Studying abroad is an exciting and life-changing experience, but it also comes with its fair share of challenges, especially when it comes to managing finances. One of the most important financial tools that international students can benefit from is a credit card. A good credit card offers several advantages, such as building a credit history in a new country, making international transactions easier, and earning rewards on everyday purchases. However, not all credit cards are suitable for international students, especially those without a long credit history. In this article, we’ll review the best credit cards for international students and highlight the top 3 picks for students studying abroad.
Why Should International Students Get a Credit Card?
Credit cards offer a range of benefits that can make life easier for international students:
- Building Credit History: One of the most important aspects of living abroad is establishing a good credit score. A strong credit history can help you secure loans, rent apartments, and even get better rates on insurance.
- Ease of Transactions: Credit cards are accepted globally, making them a convenient way to pay for goods and services. Having a credit card means you don’t need to carry large amounts of cash or worry about foreign currency conversion fees when traveling abroad.
- Rewards and Benefits: Many credit cards offer rewards programs that allow you to earn points or cashback for every purchase. These rewards can help you save money on travel, dining, and other expenses.
- Emergency Access to Funds: A credit card can act as a financial safety net in case of emergencies. If you find yourself in an unexpected financial situation, having a credit card ensures you have access to funds to help you out.
However, choosing the right credit card is crucial. Since international students often lack a U.S. credit history, not all cards will be easy to qualify for. With that in mind, here are the top 3 credit cards for international students.
1. Deserve® EDU Mastercard for Students
Best for: No Annual Fees and Global Acceptance
The Deserve® EDU Mastercard is one of the best credit card options for international students, especially those who are just getting started in building a credit history. This card offers a range of features that make it an excellent choice for students studying abroad.
Key Benefits:
- No Annual Fee: The Deserve® EDU Mastercard has no annual fee, which is great for students who are looking to minimize their financial obligations.
- Global Acceptance: This card is accepted worldwide, making it an ideal option for students who need to make purchases both at home and abroad.
- Up to 1% