The Ultimate Guide to Credit Cards
Tuesday, October 20, 2020
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2020's Best Student Credit Cards

Below are our staff picks for 2020's best credit cards for students. These cards offer competitive APR's and numerous perks geared toward those enrolled in higher education.

Average APR
17.49%
Average Annual Fee
$0.00
Rate Trend
-0.09%
since last month
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The credit card offers that appear on this site are from credit card companies from which CardRates.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CardRates.com does not include all credit card companies or all available credit card offers.

Review Breakdown: Student Cards

The credit card options for college students looking to build credit are sometimes limited, especially once you eliminate predatory fee-harvesting cards from the mix. That's why our staff recommends just a small handful of cards to students, summarized in the table below. if you see a card that appeals to you, simply click the card name to visit its official issuer website.

Here are 2020's best student credit cards:

Best Student Credit Cards
RankCard NameFeatureAnnual FeeExpert Rating
1Journey® Student Rewards from Capital One®Student$0 ★★★★★ 4.8
2Bank of America® Cash Rewards Credit Card for Students2% cash back$0 ★★★★★ 4.8
3Bank of America® Travel Rewards Credit Card for StudentsStudent$0 ★★★★★ 4.7
4Wells Fargo Cash Back College℠ CardStudent$0 ★★★★★ 4.7

15 FAQs About Student Credit Cards

Brittney Mayer
By: Brittney Mayer
Credit Analyst
Updated:
15 FAQs About Student Credit Cards
CardRates.com Guide: Student Cards

The best student credit cards may not earn you praise from your professor — but the right plastic in your wallet can mean as much to your future as any grade you earn in a class.

You’ll work for years to earn the diploma that gets you in the front door of your dream job. But living in the real world means building a good record of personal finance management that helps you make the most of your money. will expect more than a fancy piece of paper from recent graduates. Without a credit history, you essentially have nothing but a potential paycheck with which to sell yourself to lenders.

And the benefit of a good credit score isn’t just about buying things. Your credit history can determine your eligibility for renting an apartment or getting the car you need to shuttle around to job interviews.

You can get ahead of your classmates early by choosing among the best student credit cards on our list.

1. What is a Student Credit Card?

A student credit card works the same as any traditional credit card does. You can make purchases, pay bills, transfer balances, accept a cash advance, and shop online using your card.

What separates a student credit card from a traditional credit card is that — you guessed it — you must be a student to qualify. That means you must:

  • Be a U.S. citizen or permanent resident.
  • Be 18 or older at the time of your application.
  • If you are under 21, you must show that you earn sufficient income (such as from a part-time job, scholarships, or student grants) to meet the card issuer’s requirements.
  • Prove that you’re enrolled in school. Each card issuer will set its own definition of what “student” means. For example, Discover requires that you are enrolled in a “two- or four-year college or university,” whereas the Journey® Student Rewards from Capital One® doesn’t require proof of college enrollment—you just have to meet the credit and income requirements.

Student credit cards typically have lower credit limits because most students have limited income. The credit card company may consider you for periodic credit limit increases as you prove their financial responsibility over time by making on-time payments and keeping your balance low relative to its limit.

You will likely find other perks with your student credit card that you may not find through traditional cards. These can include cellphone insurance, a statement credit for subscribing to certain streaming services, and a statement credit for maintaining a certain GPA.

Not every student credit card will offer these benefits. Check your credit card disclosure document before applying to see what perks you will get.

2. How Does a Student Credit Card Work?

From a purchasing standpoint, a student credit card and a traditional unsecured credit card are the same.

Your student credit card can make purchases, make payments, or do anything you need it to — as long as you have the available credit to cover the cost of your transaction. You may experience a few differences when applying for your student credit card, though, depending on which card you decide to go with.

Since banks design these cards for student use, the institution that issues your card will likely want you to prove that you are enrolled in a qualifying educational program.

