Best Credit Cards for Students of September 2021


A student credit card allows you to borrow money from a line of credit to make a purchase, then pay back what you borrowed later. Your card will have a credit limit, which is the most that the bank will let you borrow at any one time.

For example, imagine you have a student credit card with a $500 credit limit. You spend $100 on textbooks, and $50 on other school supplies. That leaves you with $350 of available credit.

After that month’s billing cycle ends, the card company will issue your monthly statement. This will show all of the purchases you made during the last statement cycle, as well as your ending balance. It will also include your minimum required payment and your bill’s due date.

Your minimum required payment is the minimum amount you need to pay to the credit card company to avoid late fees. It’s typically a small percentage of your balance (2% to 3%) or a flat fee — usually $25 or $35 — whichever is higher. As long as you make at least the minimum payment, your account will remain in good standing.

However, if you only make your minimum payment, you’ll be charged interest on your purchases. Interest fees are based on your credit card’s APR, which you can find in your card’s terms and conditions. To avoid being charged interest fees, be sure to pay your entire statement balance before your due date.

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You can learn more about how a credit card works in our beginner’s guide to credit cards.

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