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What Happens to Your Student Credit Card When You Graduate?

5 min read

Last Updated: March 11, 2025

Table of contents

Key Takeaways

A Discover® student card will have the same terms, conditions, and account status when you graduate.
There are advantages to keeping your student card after graduation, even if you plan to get a new one.
Learn what information you’ll need to inform your card issuer of after you’ve graduated and how to retain rewards you gained on your student card.

Graduation is a big step! You’re leaving college behind to enter the real world. Does that mean you’ll leave behind your student credit card as well? You may be able to keep some of the benefits you have with your student card after you graduate. A Discover^® student card will have the same terms, conditions, and account status when you graduate. You’ll even keep the same Cashback Bonus^® program that you had while you were a student.

Options for student credit cards after graduation

After you graduate, several things can happen to your student credit card. Sometimes, you can continue using your student card the same way as before. Other credit card issuers may offer to change your student card into a regular credit card.

Often, this new card may have improved features and might increase your spending limit. For example, if you get a new job and earn more income, the card issuer may increase your credit limit. You can also choose to get a different credit card that better suits your updated financial needs. It's important to keep an eye on any letters or emails from the company about your card when you finish school.

Keeping your student credit card open after graduation

Though student cards are made for your college years, there's no strict rule saying you must close your student credit card after graduating. Many credit card companies let you keep your student card open for as long as you want.

Keeping your student credit card open can have benefits. It can help build your credit history, especially if it's your oldest credit account. Your length of credit history accounts for about 15% of your credit score. It may also be simpler since you don't have to apply for a new card.

However, there may be some drawbacks. Student cards often have a lower credit limit and fewer rewards compared to other cards. Also, if you have an older student card, it might not fit your current financial situation as well as a new card or card upgrade. So, it's good to weigh these pros and cons when deciding whether to keep your student card after graduation.

Cancelling your student credit card after graduation

Canceling a student credit card after graduation is certainly an option, but it's important to remember that closing any credit card can affect your credit score. Closing a card reduces your overall available credit, which can increase your credit utilization ratio—a key factor in credit scoring. Also, if your student card is your oldest credit account, closing it could shorten your credit history on your credit report, potentially lowering your score.

However, there are benefits to closing a card, especially if it has high fees or if you're finding it hard to manage multiple credit accounts responsibly. Simplifying your finances and reducing the temptation to overspend can be good reasons to close a card. The decision should be based on your personal financial situation and goals.

Upgrading your student credit card after graduation

Have you considered upgrading your credit card after graduation? Some card issuers allow you to automatically upgrade your student credit card to a similar card after graduating, and you may still have the same benefits that you had with your student credit card.

Additionally, this upgrade often comes with a range of added benefits, such as a higher credit limit, better rewards programs, and additional perks, which may be more aligned with your financial needs after graduation. Keeping the same account for a long time helps build a good credit history, which is good for your credit score.

Be on the lookout for potential disadvantages. Standard credit cards may come with higher interest rates and annual fees compared to student cards. Also, the eligibility for an upgrade typically depends on a good credit history and a stable income, which might be challenging for recent graduates.

What happens to your Discover student credit card after graduation?

Your Discover student credit card will not undergo any changes after graduating from college. The account's terms, conditions, and features remain consistent, maintaining the same status and benefits you received as a student.

There is no automatic transition or changes to your credit card simply because you have completed your education. 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

Do student credit cards become obsolete after graduation?

If you believe canceling your student credit card is necessary to apply for a new credit card, it's worth exploring other options first. Canceling a credit card can potentially affect your credit score negatively. For example, if your student card is the first credit card you obtained, canceling it could reduce your credit history. Since the length of your credit history affects your credit score, this could decrease your score. Rather than canceling your student card, think about how you can make use of your credit cards after you graduate.

How your student card can graduate with you

Student cards are usually issued with lower credit limits, which reflect the higher risk students with low income can pose to credit card issuers.

After you graduate, your credit card provider may ask to update your information. This includes:

Graduation date
Personal income
Employment status

Updating this information allows your credit card issuer to consider you for a credit line increase, especially if your post-graduation job gives you a higher income. You can often do this online or within your mobile app.

The bottom line

An important thing to remember about building your credit after graduation is to pay your bills on time and in full and to avoid using too much of your available credit. In other words, be as smart with your budgeting as you were with your college studies, and your finances and future self will thank you.

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