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Student Credit Cards Myths and Misconceptions

Published December 17, 2024
4 min read
Getting a credit card

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Key Points:

  1. Student credit cards work just like regular credit cards.

  2. Credit cards for students often come with rewards on your purchases.

  3. You can build your credit history if you use your student credit card responsibly.

You’re in college now and thinking about your future. What career do you want? What city will you live in? How will you pay for it all?

When you start by debunking student credit card myths, you’ll have the right information to find and apply for the best student credit card for you. So, if you’re thinking about your financial future now, it’s time to address some student credit card myths that might be holding you back.

Myth #1: Student credit cards aren't regular credit cards

In fact, student credit cards are regular cards. But it’s how they’re different that’s important for college students.

  • You usually don’t need an established credit history or credit score
  • Approval is possible with part-time employment income, and in some cases no income
  • Lower credit limits help teens eighteen or older build credit history responsibly and with less risk
  • Introductory APRs (annual percentage rates) help you save money during a specified time frame

After you graduate from college, some student credit cards won’t have any changes. This means the account's terms, conditions, and features remain consistent. For example, if you have the Discover it® Student Chrome credit card, you’ll continue to earn 2% Cashback Bonus® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically.1

Myth #2: You must be 21 to get a credit card

Good news! When you’re a student, you can get a student credit card starting at age eighteen. This is one of those myths about credit cards that could stop you from starting your credit journey early.

Note that different credit card companies have their own qualifications for student card approval. But, when you apply, you’ll need to provide your income to demonstrate your ability to make credit card payments. Discover factors the unique life stage of students into the card approval process. Because you may not have a credit history or have a limited student income, your approved card might have a lower credit limit than a regular card for someone with a full-time job and a good credit history.

Myth #3: You can't earn credit card rewards as a student

Actually, a great benefit of some student credit cards is that you can actually earn cash back when you make purchases. With the Discover it® Student Cash Back card, for instance, students earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate. Discover also offers Cashback Match, where we’ll automatically match all the cash back you’ve earned at the end of your first year. There is no limit to how much we’ll match. That means you could turn $50 cash back into $100 or $100 cash back into $200.2

Earn top-tier rewards and build your credit history3 with a Discover student credit card.

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Myth #4: Only paying the minimum card payment can hurt your credit

Will it hurt your credit report to only pay the minimum due? Of course, it’s always better to make a minimum payment rather than a late or missed payment. However, if you carry those debts for too long and across all your cards it can increase your credit utilization ratio (how much available credit you’re using).

Your credit utilization ratio will include all your credit lines, including when you have a student loan debt, an auto loan, a personal loan, and any other credit cards you might have.

Plus, the longer you carry the debt, the longer you’re paying interest.

If you make purchases on your credit card that you can afford to pay off at the end of the month, you can quickly build good credit as a student while avoiding credit card debt.

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Myth #5: Being late on one payment won't hurt

This is one of the hardest myths. Your payment history makes up a whopping 35% of your credit score, and other penalties make it important that you pay your bill on time. But believing that one missed payment won’t hurt your credit score is a credit myth you can’t afford to believe.

In fact, missing just one payment can really hold you back from achieving new credit in the future because your credit history will show you might be a credit risk. Plus, there are other penalties to consider:

  • A credit card issuer might charge a late fee
  • Your student credit card purchase interest rate might increase
  • Missed payments recorded on your credit report could remain there for up to seven years

Did you know?

You can use the Discover credit card interest calculator to see what interest you'll owe on any credit card balance and how increasing your monthly payments may help you pay your debt down sooner.

Now that you know some of the common credit card myths, you also know how to build a positive credit history with a regular credit card built just for students. Building a good credit score with a student credit card is a smart way to start your financial footprint.

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  1. 2% Cash Back at gas and restaurants: You earn a full 2% Cashback Bonus® on your first $1000 in combined purchases at Gas Stations (stand-alone), and Restaurants each calendar quarter. Calendar quarters begin January 1, April 1, July 1, and October 1. Purchases at Gas Stations and Restaurants over the quarterly cap, and all other purchases, earn 1% cash back. Gas Station purchases include those made at merchants classified as places that sell automotive gasoline that can be bought at the pump or inside the station, and some public electric vehicle charging stations. Gas Stations affiliated with supermarkets, supercenters, and wholesale clubs may not be eligible. Restaurant purchases include those made at merchants classified as full-service restaurants, cafes, cafeterias, fast-food locations, and restaurant delivery services. Purchases must be made with merchants in the U.S. To qualify for 2%, the purchase transaction date must be before or on the last day of the offer or promotion. For online purchases, the transaction date from the merchant may be the date when the item ships. Rewards are added to your account within two billing periods. Even if a purchase appears to fit in a 2% category, the merchant may not have a merchant category code (MCC) in that category. Merchants and payment processors are assigned an MCC based on their typical products and services. Discover Card does not assign MCCs to merchants. Certain third-party payment accounts and digital wallet transactions may not earn 2% if the technology does not provide sufficient transaction details or a qualifying MCC. Learn more at Discover.com/digitalwallets. See Cashback Bonus Program Terms and Conditions for more information.

  2. Cashback Match: We’ll match all the cash back you’ve earned on your credit card from the day your new account is approved through your first 12 consecutive billing periods or 365 days, whichever is longer, and add it to your rewards account within two billing periods. You earn cash back only when they’re processed, which may be after the transaction date. We will not match: rewards that are processed after your match period ends; statement credits; rewards transfers from Discover checking or other deposit accounts; or rewards for accounts that are closed. This offer may not be available in the future and is exclusively for new cardmembers. No purchase minimums.

  3. Build credit with responsible use(Student): Discover reports your credit history to the three major credit bureaus so it can help build your credit if used responsibly. Late payments, delinquencies or other derogatory activity with your credit card accounts and loans may adversely impact your ability to build credit.

  • Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.