points and miles. The information for the Amtrak Guest Rewards World Mastercard has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Credit cards can be a great tool for college students looking to maximize rewards that can help to elevate their college experience. As a young person remember, credit cards are not your enemy. With proper usage and a class or two on financial literacy, you can build credit and become a (responsible) credit card master in no time.
If you’re ready to dive into the world of credit cards, points and miles make sure to check out TPG’s beginner guide.
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