Each bank has its own set of rules that define student applicants. You may meet the standard if you’re enrolled at a trade school, community college, or four-year university. Whichever the case, you will likely have to provide proof that you’re actively enrolled.

This could mean faxing a transcript, emailing a copy of a recent schedule, or forwarding a photo of your student identification card to the credit card company. Whichever method your credit card issuer requires, the process is fairly straightforward.

An exception to this rule is the Journey® Student Rewards from Capital One®. Capital One does not require proof of enrollment to qualify for this card as of the date this piece was published.

Once the bank approves your application and you activate the student credit card, the issuer may require you to periodically resubmit documentation to prove that you are still a student.

The banks do this because they do not want cardholders to continue with a student-centered credit card after graduation. You will likely find better rates and perks with a more traditional unsecured credit card as long as you have maintained your student credit card account in good standing.

But even though your student credit card will work just like any other credit card, you will find that each card has slightly different features and fees. When deciding which card you want to add to your financial portfolio, check out the Schumer Box on each credit card disclosure document.

This series of boxes will highlight important card information — some of it in a bold, larger font — that includes:

  • Interest rate (or APR): This is the percentage of your balance that you’ll pay in annually-compounded interest. Depending on which card you choose, this number can vary wildly — from about as low as 9.99% to as high as 29.99%. The general rule of thumb is to always look for the lowest rate to avoid overpaying for finance charges.
  • Various fees: The Schumer Box will show you whether your card charges an annual fee, monthly maintenance fee, or other membership charges. The best student credit cards won’t charge an annual fee, but nearly all will have some sort of fee for a cash advance or balance transfer. This will also lay out the rules for late payments.
  • Rewards: Everyone likes rewards, and many student credit cards offer potential cash back or points rewards for everyday purchases you make with your card. Your credit card disclosure statement will highlight any such perk you get with your card. For example, the Chase Freedom Student credit card gives you cash back on all purchases.

A student credit card is intended as a starter kit for building credit — but you can still find great deals and benefits with the best student credit cards. This can include cash back, free cellphone insurance, and bonuses for maintaining good grades.

You won’t always find the same perks with the cards you qualify for after graduation. Take advantage of these things while you can.

3. How Do I Get a Student Credit Card?

As with any other credit card, you cannot qualify unless you apply. The same goes for a student credit card, which you can easily apply for online in a matter of minutes.

All of the cards on our list above provide easy online applications that allow you to submit your personal information and receive a near-instant credit decision from the bank.

In some cases, you may be able to pre-qualify for a card before you officially apply. This is especially handy if you’ve applied for other loans or credit cards recently.

Every time you apply for a credit card or other loan, the lender conducts a credit check that leaves a hard inquiry on your credit report. This inquiry shows that you applied for some form of credit. It will live on your credit history for at least two years.

Inquiries by themselves are harmless. But when you start to accumulate several (usually more than three) in a short time frame, lenders may see you as desperate and flag your account. It could also cause slight, temporary damage to your credit score.

When you prequalify, the lender will place a soft inquiry on your credit profile. This gives the lender access to a shortened version of your credit profile and will not cause damage to your credit score.

Prequalifying does not guarantee that you will receive the credit card when you officially apply, but it is a good indicator of success. Once you take the leap and submit an application, the lender will conduct a full credit check (including the hard inquiry), but the prequalification will give you the peace of mind that you are not taking on an inquiry unnecessarily.

The application will require most of your standard identifying information, such as your name, Social Security number, address, birth date, and contact information.

Since you are applying for a student credit card, you may also have to submit proof that you are currently enrolled at a qualifying institution. This may include a copy of your transcripts, recent semester’s grades, current semester schedule, or a copy of your student identification card.

Some credit card issuers may not ask for this information until after they approve your application. Others may not require it at all.

Once you apply and are approved — which typically takes a matter of seconds — the issuer will send your new credit card to you through the mail. This typically takes between seven and 10 business days to arrive. Once you receive your card, you can activate it over the phone or online and begin using it immediately.

