What is a student credit card?

Student credit cards are generally the same as most other credit cards, but they’re designed specifically for students with a limited credit history. Student credit cards may have lower credit limits. But they might also feature rewards and benefits tailored to students.

What you’ll learn:

• Student credit cards aren’t that different from regular credit cards. But they might come with a lower credit limit.

• To qualify for a student credit card, you need to be at least 18. If you’re under 21, you’ll have to show proof of income.

• With responsible use, you can use a student credit card to establish a credit history.

• You can also use a student credit card to learn how to manage your finances and help protect your money from fraud.

A student credit card offers a revolving line of credit up to a set limit that you can continuously borrow from and pay back for as long as the account is open. You’ll make monthly repayments plus pay any interest and fees on the designated due date.

Your credit card activity is reported to the three major credit bureaus—Equifax®, Experian® and TransUnion®. So if you use the card responsibly by doing things like making on-time payments, that information can add up over time and help build your credit history. And that can help when you’re ready to take steps like applying for a car loan, qualifying for a mortgage or even landing your first job.

Keep in mind, though, that all credit activity, not just the positive, is reported.

To qualify for a student card, you must meet certain requirements. Federal law requires you to be at least 18 to apply. And if you’re under 21, you’ll have to show proof of income.

Some lenders may also require you to be enrolled in college. For example, you could be eligible for a Capital One student card if you’re enrolled, or admitted and planning to enroll in the next three months, at an accredited university, community college or other higher education institution.

A credit card can be a safe and convenient way to pay if you’re shopping online, buying groceries, paying bills, studying abroad or studying in the U.S. as an international student. Here are some other ways credit cards for college students can be helpful when they’re used responsibly.

How you use and repay debt affects the information in your credit reports and ultimately your credit scores. Companies can use that information to decide whether to offer you a car loan, an apartment, a mortgage and sometimes even a job. Building credit while you’re in school means you won’t be starting from scratch when you graduate.

If you don’t have an emergency fund, a credit card could help you deal with an unexpected cost like your car breaking down or your laptop needing an upgrade. Just make sure you’re clear about what’s really an emergency, and have a plan in place for how you’ll pay off credit card debt.

Having a credit card can help you build financial literacy through doing things like budgeting and making on-time payments.

Not all student credit cards offer you the chance to earn cash back rewards as you spend. Capital One has two. With the Quicksilver for Students card, you can earn unlimited 1.5% cash back on every purchase, every day. The Savor Student credit card offers unlimited 3% cash back at grocery stores and on dining, entertainment and popular streaming services, plus 1% cash back on everything else. Both cards allow you to redeem your rewards for cash, for a statement credit, to cover recent purchases or for gift cards.

Your student card may offer special benefits like credits for subscriptions to streaming services when you pay your bill on time.

If your cash is stolen, there might not be much you can do about it. But if you lose money through credit card fraud, you might not be held responsible. If your Capital One card is lost or stolen, you won’t be responsible for unauthorized charges.

Student credit cards typically aren’t that different from other credit cards. But because cardholders generally haven’t had a chance to demonstrate their creditworthiness yet, they have lower credit limits, which could be helpful for first-time cardholders learning to manage bills. Cardholders may be eligible for a credit limit increase with responsible use over time. The rewards may also be tailored for students.

A student credit card works just like a regular credit card but is designed for college students. As you make payments on time and learn to manage your finances, you can build credit.

If you think you’re ready, you can compare the student credit cards from Capital One to see which one might work for you. You can even see whether you’re pre-approved with no impact on your credit scores.