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What Counts as Income on a Student Credit Card Application? contents
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What Counts as Income on a Student Credit Card Application?

Last Updated: October 3, 2024
7 min read
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Key Points:

  1. A student credit card has terms and conditions just for college students and may have lower income requirements than regular credit cards.

  2. Students may qualify for a student credit card with income that doesn’t come from a job, such as allowances or certain grants and scholarships.

  3. Some student borrowers can use the income of a spouse or partner to qualify for a credit card.

Whether you’re a full-time student living on campus or you’re staying home to work and take classes part-time, you might consider the benefits of applying for a student credit card to help with expenses and in building credit.

 

But you may wonder if you earn enough income to qualify for a student credit card. After all, some credit card issuers require proof of income before approving your application. The good news is that there are credit cards for students with income that doesn’t need to come from a job. And, in some cases, you can qualify for a student credit card even with limited income.

It’s important to understand what counts as income if you plan to apply for a credit card for students. You might be surprised at what is—and isn’t—included in your total. We’ve outlined six sources of income you can include on a student credit card application—and, just as critically, three sources you can’t.

What is a student credit card?

Student credit cards have terms and conditions to help college students build a credit history in a low-risk environment. This includes a lower credit limit, intro APR promotions, balance transfer offers, and access to credit scores. Income requirements for student credit cards are lower than those for regular credit cards.

A rewards student credit card, such as Discover it® Student Cash Back Card or Discover it® Chrome for Students, can help you earn cash back on everyday purchases.

Why is income required on a student credit card application?

There are a few reasons why student credit card applications require information about your income, even if you don’t have a job. Your income acts as an indicator of your ability to pay your debts on time, which impacts the types of credit cards and interest rates you may be eligible for. Because of income, one student may have a different credit limit than the next, even if they are the same age and go to the same school.

Sources of income you can use on a student credit card application

Student credit cards are designed for college students with little to no credit history. They’re also tailored to suit unique financial situations—even students with no income. Since they typically provide lower credit limits, student credit cards may allow more flexibility in their applicant qualifications. Sure, showing income from any job is helpful when applying for a student credit card, but a student can use other acceptable sources of income to qualify.

Here are some ideas for what to put for income on credit card application. You can include each source of income in your application to increase your chances of approval. The following list describes the income sources you can use on a student credit card application, but rules may vary by age.

If you're eighteen or older and work part-time or full-time, you can count earnings from your job—including tips and bonuses—as income on a student credit card application. You can also include pay from freelance work and other irregular sources of income. If asked to verify your information, you'll need documentation like a tax return, paystub, or letter from your employer to prove your earnings to the credit card company.

Have you heard of the CARD Act of 2009? Part of this act says borrowers aged eighteen to twenty must prove they can independently pay back their debt to get approved for a student card without a cosigner. This means a student can't use their parent's annual income. And, in fact, many major credit card companies no longer allow cosigners.

 

But there’s good news. All student applicants eighteen or older can include a monthly student allowance or deposit of funds from a parent as income. But you'll need to make sure that any financial support you receive goes directly into a bank account in your name to qualify as personal income. If asked, you’ll need to provide bank statements that reflect the monthly deposits.

The support of a partner can make a big difference when putting yourself through school. And if you’re twenty-one or older, you can include spouse or partner income (along with your own) to qualify for a student credit card. Unfortunately, if you’re under twenty-one you can only report your own independent income or assets. The exception is for borrowers in community property states where spouses (and some domestic partners) share income by law.

The portion of your federal or private student loan paid directly to the school for tuition won’t qualify as income.

 

However, depending on the credit card issuer, the remaining amount after paying your tuition may count. Still, due to the possible drawbacks of using one source of debt to pay for another (your credit card debt), even the remaining amounts may not qualify as income on some credit card applications.

Claiming grants and scholarships as income is generally allowed. Grants and scholarships don’t typically require repayment, so the amount after paying your college tuition is personal, accessible income.

Credit card companies don’t require applicants twenty-one and older to have a cosigner. Adults younger than twenty-one who prove they can independently repay their debt typically won’t need a cosigner either. But if borrowers eighteen to twenty years old can't provide enough proof of income, a cosigner's income may count on a student credit card application. But remember, fewer and fewer card issuers allow cosigners.

What doesn’t count as a source of income on a student credit card application?

It’s equally important to know what doesn’t count as income on your student credit card application. Here are some examples of items that you can’t include as sources of income on your application for a student credit card:

  • Debts you owe, such as student loans that you’re required to repay
  • Income you can’t legally access, such as garnished wages
  • Income that’s fraudulent or you can’t verify with documentation
  • While a savings account is beneficial, some credit card companies might not consider it as regular income

It's important to check the specific income requirement of each credit card issuer, because policies may vary. In many cases, card issuers are looking for a stable and regular source of income to assess an applicant's ability to repay credit card balances.

Did you know?

If you have questions about what qualifies as income on a Discover credit card application, customer service is available any time, day or night.1

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Can you apply for a Discover student card with no income?

Like all credit card issuers, Discover accepts amounts directly deposited to student borrowers as income. Discover also accepts income that’s regularly available to you from another person if you're twenty-one or older (or eighteen or older in certain states). Additionally, there is no credit score required to apply for Discover Student credit cards.2

Discover offers two credit cards for students, both of which are rewards credit cards that can earn you cash back on your purchases. The Discover it® Student Cash Back card lets you earn 5% cash back on everyday purchases at different places you shop each quarter, up to the quarterly maximum when you activate. And with the Discover it® Student Chrome card, you can earn 2% Cashback Bonus® at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.3

Do income requirements change for your student credit card after you graduate?

After you qualify for a student credit card, you’ll be on your way to establishing credit, earning cash rewards, and more. But what happens when you graduate? Some credit card issuers will instantly convert your student credit card to a regular credit card, with no additional income requests or actions taken by you. For example, when you graduate, Discover student credit cards automatically get reclassified as regular credit cards with the same bonus structure.

With responsible use, a student credit card is a useful tool for building a good credit history that will serve you well after you earn your degree. Once you learn the types of income that can help you qualify, you can choose the best student credit card for your needs and apply with confidence.

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