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When it comes to credit cards, your options can feel almost too plentiful. Cash-back, travel rewards, and business options about, with great sign-up bonuses available on many of them. But for a student or beginner with little to no credit, choices often dwindle down to just a handful of options.
The good news is that some banks have taken notice and started tailoring some of their cards to better suit those who are just getting started with credit. Below, we'll walk you through some of the best options.
Before applying for a credit card, it's important to understand the two major credit card types that are offered.
Read more: How to build credit with a credit card
Secured vs. unsecured credit cards
With a secured card, your credit line is "secured" by a refundable security deposit that you pay to the bank upfront. Your security deposit is saved for you in an account, which may or may not earn interest, depending on the bank and the particular card offer.
Your credit limit will directly depend on the amount of your deposit. Since your collateral essentially reduces the credit risk to the lender, it's much easier to qualify for a secured credit card.
An unsecured card means that the credit line is not secured with collateral. Instead, the lender will provide a credit limit for you. Because of the assumed risk to the lender, it's a bit more challenging to qualify for unsecured cards as a beginner without a lot of credit history. However, an issuer may approve you for a small credit limit, and once you're approved for one card, generally other card offers follow.
Keep reading for the best credit cards for students, starting with unsecured credit cards and ending with some secured card picks.
Discover it® Student chrome
Card type: Unsecured
This card encourages students to keep their grades up and work hard in school by offering a $20 statement credit each year for 5 years for having a grade point average of 3.0 or higher. That's a total of $100 you can potentially earn by doing well in school.
The Discover it Chrome also offers an unlimited cash back match the first year. That means that for every dollar you earn by spending on the card, you get a dollar matched at the end of the year during the first year of opening the card.
There's currently a 0% APR on purchases for the first 6 months of opening your card (then a variable rate of 15.24% to 24.24%).
Capital One Platinum Credit Card
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Card type: Unsecured
This card offers a credit line increase if you make the first five monthly payments on time. You can choose your monthly due date, which is a great feature for those without the standard payroll schedule.
You also get unlimited access to Capital One's CreditWise service, which provides tools for credit monitoring and checking your credit score.
Deserve Edu Mastercard for Students
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Card type: Unsecured
This card gives you 1% cash back on all purchases and provides a free one-year subscription to Amazon Prime Student. Cardholders also enjoy other benefits such as car rental insurance, no foreign transaction fees during travel, and roadside assistance options.
Journey Student Rewards from Capital One
Card type: Unsecured
Similar to the Capital One Platinum credit card, this card lets you increase your credit line when you make the first five monthly payments on time. You also have access to the CreditWise feature for regular credit monitoring.
What's different about this card is that you can earn more cash back with on-time payments. The Journey card normally offers 1% back on purchases, but you can earn 1.25% cash back each month you pay on time.
Discover it® Secured
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Card type: Secured
Since this is a secured credit card, you'll pay a refundable security deposit, which will also be your credit line. You have the choice of how much you want to pay for your security deposit.
Earn 2% cash back on gas stations and restaurants up to $1,000 each quarter. Discover will also match your cash back at the end of your first year, and it provides your FICO score on your monthly statements for easy monitoring.
Capital One Secured Mastercard
Card type: Secured
You have the choice of a security deposit of $49, $99, or $200. With the initial security deposit, you'll get a $200 credit limit. The more you deposit before your account opens, the higher your credit limit.
Just like with the other Capital One credit cards mentioned here, you can increase your credit limit if you make the first five monthly payments on time. You also get to choose your monthly due date.
Citi Secured
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Card type: Secured
This card requires a minimum security deposit of $200 and a maximum of $2,500. Your security deposit will be your credit limit.
The card provides protection against unauthorized purchases, meaning it won't be your responsibility to pay if you didn't make the purchase.
Read more: My credit history vanished when I moved to the US, so I took 4 steps to start building up my credit all over again
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