8 things you should know before applying for a credit card in college
Editor's Note
During my sophomore year of college, I received a Wells Fargo student credit card application in the mail. I initially got the card for emergencies and to kick-start building my credit.
Truth be told, I didn't know what it meant to get my first credit card in my name. But the card has been the right addition to my wallet as I have learned about the value of credit cards.
So here are some tips that I think everyone should know before submitting that credit card application in college.
Related: The best credit cards for college students
How to use your credit card in college
Build your credit
Starting a credit line in college can help you establish a good credit score.
The length of your credit plays a vital role in determining your financial power. A person with a long credit history showing on-time payments is deemed more trustworthy to creditors and lenders.
Good credit habits can make you more likely to be approved for your first apartment or car.
Related: The ultimate guide to credit card application restrictions
Plan for emergencies
There's an old saying "expect the unexpected."
Having a credit card in college allows you to use it as a safety net to help when those unexpected inconveniences happen, such as a flat tire or the need to catch a last-minute flight back home.
Just be sure to pay your balance on time so that you don't incur interest.
Earn rewards
There are many perks of having a credit card, including purchase and travel protections. You can also earn cash-back rewards, depending on the card you choose. These can be redeemed to your savings account or for traveling for cheap.
There are plenty of do's and don'ts once you do receive your card, so understanding the 10 commandments of credit card rewards is essential.
Related: 5 mistakes to avoid when you get your first credit card
How to apply for a credit card
Check your credit score
Knowing and understanding your credit score will help you understand your chances of approval for your first credit card. There are plenty of cards that will approve college students who may not have established credit, such as secured cards that allow you to build credit with your deposit acting as your line of credit.
There are a few ways to check your credit score. Depending on your bank, you may have access to your FICO score at no cost. If your bank doesn't have this feature, you can visit AnnualCreditReport.com. You can also receive one free annual credit report from each of the three major credit reporting agencies (TransUnion, Experian and Equifax).
Gather application documents
Different cards have different requirements but you'll definitely need two things — proof of age and proof of identification.
To obtain a card completely in your name, you typically have to be 18 years old. If you are under the age of 21, you must also be able to prove that you can make payments on your own. If not, you will likely need a co-signer. That co-signer should have a good credit score and must be able to show that they have enough income to make payments in case you miss one.
To prove your identity, some issuers may require that you have documentation that shows your U.S. address. Others may require a Social Security number or an Individual Taxpayer Identification Number.
Related: How to apply for a credit card
Submit your application and wait
Depending on the credit card issuer, you can submit your application online, in person, over the phone or by mail.
After applying for a credit card, the next step is to await the decision. According to federal guidelines, issuers are required to notify you of approval or denial within 30 days of your application submission. While you're waiting on a response, think about how you'll use the card, create a budget and set up a repayment plan. For example, I use my credit card for gas, groceries and dinner with friends.
If you are denied, keep a lookout for a letter detailing the reason.
Set a repayment plan
One of the best ways to make the best of your card is to only charge what you can afford. For your repayment strategy, be sure to budget for at least making the minimum payments. However, keeping your credit utilization as close to 0% if possible is recommended as it will boost your credit score.
Related: The beginner's guide to credit cards
Types of college credit cards to consider
When comparing the different types of credit cards, it is important to think about how you can benefit from the card in the first place.
You may choose a secured card if you're building or repairing your credit or a cash-back credit card if you would like to receive a percentage of the money that you spent back.
Understand that there is no perfect credit card, but there may be one that meets your goals more than others, such as building credit or earning rewards.
Related: Why there's no such thing as the 'best' credit card
Student credit card
A student credit card is the easiest card to be approved for as a college student applying for their first card with little to no credit history. Student credit cards work the same way as most credit cards. However, one big difference is that many don't have the features and rewards that credit cards do.
Still, some student cards earn valuable rewards. The Capital One Savor Student Cash Rewards Credit Card for instance, is one of our top recommendations for most college students for this reason.
Cardholders can earn unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®). For example, if I were to spend $200 on dinner, I would earn $6 cash back that can be used toward another purchase.
Secured credit card
A secured credit card is a great option if you're building or repairing credit or if you're having trouble getting approved for a rewards card. The card is backed up with your cash deposit that will serve as collateral on the account. That means that the user has extra security in case the cardholder cannot make a payment.
The Discover it® Secured Credit Card is our top secured credit card that earns rewards. With no annual fee, you can earn 2% cash back at gas stations and restaurants. And, as a cardholder, you can also check your FICO score for free.
The information for the Discover it Secured credit 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.
Bottom line
As a college student, I understand that the word "credit" can trigger many emotions — fear of messing up your credit early on or excitement for adulthood. Credit cards often come with negative misperceptions, especially when it comes to college students.
But think of it this way: Opening a credit card in college is a great way to build your credit history. It can have a positive impact on the milestones that you may want to achieve after graduating, such as purchasing your first house or car.
Remember to be patient with yourself, as the world of credit can be overwhelming for newbies.
And lastly, always do your research and use your card responsibly.
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Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.