10 Best Credit Cards for Students with No Credit in 2024

If you're a college student without any credit history, acquiring a credit card can prove to be quite the challenge. Credit cards can be difficult to qualify for if you lack gainful employment. If you are just entering college at the age of 18, you may also need a parental co-signature.

Most important, interest rates are currently at ten-year highs. In turn, you will be subject to substantial interest charges on outstanding debt if you fail to pay off your credit card balance in full each month.

For these reasons, credit builder cards have become popular options for students, especially those in college who lack an established credit history. Notable examples include Chime, Current, Varo, and more. These cards not only help you avoid taking on debt, but they also help you build a good credit history.

In this guide, we'll walk you through how exactly these student credit cards work and what you should look out for before you make your choice. We also list the top ten credit cards that are perfect for students starting with little or no credit history.

Chime® Credit Builder Visa Card

The Chime® Credit Builder Visa Card is perfect for students aiming to build credit since all of your everyday purchases can be turned into positive credit reports. Chime comes with a Safer Credit Building feature, which you first need to turn on. Then, your on-time payment history can positively impact on your credit score. Chime reports your activities to Transunion®, Experian®, and Equifax®, the three major credit bureaus in the US.

Chime Advantages:

• No annual fees, minimum deposits, or interest charges;
• No credit check to apply;
• Help increase your FICO Score® by an average of 30 points.

Chime Drawbacks:

• Lack of rewards, like cash back;
• Qualifying direct deposit of $200 or more.

Best Overall Credit Card For Students With No Credit

Chime is one of the most well known secure credit cards in the United States, offering students a way to build a positive credit history without annual fees or interest charges. The card also comes with an option high-yield savings account, a $200 overdraft facility, a marketplace to pick up gig work, and a network of over 60,000 ATMs. Chime also charges no international transaction fees, making it ideal for travel abroad.

FDIC-insured parter: The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC
More info: read our in-depth Chime review or visit the Chime website

Current Visa Build Card

The Current Visa Build Card is another secured card that sets money aside in a reserve balance. Current has a good spending insights platform and has a high-yield savings account too.

Current Advantages:

• Can remove holds that gas stations place on your cards;
• Can process paper checks;
• Over 40,000 ATM network.

Current Drawbacks:

• Two direct deposits required to qualify;
• Point rates over 1x only available at participating merchants;
• 3% international transaction fee.

Great Secure Card With a Cash Back Program

Current charges no monthly fees, no annual fee for the card, and has no minimum balance requirement. You can also earn up to 7x the points on card swipes at over 14,000 participating merchants, which you can then redeem for cash back at 100 points per dollar.

More info: read our in-depth Current review or visit the Current website
FDIC-insured parter: Choice Financial Group, Member FDIC

Varo Believe Secured Credit Visa Card

A fully-licensed FDIC-member bank based in the US, Varo offers an excellent account tracking and savings app for students to manage their finances.

Varo Advantages:

• No annual fee and no interest charges;
• Earn up to 6% cash back at select brands;
• No foreign transaction fee.

Varo Drawbacks:

• Requires $500 or more in qualifying direct deposits in the past 90 days.

Best Secure Credit Card from a Licensed Online Bank

Varo has one of the best track records among secured credit cards. According to Varo, their average customers see a 42-point increase in their credit score after 3 months of on-time payments. Furthermore, over 90% of Varo Believe Card customers with no credit score had a score after just one month.

More info: visit the Varo website
Member FDIC: Yes

Capital One SavorOne Student Cash Rewards Credit Card

The Capital One SavorOne Student Cash Rewards Credit Card is a legit credit card that offers no annual fee and has solid cash-back rates.

Capital One Advantages:

• No annual fee;
• Earn unlimited 3% cash back on dining, entertainment, groceries, and more;
• Can earn a $50 cash bonus;
• No foreign transaction fees.

Capital One Drawbacks:

• Requires a hard credit check;
• High-interest rates charges;
• Credit history can go down when the balance isn't paid monthly.

Best for Unsecured Credit for College Students

Capital One offers some of the best credit cards in the country, making their student-exclusive card a good place to start, especially if you would like to enrol in their higher-tier cards in the future. With this card, you can earn a one-time $50 cash bonus once you spend $100 on purchases within 3 months from account opening. Bear in mind that you need to pay you balance in full every month on time to build a good credit score and to avoid paying interest payments on your debt.

More info: visit the Capital One website
Member FDIC: Yes

Discover it® Student Cash Back Card

The Discover it® Student Cash Back Card is usually open for those with little credit history and does not charge an annual membership fee.

Discover Advantages:

• Earn 5% cash back on everyday purchases at Amazon.com, grocery stores, restaurants, and gas stations;
• Earn unlimited 1% cash back on all other purchases;
• No foreign transaction fees.

