Navigating the financial landscape as an international student can be challenging, especially when it comes to building credit in a new country. A student credit card can be a valuable tool to help manage expenses, build credit history, and make life abroad more comfortable.
This guide will explore the best student credit cards for international students, their benefits, and how to choose the right one for your needs.
Why Do International Students Need a Credit Card?
- Building Credit History: Establishing a credit history in your new country is essential for future financial endeavors, such as renting an apartment or applying for loans.
- Managing Expenses: A credit card provides a convenient way to manage daily expenses and emergencies.
- Access to Rewards and Benefits: Many student credit cards offer rewards programs, travel benefits, and other perks.
Factors to Consider When Choosing a Student Credit Card
- Eligibility Requirements: Check if the card is available to international students without a U.S. Social Security number (SSN).
- Annual Fees: Opt for cards with no annual fees to minimize costs.
- Interest Rates: Look for cards with low-interest rates or introductory 0% APR offers.
- Rewards and Benefits: Consider cards that offer rewards like cash back, points, or travel benefits.
- Credit Limit: Ensure the credit limit is sufficient for your needs.
- Foreign Transaction Fees: Choose cards with no foreign transaction fees to avoid extra costs when traveling.
Top Student Credit Cards for International Students
1. Deserve® EDU Mastercard for Students
Benefits:
- No SSN required for international students.
- No annual fee.
- 1% unlimited cash back on all purchases.
- No foreign transaction fees.
- Amazon Prime Student subscription reimbursement (up to $59).
Why It’s Great: Deserve® EDU Mastercard is designed specifically for international students, making it accessible without an SSN. The card offers solid rewards and benefits with no annual or foreign transaction fees.
2. Capital One® Journey Student Rewards
Benefits:
- No annual fee.
- 1% cash back on all purchases, with the potential to earn 1.25% if you pay on time.
- No foreign transaction fees.
- Access to CreditWise for monitoring your credit score.
Why It’s Great: The Capital One® Journey Student Rewards card encourages responsible credit use with cash back incentives and provides tools to help you build and monitor your credit.
3. Discover it® Student Cash Back
Benefits:
- No annual fee.
- 5% cash back on rotating categories each quarter (up to the quarterly maximum) when you activate.
- 1% unlimited cash back on all other purchases.
- No foreign transaction fees.
- Dollar-for-dollar match of all cash back earned in the first year.
Why It’s Great: The Discover it® Student Cash Back card offers generous cash back rewards and an impressive first-year match program, making it a valuable option for students who spend strategically.
4. Bank of America® Cash Rewards Credit Card for Students
Benefits:
- No annual fee.
- 3% cash back on a category of your choice (gas, online shopping, dining, travel, drug stores, or home improvement/furnishings).
- 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases).
- 1% cash back on all other purchases.
- Access to your FICO® Score for free.
Why It’s Great: This card allows you to customize your cash back category, making it versatile for different spending habits. It also offers a straightforward rewards program and free access to your FICO® Score.
5. Citi Rewards+℠ Student Card
Benefits:
- No annual fee.
- 2X ThankYou® Points at supermarkets and gas stations (up to $6,000 per year).
- 1X ThankYou® Point on all other purchases.
- Round-up feature: every purchase rounds up to the nearest 10 points.
- No foreign transaction fees.
Why It’s Great: The Citi Rewards+℠ Student Card is unique with its round-up feature, ensuring you earn more points on every purchase. It’s particularly beneficial for everyday spending at supermarkets and gas stations.
How to Apply for a Student Credit Card as an International Student
1. Gather Necessary Documents
- Passport: Your primary identification document.
- Student Visa: Proof of your legal status in the country.
- Proof of Enrollment: Documents such as your student ID or enrollment letter.
- Proof of Address: Utility bills or a lease agreement.
- Bank Account Information: Details of your existing bank account in the new country.
2. Apply Online or In-Person
Most credit card applications can be completed online. However, you may need to visit a branch in person for verification. Make sure to provide accurate and complete information to avoid delays.
3. Consider a Cosigner
If you have no credit history, some issuers might require a cosigner. A cosigner with a good credit history can significantly improve your chances of approval.
4. Use Your Credit Card Responsibly
Once approved, it’s crucial to use your credit card responsibly to build a positive credit history:
- Pay on Time: Always pay at least the minimum payment by the due date.
- Keep Balances Low: Aim to keep your credit card balance below 30% of your credit limit.
- Monitor Your Account: Regularly check your account for unauthorized charges and track your spending.
Conclusion
Choosing the right student credit card can make a significant difference in managing your finances and building your credit history as an international student. Consider the options listed above, assess your needs, and apply for the card that best fits your situation. Remember, using your credit card responsibly is key to establishing a solid financial foundation in your new country.
Source: Collegesintheuk.com