Student Credit Cards vs. Regular: What’s the Difference?

One key difference between student credit cards and normal cards is that the former are usually made available only for students. During the application process, students need to provide proof of enrollment. Since card issuers provide such cards to students with little to no credit histories, these cards tend to come with higher interest rates than regular cards. Choosing between the two might boil down to whether or not you qualify for a regular card. No matter which card you choose and qualify for, as long as you use the card properly, you can build your credit.

A student credit card is designed for students enrolled in accredited educational institutions. It's aimed at providing students with an initial introduction to credit and credit building. These cards acknowledge the unique financial situations of students, often featuring terms and conditions tailored to individuals with limited or no credit history.

On the other hand, a regular credit card, sometimes termed a "standard" credit card, is a general-purpose credit card available to the broader public. Unlike student credit cards, they aren't limited by the demographic of the cardholder. Regular credit cards come in various forms and offer diverse benefits and features. You typically need an established credit history or some form of credit background to be eligible.

The table below shows an overview of the key differences between a student credit card and a regular/general credit card:

Eligibility requirements differ between student and general credit cards due to their target demographic and intended purposes. Here's a breakdown of the primary differences:

Eligibility Requirements for Student Credit Cards

• Proof of Enrollment: Issuers usually require verification that the applicant is currently enrolled in an accredited college or university. Proof of Enrollment can be in the form of a student ID, enrollment letter or other documents from the college or university.
• Age: You must typically be at least 18 years old.
• Limited or No Credit History: Student credit cards are tailored for those who haven't had the opportunity to build a significant credit history. Having limited or even no prior credit is generally acceptable.
• Income Source: Some card issuers may ask for proof of some form of income, but they understand it might not be substantial. The income could be from a part-time job, internship or allowance.
• U.S. Social Security Number (SSN): Some issuers may require an SSN for international students, while others might be more lenient and accept an Individual Taxpayer Identification Number (ITIN) or other forms of identification.
• Co-Signer Option: Because students might not have a substantial credit history or income, some issuers allow for a co-signer on the application. A co-signer, typically a parent or guardian, shares responsibility for the debt, making issuers more comfortable extending credit.

Eligibility Requirements for General (Regular) Credit Cards

• Credit History: One of the primary determinants for eligibility is the applicant's credit history. Issuers want to see how an individual has managed debt in the past. Issuers prefer those with good to excellent credit scores, though there are cards tailored for those with poor or no credit.
• Stable Income: Issuers usually require proof of a stable income to ensure the applicant can handle the credit line and make timely payments. This is a more stringent requirement compared to student cards.
• Age: As with student cards, applicants must generally be at least 18 years old.
• U.S. Social Security Number (SSN): A valid SSN is almost always required.
• Other Factors: Issuers may consider other factors such as existing debts, monthly housing obligations (like rent or mortgage payments) and overall financial stability.

When comparing credit limits for student credit cards and general credit cards, here are the primary differences:

The features and benefits of credit cards can be a distinguishing factor in consumers' choices. While both types of cards offer valuable features and benefits, student credit cards are tailored to students' specific needs and lifestyles, emphasizing financial education and affordability. On the other hand, general credit cards present a broader spectrum of rewards and perks, often aligning with the wider adult population's diverse financial habits and goals.

Features and Benefits of Student Credit Cards

• Educational Resources: Many student credit cards come with tools and resources to educate the cardholder about credit, such as managing credit responsibly, paying on time and understanding credit scores.
• Rewards for Academic Achievement: Some student credit cards offer incentives for good grades, providing cash back or bonus rewards for maintaining a certain GPA.
• No or Low Annual Fees: Recognizing that many students are on tight budgets, student cards often have no or very low annual fees.
• Specialized Reward Categories: These cards may offer higher rewards or cash back for spending in categories popular among students, such as dining out or bookstores.
• Introductory Offers: Some student cards come with introductory offers like 0% APR for a set period or cash back bonuses after making the first purchase.

Features & Benefits of General (Regular) Credit Cards

• Diverse Reward Programs: Regular credit cards can come with a wide variety of rewards programs, including travel points, cash back, hotel and airline points and more.
• Sign-up Bonuses: Many general credit cards provide significant bonuses for new cardholders who spend a certain amount within the first few months.
• Extended Perks: These include travel insurance, car rental insurance, price protection, extended warranty and exclusive access to events or priority services.
• Premium Services: Some high-end general credit cards offer concierge services, airport lounge access and annual travel credits.
• Variable Annual Fees: Depending on the card and its perks, the annual fee can range from zero to several hundred dollars. Premium cards with extensive benefits tend to charge higher annual fees.

While student and general credit cards can have associated costs, student cards are generally structured to be more forgiving and to accommodate newcomers to credit. In contrast, general credit cards' rates and fees can span a broad spectrum based on the card's offerings and the cardholder's credit profile.

Building credit is a significant reason many individuals seek out their first credit card. Both student and regular credit cards can serve this purpose, but there are some nuances in their approach and functionality:

Student Credit Cards and Building Credit

• Foundational Credit Building: Student credit cards are often the first credit product for many young adults, making them an introductory tool for establishing a credit history.
• Regular Reporting: Like other credit cards, student cards report to the major credit bureaus. Responsible usage, like on-time payments and low credit utilization, can positively impact a student's credit score.
• Forgiving of Novice Mistakes: Recognizing that students are new to credit management, some student card issuers may offer features like waiving the first late payment fee. This can protect a student's credit score from initial missteps.
• Credit Education: Many issuers provide educational resources tailored to students, helping them understand credit scores, reports and the importance of good credit management practices.

General (Regular) Credit Cards and Building Credit

• Continuous Credit Building: For those with established credit, regular credit cards can help improve or maintain credit scores through responsible usage.
• Higher Limits Can Help Utilization: With often higher credit limits than student cards, maintaining a low balance on regular cards can result in a favorable credit utilization rate, benefiting the credit score.
• Diverse Card Offerings: The broader range of regular credit cards means consumers can diversify their credit types over time. For example, they might start with a basic card and later obtain a retail or rewards card, further enriching their credit profile.
• Potential for Penalties: While regular cards can offer larger credit limits and more perks, they can also have stricter penalties. Late payments, high balances and other negative behaviors can significantly impact one's credit score.

Both student and general credit cards play pivotal roles in credit building. While student cards offer a more guided and forgiving introduction to credit, general credit cards present expanded opportunities and increased responsibilities in the journey of credit management.

Before deciding if you should get a student credit card or a regular credit card, look at the pros and cons of both cards.

If you have limited or no credit history and little income, you stand a better chance of qualifying for a student credit card. However, if you already have good creditworthiness, you might benefit more by getting a regular credit card that offers high category-based cash back or rewards. Some regular credit cards for average credit also offer high category-based rewards.

Looking at the student vs. secured credit cards comparison makes sense if you don’t qualify for the former. Secured cards require that you pay a security deposit, which also functions as your credit limit.

Other than the security deposit, secured cards function like regular credit cards. Your card issuer assigns a credit limit to your card, and you need to make at least minimum monthly payments toward the purchases you make using your card. When you roll balances from one billing cycle to the next, you must pay interest charges. Issuers of such cards help you build credit by reporting your payments to one or more credit bureaus.

Now that you’ve gone through this student credit card vs. regular card comparison, select a card based on your creditworthiness and income. When narrowing down on a card that works best for you, pay attention to aspects such as rewards, APR, fees and additional perks. No matter which type of credit card you get, use it responsibly to build a positive credit history.

This section answers other commonly asked questions about the differences between regular credit cards and student credit cards.