Discover Drawbacks:

• 5% bonus cash back rate is limited to $1,500 per quarter in spending;
• Bonus categories must be activated quarterly;
• Discover is not as widely accepted as other card types.

Best for Cash Back in the First Year

Discover's Student Cash Back card is a good option for those wanting to build a credit history for the first time and get some cash back rewards at the same time. Their first year bonus program is an unlimited dollar-for-dollar match. For example, you could turn $50 cash back into $100, or $100 into $200, depending on how much you spend. There's no minimum spending or maximum rewards for this first-year bonus. Since this is an unsecured line of credit, make sure to pay you balance in full every month on time avoid paying interest payments on your debt.

More info: visit the Discover website
Member FDIC: Yes

EarnIn Contactless Visa Card

The EarnIn Contactless Visa Card is not a credit card, but a credit history tracking technology. This makes it a great complement to use alongside any of the credit cards mentioned in this guide.

EarnIn Advantages:

• Among the highest fee-free cash advance ($750) on the market;
• No interest and no mandatory fees;
• No hard or soft credit check.

EarnIn Drawbacks:

• Requires proven track record of trustworthy employment;
• Requires direct debit history.

Best for Students With Current Employment

EarnIn is a fintech company that helps you free up your cash flow each month. By connecting your paycheck to the account by direct debit, EarnIn can give you cash advances of your salary before payday. Spend up to $750 each month without having to wait for your employer. The account also comes with credit monitoring, where you can view credit usage, open accounts, and payment history. This makes EarnIn a great way to manage all of the bank accounts and credit cards you have open, and keep your credit score history strong.

More info: visit the EarnIn website
FDIC-insured parter: Evolve Bank & Trust, Member FDIC

Dave ExtraCash™ Debit Mastercard

The Dave ExtraCash™ Debit Mastercard is not a credit card, but a debit Mastercard that allows students to access up to $500 of fee-free overdraft protection. You won't be subject to interest charges or late fees on that debt.

Dave Advantages:

• No annual fee or membership fee;
• No interest charges or late fees;
• No credit check required.

Dave Drawbacks:

• Does not build credit history;
• Dave determines your cash advance limit.

Best for Large Cash Advances

Dave is a great option to access interest-free cash advances, which are also not subject to late fees. This beats using a traditional bank's overdraft facility, which charges late fees and levied interest on the overdraft amount. Dave will transfer your advance to your Dave Spending account instantly. They'll also give you the option of sending the money to a different debit card within an hour for a small fee or separate bank account in 1–3 days for free.

More info: read our Dave comparison guide visit the Dave website
FDIC-insured parter: Evolve Bank & Trust, Member FDIC

Brigit Credit Builder Loan

The Brigit Credit Builder Loan, unlike the typical credit card, allows students to build credit by financing small, affordable loans. It does so by helping you apply for a 24-month loan, which is kept untouched in an online deposit account.

Brigit Advantages:

• Requires you to save as little as $1 per month to build credit;
• No credit approval required;
• No interest or upfront deposit.

Brigit Drawbacks:

• Only Plus members ($9.99/mo) can access the credit builder;
• Loan cannot be accessed via a physical or virtual credit card.

Best Loan Program for Students

Brigit is a good introduction to loans for beginners who have never taken on debt from a lender before. However, you need to be a Plus member for $9.99 per month to get the cash advances and access the credit builder. Free subscribers can find side gigs and access their financial planner platform.

More info: read our Brigit comparison guide or visit the Brigit website
FDIC-insured parter: Coastal Community Bank, Member FDIC

Bank of America® Customized Cash Rewards Visa Card

The Bank of America® Customized Cash Rewards Visa Card offers high cash-back rates. Students can choose the type of spending category to earn cash back, such as groceries, gas, dining, and more.

Bank of America Advantages:

• No annual membership fee;
• Intro APR on 0% for first 15 billing cycles;
• 3% cash back in the category of your choice
• 2% cash back at grocery stores and wholesale clubs;
• 1% cash back on all other purchases.

Bank of America Drawbacks:

• High penalty APR;
• Late fees;
• High standard APR;
• 3% foreign transaction fee.

Best Student Credit Card for Intro Rewards

This Bank of America student card has an intro 0% APR offer with a generous term of 15 billing cycles and competitive cash-back reward rates. It's also got a welcome bonus of $200 that's easy to earn. You'll just need to make at least $1,000 in purchases in the first 90 days of your account opening.