Issuer Shipping Times

Some card issuers may permit access to your new line of credit shortly after they approve your application. This typically happens through a temporary credit card number that you can access through the bank’s website or mobile application.

Although this is a rare perk for student credit cards, if you receive instant access, you can use your temporary credit card number to make purchases online, over the phone, or through any merchant that accepts card-not-present transactions.

4. Who Qualifies for a Student Credit Card?

You must meet two sets of qualifications to get a student credit card. The first is the credit qualification and the other is the student qualification. Every credit card company has different standards for deciding whether you meet the necessary criteria in either case.

No credit card company publishes its minimum credit score requirements for credit card application approval. Each credit card has a market it serves.

For example, you may find one group of credit cards for consumers who have bad credit. Another set of cards may target applicants who have good credit and others may only consider applications from consumers who have excellent credit.

Student credit cards tend to fall in the middle of that spectrum. That’s because banks expect students to have little or no credit, as well as limited income. To that end, you do not need very good credit to qualify for these kinds of cards.

But since the cards consider applicants who have little or no credit history, you will likely find higher interest rates to offset the risk involved with these products. Most of the best student credit cards will not charge an annual fee — a common practice among cards for bad credit. But student credit cards will typically charge interest rates that jump into the mid-20% range.

This also assumes you qualify as a student under the issuer’s definition. Every credit card company has a different set of prerequisites an applicant must meet to be considered a student. Some require that you have at least part-time enrollment in a two- or four-year college or university. Some will mandate that you have full-time enrollment.

Other card issuers may consider a student as someone who is enrolled at a trade school or in a technical program. A few companies, namely Capital One, reportedly do not check your enrollment status at all when you apply for the card.

To prove enrollment, the credit card company may require you to provide transcripts, schedules, grades, or a copy of your school identification card.

If you meet all of the above requirements, you will likely qualify for a student credit card. If you’re unsure of a specific issuer’s definition of a student, you can contact the bank directly to get more information.

If you are not sure whether you will qualify from a credit standpoint, you can attempt to prequalify for a card through the issuer’s website. This should give you the peace of mind you need to officially apply for the card.

5. What is the Best Credit Card for a Student?

Your main objective with a student credit card should be to develop your credit history before graduation. The card should also provide you with an emergency line of credit if you need it during your time in school.

Journey Student Rewards VisaAs a result, the Journey® Student Rewards from Capital One® not only provides generous credit limits, but this card can also allow you to earn cash rewards with no annual fee or foreign transaction fee — which is important if you are studying or traveling abroad.

And your responsible credit behaviors not only build or improve your credit score, they can also help you get higher credit limits over time. Capital One will monitor your account every six months to see whether you qualify for a credit limit increase through its automatic credit limit increase program.

If the bank finds that you do qualify for an increase, it will raise your overall credit line for no additional charge. This will improve your spending power while also helping you decrease your credit utilization, which accounts for 30% of your overall credit score.

You can calculate your credit utilization ratio by dividing your overall credit debt by the total amount of credit you have on all of your cards. For example, a card with a $500 limit and a $250 balance has a 50% utilization rate, which is high.

When you carry a balance that accounts for most of your available credit, a lender may consider you to be unable to pay your current debts and shy away from extending new credit to you.

A general rule of thumb is to keep your utilization below 10%. By doing so, you will always have available credit at your disposal and you won’t potentially harm your credit score by carrying a small balance from month to month.

6. What is the Best Credit Card for International Students?

International students have different things to consider when they travel to the U.S. for school. Not only is there an entirely different culture and way of life to adapt to, but the currency and banking system is completely different than any other place in the world.

To help ease the transition, the Deserve Edu Mastercard provides everything a student may need.

Deserve EDU MastercardFor starters, international students do not need a Social Security number to apply for this card. That’s a big deal, as just about every other major student credit card will require a Social Security number or other proof of citizenship or permanent residency.

