It’s that time of the year again: College classes begin  in just a few months. As so many of you begin (or return) to school, there is much to think about. Friends, studying, internships, future careers, and maybe even studying abroad. Looking back, there really is no time like it!

Looking back to my college years, I can say with confidence, that I didn’t know what a credit score was. I never thought about building credit, or how it might help me in the future. 

The thing is, I wish I had known more about credit. It certainly would have made things easier in the future, and saved me plenty of money, not to mention, made it easier to qualify for that first apartment.

For that reason, I’d like to share a very simple tool, which can help you build credit, as a student, starting today: Student credit cards. These cards allow you to make small purchases, as a student, even if you don’t have a job/income, or a cosigner. Some of these cards allow you to earn cashback and rewards points, so that you can enjoy a bit of extra spending money (that’s never a bad thing, right)?

Let’s take a look at a few of our favorite cards for college students. With this information, you can decide which one makes the most sense for you. 

#1: Discover It for Students

To us, this is hands-down, the best student credit card out there. Why do we like it so much? 

For starters, you won’t pay any annual fee, so, building credit will not cost you extra money. Also, you can receive 5% cashback in various categories, such as gas, or food and groceries (these categories rotate on a quarterly basis, i.e. every three months). Having been “starving students” ourselves, we know how valuable these extra savings can be. 

You’ll also receive 1% cashback on any type of purchase you make. As if all this weren’t enough, at the end of your first year with this card, Discover will match the amount of cashback dollars you’ve earned (meaning, you’ll double your rewards). These sorts of benefits are quite rare for student credit cards. 

Another really great aspect of Discover is that they offer free FICO credit scores, with an Experian credit report. This service is available regardless of whether you are a Discover customer or not. Given the importance of monitoring your credit, and the fact that you’ll be reminded of this each time you check your Discover statement, this is a useful feature, to keep in mind.

There are a few (small) downsides to the Discover card. For one, Discover isn’t as widely accepted as MasterCard or Visa, so, depending on where you are shopping, you might not be able to use the card. This is especially true if you are traveling abroad. However, overall, this card is a great option, for students who are new to credit, and are hoping to build a lifetime of positive credit behavior. 

#2: Journey Student Rewards from Capital One

This is another good card for students. Just as with Discover, this card does not have any annual fee, so building credit won’t cost you anything. What’s more, there are also no foreign transaction fees (so, if you end up studying abroad, you won’t end up spending extra). 

You will earn 1% cashback on all purchases, and, when you pay on time, you can receive additional cashback as well. If you pay on time for the first five months, and you might also be offered a higher credit line.

Capital One also offers the CreditWise app, to check your credit score.Capital One is providing you with a TranUnion report and Vantage credit score. Unlike FICO, Vantage is not used by many lenders, so this is of somewhat limited value.  

Why don’t I like Capital One as much as Discover? Simply put, Discover offers more rewards, which is nice to have. However, Capital One is still a good option. It’s hard to go wrong with either of these cards. 

How To Use A Student Credit Card (At Least Starting Out)

With credit cards, it is very important that you build strong habits from the beginning. Doing so will lay the foundation for a lifetime of better finances.

When you start out, we suggest that you make no more than one small purchase on the card each month. Starting out, your limit on the card is no more than a few hundred dollars. Therefore, you should try to spend less than $20. 

Then, make sure that you pay off this card. This helps ensure that you don’t end up spending additional money on interest payments. 

As you build strong credit habits, you can start to spend a bit more on the card, and use it more often. However, early on, it is important that you stay conservative in what and how you spend.              

The Bottom Line

College is a time to learn, grow, form lifelong friendships, and begin to define the rest of your life. Along those lines, there is no better time to put yourself on the path to excellent finances, an important part of which is an excellent great score. 

Perhaps best of all, signing up for one of these cards is easy, and won’t cost you a dime (in fact, you can earn money, through cashback and rewards points). Just make sure to pay off your balance every month, and you will be all set. Good luck!