More info: visit the Bank of America website
Member FDIC: Yes

Possible Finance Possible Mastercard

The Possible Finance Possible Mastercard is a credit-building card that also extends a line of credit between $400 to $800. Due to its mandatory monthly membership fee of either $8 or $16 (depending on the tier you choose), we recommend other credit builders like Chime, which offer similar benefits without a monthly fee.

Possible Finance Advantages:

• Build credit history;
• Borrow up to $500 instantly;
• No late fees or interest fees;

Possible Finance Drawbacks:

• Costs $8 or $16, depending on membership plan;
• No cash back or other rewards program

Straightforward Card to Access a Line of Credit

Possible Finance offers a $400 line of credit if you subscribe for $8 per month or an $800 line of credit if you subscribe for $16 per month. Possible Finance does not require a credit check or deposit. It never charges interest fees or late fees, making it a straightforward way to access credit. You can also pay over time in 4 installments.

More info: visit the Possible Finance website
FDIC-insured parter: Coastal Community Bank, Member FDIC

Summary: Compare the 10 Best Student Credit Cards in 2024

To help you navigate the diverse landscape of student credit cards available in 2024, we have compiled a comprehensive comparison chart highlighting the key features of the top 10 options.

From credit limits to APRs, rewards programs to annual fees, this chart provides a succinct overview of each credit card's offerings:

What Is a Student Credit Card?

Green Chameleon on Unsplash

A student credit card is specially tailored to meet the financial requirements of students in college or university. Given that students (especially at 18 years of age) often have limited or no income, collateral, or credit history, such cards adjust their requirements accordingly. They usually come with fewer perks and smaller credit limits compared to standard consumer cards, which cater to individuals with a robust credit score and higher incomes.

Another category that caters to students is secured credit cards, primarily designed to help newcomers build their credit foundation in a safe and predictable manner.

Types of Student Credit Cards

The two main kinds of cards that report your credit history to credit bureaus are secured credit cards and unsecured credit cards. The main difference between the two is the requirement of a cash deposit or collateral:

1: Secured Credit Cards

Secured Credit Card providers issue you a secured line of credit. If the cardholder defaults on their payments, the issuer can use the deposit to cover the unpaid debts. Then, they report your on-time monthly payments to major American credit bureaus, which can improve your credit score.

These often require an upfront security deposit that doubles as the credit limit. The primary purpose is to build credit with minimal risk for the issuer.

2: Unsecured Credit Cards

Unsecured Credit Cards issue lines of credit (debt) and don't require an upfront security deposit. Your credit limit is based on your creditworthiness, current income, and other factors. As there is no safety net or collateral, these cards generally require a good to excellent credit history.

These are the most common type of credit cards available, and they charge interest fees on unpaid debts each month. They also tend to offer more rewards for spending, and have wide networks of participating merchants.

How to Get a Student Credit Card With No Credit

Many card providers offer introductory cards with minimal initial requirements, making them ideal for individuals building their credit profile. Keep in mind that a hard pull could be performed on your credit history, potentially causing a slight, temporary dip in your credit score.

You'll also need to provide your Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) when applying.

If the process seems tedious, consider opting for a secured credit card that doesn't require a credit check. Although the virtual version of these cards is issued almost instantly, the physical card generally arrives by mail in a few days.

How to Build Credit When You Have No Credit History

Credit builder cards are the most straightforward tools to build credit when you have no credit history. Have a look at the following key behaviors that credit card companies and credit bureaus tend to take into consideration when calculating your credit score:

1. Always Pay on Time: Repay your debt before the set monthly deadlines to avoid accruing late fees and adversely affecting your credit score. You should aim to repay the monthly balance in full. If you don't have the funds to do so, pay the minimum requirement on time at the very least.
2. Keep a Low Credit Utilization Ratio: Maintaining a low credit utilization ratio — the percentage of your total credit limit in use — reflects well on your credit management skills. A lower ratio indicates to potential creditors that you have effective spending control.
3. Use Your Card Regularly and Responsibly: Regular but responsible credit card use demonstrates your ability to manage debt. However, if the full balance isn't paid within the card's set deadline each month, the APR interest rate comes into effect. This interest is added to the remaining balance, thereby increasing your debt, which can negatively affect your credit score.
4. Set Up AutoPay: Automated payments ensure you never miss a payment due date. Most credit card apps, including all those featured in this article, provide an AutoPay feature, allowing you to set up automatic full balance payments either on or before the due date.
5. Keep Your Account Open if Possible: Longer good credit histories usually result in higher credit scores. If your credit card doesn’t have an annual fee, consider keeping it open to lengthen your credit history. Conversely, constantly opening and closing too many credit lines can hurt your credit score.