And no matter where you are in the world, you won’t pay to convert your transactions into the local currency — because this card does not charge a foreign transaction fee at any time.

But the perks don’t stop there. All cardholders receive free Amazon Prime Student access for their first year with the card. You will also earn a flat 1% cash back on all purchases, as well as a cellphone protection plan if you pay your monthly bill using your card.

Even better, you won’t pay annual fees to add this card to your wallet. Deserve also allows you to prequalify for this card without harming your credit score.

The key to maximizing this card is to understand its target audience. If you can qualify for other student credit cards, this is likely not the card for you. But if you are an international student who does not have a U.S. credit history or Social Security number, it may be a perfect choice.

Instead of using traditional credit rating systems to determine eligibility, Deserve uses non-traditional data — including your checking account information or college major – to determine your creditworthiness. Based on that data, you may qualify for a credit limit of up to $5,000. That is also significant, as many of the best student credit cards will provide much lower limits to new cardholders.

Based on Trustpilot reviews, cardholders’ biggest complaints seem to revolve around the card’s rewards program — which only allows you to withdraw your rewards in $25 increments. That means you must charge at least $2,500 to qualify for the minimum reward.

“An average credit card. The cashback is only given in $25 increments (meaning one must spend $2,500) in order to get cash back which is annoying. With a Credit Limit of $800, it is difficult to get cashback.” — Eddie, Trustpilot reviewer

But, for the most part, Deserve’s ratings are filled with glowing reviews about the card’s ease of use and how it helps transition international students into the American financial system.

“This is the best credit card for an international student who is new to the country, has no SSN or any source of income. Moreover, it gets you 1% cashback and also one year of Amazon Prime membership, which is amazing. The card looks really cool to carry. The card works like any other MasterCard credit card and so far, there have been no issues with card acceptance. The company also helps in building a credit score once your SSN arrives.

Overall, this card is on par with any other credit card you would get for a good credit score in terms of cashback. I am highly satisfied with it and couldn’t ask for anything more.” — Animish, Trustpilot reviewer

If you are an international student and need access to credit-building opportunities in America, this card should be your go-to option.

7. Do Student Credit Cards Offer Rewards?

Most student credit cards not only offer rewards, but there are often several other perks under the hood that will make the cards even more valuable to you.

Let’s start with the student rewards. While you may not find top-shelf cash rewards like you would with other major credit cards for consumers who have good credit or excellent credit, you will find a very competitive rewards rate for consumers with no credit or limited credit.

You can expect rewards somewhere between 1% and 2% on most cards. While the lure of cash back rewards may make a card seem more appealing than others, you shouldn’t choose a card based solely on its rewards.

That’s because some cards will limit how you can redeem your rewards. For example, the Deserve Edu Mastercard mentioned above pays unlimited cash back on all purchases. The catch, though, is that you can only redeem your cash back in $25 increments.

That means you must charge at least $2,500 to your card to qualify for the minimum reward. Many reviews show that the average credit limit on the card falls around $800. That means you’ll have to max out your credit card more than three times to get $25 back.

Most of the cards on our list above will provide rewards of some sort, either in cash back or points. Cash back does as its name implies by letting you earn back a percentage of every qualifying purchase you make. The percentage will vary based on the card you qualify for.

With a points rewards credit card, you can accrue points and redeem them for merchandise, statement credits, cash back, gift cards, or travel rewards.

How to Earn Credit Card Rewards

Your card may also include non-rewards perks, such as cellphone insurance, free Amazon Prime Student access, or refunds for partnered subscription service payments

When choosing which credit card works best for you, keep in mind that most credit card issuers increase interest rates or other fees to offset the cost of the bonus rewards they pay out. If you tend to carry a balance from month to month, a rewards card can increase your finance charges exponentially.

In other words, don’t choose a credit card solely for its rewards. Make sure you understand the card’s interest rates and other charges and fees before you officially apply.

8. How Can I Build Credit with a Student Card?

Credit cards are a great way to establish a credit history and show that you’re financially responsible.