7 Factors to Consider When Choosing a Student Credit Card With No Credit

Selecting the right student credit card requires you to weigh several factors. Here are 7 of the most important:

1. Interest Rates: Interest rates represent the cost of borrowing. A higher interest rate means a higher cost if the balance isn't paid in full monthly. Most interest rates are variable, and they adjust as per the market trends. For example, interest rates are high nationwide in 2024 because the federal reserve raised their rates, which affects financiers across the country.
2. Annual Fees: Most student cards do not charge annual membership fees. However, cards offering superior benefits, like travel perks, might come with very high annual fees.
3. Rewards Programs: Rewards incentivize credit card usage. These come in several forms, including cash back or redeemable points toward other purchases. Reward programs are only worth looking into if you can assure yourself that you can pay back your monthly balances in full — to avoid interest fees or late fees.
4. Security Deposits: For secured credit cards, you're usually required to provide a security deposit serving as collateral. This deposit usually equals your credit limit.
5. Credit Reporting: Consider which credit bureaus your card reports to. The more comprehensive reporting enables you to build a more balanced credit profile. All of the cards in this guide report to the three main credit bureaus in the United States: Equifax, Experian, and TransUnion.
6. Foreign Transaction Fees: Foreign transaction fees quickly add up when you use your credit card abroad. We always recommend opting for a card that has no foreign transaction fees. For more in-depth info, consider reading our guide on the best debit cards with no foreign transaction fees.
7. International Acceptance: Brands like Visa and Mastercard are widely accepted worldwide at both merchants and ATMs. In comparison, others like Discover and American Express may not enjoy the same level of universal acceptance. Keep this in mind if you study abroad or travel internationally during summer break.

5 Reasons to Build Credit as a Young Student

When you build up your reputation as a creditworthy borrower, it opens the door to larger lines of credit. Having the ability to get issued large debts and pay them off is important because it can help you cheaply finance some of life's most important purchases.

Let's unpack some of these scenarios where your credit history might significantly impact your journey:

1. Borrowing Money: Having a solid credit history is crucial for when you want to make big purchases later in life, like buying a car or getting a mortgage for a house. Lenders check your credit score to decide how reliable you are with borrowing money. If your credit history is not great, they'll charge you higher interest rates. By building a strong credit score with a credit builder card, you'll get lower interest rates on future loans. Down the line, this can save you hundreds or even thousands of dollars every month.
2. Renting: Landlords will sometimes run credit checks on their tenants. When the rental market is competitive, landlords are more likely to favor tenants with a good credit history as it assures them of less risk in terms of timely rent payments.
3. Setting Up Utilities: Utility companies may require a credit check before establishing service. If your credit history is poor, you may have to pay a deposit or provide a letter of guarantee, adding extra efforts and costs. A good credit score can steer you clear of such hurdles.
4. Getting Hired: Certain occupations, especially those that involve managing finances, could require a credit check as part of their hiring process.
5. Starting a Business: When you're looking to finance a startup or small business, lenders often look at personal credit scores, especially if your new business doesn't have a credit history of its own. A strong personal credit score can tip the scale in your favor, qualifying your business for loans or credit with affordable rates.

Recap of the Best Student Credit Cards in 2024

Here is our top 10 credit cards for students with no credit history in 2024:

1. Chime® Credit Builder — Best Overall For Students With No Credit
2. Current Build — Great Secure Card With a Cash Back Program
3. Varo Believe — Best Secure Credit Card from a Licensed Online Bank
4. Capital One SavorOne Student Cash — Best for Unsecured Credit
5. Discover it® Student Cash Back — Best for Cash Back in the First Year
6. EarnIn — Best for Students With Current Employment
7. Dave — Best for Large Cash Advances
8. Brigit — Best Loan Program for Students
9. Bank of America® Customized Cash Rewards — Best for Intro Rewards
10. Possible Finance — Straightforward Card to Access a Line of Credit

Disclaimers

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

¹ Out-of-network ATM withdrawal and over-the-counter advance fees may apply. See here for details.

² To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

³ The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change anytime. The disclosed APY is effective as of September 20, 2023. No minimum balance is required. Must have $0.01 in savings to earn interest.

⁴ On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.

⁵ SpotMe® on Credit is an optional, no-interest/no-fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Credit Builder Account. SpotMe on Debit is an optional, no-fee overdraft service attached to the Chime Checking Account available to qualifying members after Visa debit card activation. Both SpotMe on Credit and SpotMe on Debit are sometimes collectively referred to as "SpotMe" or, if you have signed up to use SpotMe with only one account, "SpotMe" means the elected service. To qualify for SpotMe, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account monthly. Qualifying members will be allowed to overdraw their Chime Checking Account and/or Secured Deposit Account (associated with your Chime Credit Builder credit card) up to $20 but may be later eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe Debit Terms and Conditions and SpotMe on Credit Terms and Conditions.