But a credit card can also provide temptations that put you in credit card debt and potentially decrease your credit score. To make sure you only see positive results, you should stick to some important rules that include:

Read the Terms Carefully: Reading the fine print is rarely fun, but becoming familiar with the terms of your credit card long before you start using it can help save you a lot of heartache, money, and credit score points.

For example, some student cards charge an annual fee even if you never use the card. This can end up being expensive and unnecessary. Others charge you very high interest, which can cost you hundreds more every year if you don’t know about the grace period for avoiding interest.

Always Pay Your Bill On Time: Your payment history is the biggest factor in your credit score calculations, so it not only helps you build good credit quickly, but it can also cause a lot of damage in a short period. Even one missed payment can cause your credit score to tank, so always be sure to make at least your minimum payment well before your due date every month.

If remembering things isn't your strong suit, make use of the various tools that are available to help. This includes using the alerts in your mobile banking and budgeting apps, as well as setting up automatic payments from your bank account. 

Don’t Overspend: Just like staying up and partying all night can lead to regrets the next day, excessively using your card can cause a financial hangover. Don’t overspend on your student credit card — you’ll need to pay every penny back eventually.

Before using your card to make a purchase, ask two questions: Can I pay cash for this instead? and, Do I really need this item?

A good rule of thumb is to never charge more than you can repay before your next due date. By always paying your balance in full, you can avoid interest fees thanks to the interest-free grace period, which is always at least 21 days, offered by most credit cards.

Avoid Cash Advances: Although most things can be paid for with your credit card, some occasions simply call for cash. But while it may be tempting to give in to convenience and use your credit card at an ATM, avoid making a cash advance if possible, because credit card cash advances are expensive.

Not only will each cash advance likely come with a cash advance fee of 3% to 5% of the total amount, but cash advances also tend to be charged much higher APRs than regular purchases. Plus, there’s no grace period for cash advances, so you’ll start accruing interest as soon as the cash advance posts to your account.

Take Your Debts Seriously: Get into the habit of treating debt as a valuable tool that you only use sparingly. Respect the power of credit and the responsibility that comes with it. If you establish good credit habits now, you’ll be less likely to wind up in over your head in the future.

Remember that a credit card is a form of a loan. Every time you charge something to your card, you accrue debt that can add interest charges to your monthly bill if you do not pay the entire debt down during your grace period.

Responsible behaviors lead to positive results. By following the rules above, you can start your financial journey on a smooth road.

9. What Happens to a Student Credit Card When You Graduate?

Your credit card issuer will periodically ask you for proof of enrollment to verify that you are still a student, typically every two years or so. Once you graduate or you can no longer provide that proof, one of two things may happen:

Your credit card company will reclassify your account: This is the most common result when you no longer qualify for a student credit card. In most cases, the issuer will simply move you over to a traditional credit card without the student label. Your rewards program and other benefits may change — possibly for the better — so make sure you check your new card’s disclosure statement before activating it.

This, of course, depends on your qualifying for the reclassified account. If you did not maintain your account in good standing during your student years, the credit card issuer may opt to simply close your account while you pay off any remaining debt you owe to the bank. This is obviously the worst-case scenario.

Close your account: In nearly every scenario, this is not the path you should take. That’s because closing a credit account in good standing can have multiple adverse effects on your credit score.

FICO Score FactorsFor one, eliminating a credit line will increase your credit utilization because you now have far less available credit at your disposal. Credit utilization — or amounts owed — accounts for 30% of your credit score and can create a sizable drop in your score as soon as it’s reported to the credit bureaus.

Another negative of canceling your account is that it will keep you from developing a long-standing credit history. Your credit history age accounts for 10% of your credit score.

Lenders like to see a long-standing relationship between consumers and lenders. A general rule of thumb is that seven years constitutes a good length of credit.

If you are just starting your credit-building journey and your student credit card is your first credit card, you can squash your first chance to build that seven-year relationship by canceling your account after graduation.

Instead of closing your card account, you should reclassify your card into a traditional unsecured credit card if you qualify to do so.

Think about the future when applying for a student credit card. If the issuer you are considering does not offer the option to reclassify after graduation, you may want to look at other cards.

The point of credit is to grow with the account. For this reason, you don’t want a card that has a line of credit that is too low.

10. What Fees Do Student Cards Charge?

Since student credit cards cater to consumers who have little, or no, credit history, you likely will not find high credit limits and low fees. Thankfully, though, banks design these cards to be far more affordable than the average consumer credit card for bad credit.

A big moneymaker for just about every credit card company is the annual fee. This is a charge that is added to your card balance every year to cover your cost of membership. The best student credit cards won’t charge this fee — making the card free to use, as long as you pay your balance on time.

That’s key because the biggest money-maker in the credit card industry is interest charges. In 2019 alone, Americans collectively paid more than $122 billion in credit card interest. If you carry a balance from month to month, you will add to that total this year.

Every credit card charges a different interest rate for your balances. The average credit card interest rate currently falls around 17%. Depending on which card you qualify for, you could pay well below that rate or well above it.

Average APR by Credit Score

That’s because student credit cards fluctuate wildly in interest rate offerings. You will likely find that cards that offer the highest rewards rate will also charge the highest interest rates. On the flip side, a basic card with a good credit limit structure and fewer perks will likely provide a lower rate.

From our list above, you can find credit cards that vary between 9.99% and 24.99%. That’s a massive difference for even a small balance.

For example, if you carry an average of $500 on your card each month for one year, you will pay $28.78 in interest charges throughout the year. That same debt, but with a 24.99% interest rate, will cost you $80.63.

Interest charges only increase as your balance increases. That’s why you should keep your balance low — or at $0 — and always pay your bill on time and in full.

11.  How Many Credit Cards Should You Have?

The average American has four credit cards, but that doesn’t mean you should have four credit cards. If you are searching for a student credit card, chances are that you are new to credit and may currently have a limited income.

If that is the case, a single student credit card will suit your needs just fine. With little credit history and even less income, it may be all that you will qualify for.

A big misconception is that you must have lots of credit cards to build your credit history quickly. You can accomplish this just as quickly with one credit card as you could with five. What really plays into your credit score is your credit mix.

Your credit mix accounts for 10% of your credit score and includes the various types of credit accounts you have. This does not mean having many credit card accounts as much as it means having a credit card in conjunction with other lending products — which can include a personal loan, car loan, student loan, or other debt that requires a monthly payment.

But do not feel you need to rush into a good credit mix to build a good credit history. As a student, you should focus on laying the foundation for a strong financial future. One of the best student credit cards listed above can help you develop a positive payment history, which will build a strong relationship with the credit card issuer.

Once you graduate and increase your income, you can add to your credit mix — and begin looking at various rewards credit cards — including a good travel rewards credit card that can help earn you a little extra money.

Until then, keep it simple. School is hard enough.

12. What Does it Mean if a Card is Secured?

The financial industry offers two distinct types of credit cards. Both can help you build — or rebuild — your credit score. One requires a large upfront cost, whereas the other could cost you far more in smaller increments over the long haul.

A secured credit card is typically reserved for consumers who have trouble qualifying for a traditional credit card — typically because he or she has bad credit or no credit at all.

You may not have to rely on a credit check to qualify for a secured card. Instead, you must submit a refundable security deposit that typically matches your credit limit. For example, a $500 deposit will yield a $500 credit limit.

This is not like a prepaid debit card that lets you spend whatever money you deposit onto the card. Instead, the bank will hold your security deposit as collateral in case you stop making payments on your account. You will still have to pay for your charges to the card — with interest — and cannot use your deposit as payment.

You will receive your deposit in full when you close your account — as long as you have no outstanding balance or debts to the credit card issuer. In the meantime, you can use this card like any other credit card — to make purchases, shop online, or pay bills.

An unsecured credit card is a traditional credit card that does not require a deposit for approval. Since these cards provide no collateral for banks in case of default, you may find higher fees associated with your account.

For example, an unsecured card may charge someone who has limited credit a few extra fees — such as a higher interest rate, an annual fee, or an account set-up fee. These fees may not exist — or may be less expensive — with a secured credit card.

Unsecured vs Secured Credit Cards

Both types of cards will report your payment history to each credit bureau, which can help you build a positive credit profile and increase your credit score. The major difference is that you will receive your deposit back with a secured credit card.

With an unsecured card, you may pay annual fees and higher interest rates that you will not get back when you close your account.

13. Which Banks Offer Student Cards?

Just about every major bank and credit card issuer offers some sort of student credit card — with the lone exception being American Express.

That means you can find student credit options through Wells Fargo, Capital One, Bank of America, Citi, Discover, Chase, and many smaller independent banks that specialize in credit cards for the underbanked or underserved.

Remember to read the credit card disclosure document for every card you consider before you apply. While each issuing bank may have a similar rewards rate and national footprint, their cards will likely charge very different interest rates and other fees.

It’s important to note the differences before you apply so that you do not experience any surprises when you activate your card.

Each bank may also have a different definition of what it considers a student when analyzing your application for a student card. Some cards may not allow trade school students, whereas others may not require you to be enrolled in a four-year college or university.

You will also find different credit limit offers through multiple banks. That’s because each bank has its own set of standards for credit approval and determining limits. One bank may see you as very qualified and offer a higher credit limit. Another may see you as a risk and offer a low limit with higher fees.

14. What Happens if I Don’t Make My Payment on Time?

Late payments are never good — and the longer you wait to make your payment, the more it will hurt you.

Payment Delinquency

Your credit report classifies late payments in different tiers. There are 30-day late payments, 60-day late payments, and 90-or-more-days late payments.

All of them will hurt your credit score. A 60- or 90-day late payment will hurt more than a 30-day late payment — but missing a full bill cycle can still sink your credit score by as many as 100 points.

Your late payment will live on your credit report for seven years. The older it gets, the less impact it has on your credit score — as long as you replace it with new and positive data.

In short, a late payment is very bad for your credit report and definitely not the best way to start your credit-building journey.

If you miss your payment by just a few days (or less than 30), it will not report to a credit bureau. Still, you could be subject to late fees and a possible penalty APR that can increase your interest rate to as much as 30%.

If you are near your payment due date and feel that you will not have the money needed to make a full payment, you should contact your credit card issuer to come up with a plan. Although it may feel a bit embarrassing, the issuer can often help you avoid some of the penalties associated with a late payment.

The bank will decide these plans on a case-by-case basis. If you attempt to make a plan every month, the bank will likely be less willing to work with you than if you are having a rare hardship that requires a little assistance.

15. Are Student Credit Cards a Good Idea?

Student credit cards are always a good idea — as long as you can handle the financial responsibility required for one of these cards.

While your diploma will one day help you open professional doors, a good credit history after graduation will help you open the doors to a new car, a home, and several other vital items you will need as an adult.

You can use that credit to help live a better life, have an emergency fund, or see the world with a good travel rewards credit card. You will not regret the choice to build credit while you are in school. And the best student credit cards, listed above, can help you get there much faster.

Editorial Note: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

The information on this page was reviewed for accuracy on .

About the Author

Brittney Mayer Brittney Mayer Credit Analyst

Brittney is a Credit Strategist and Finance Expert who has spent years honing her knowledge of the credit industry both personally and professionally. Brittney applies her more than a decade of research experience to crafting in-depth consumer guides designed to help CardRates readers make better, more informed financial decisions.

Advertiser Disclosure: The credit card offers that appear on this site are from credit card companies from which CardRates.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CardRates.com does not include all credit card companies or all available credit card offers. See the credit card issuer's website for specific terms and conditions of each card.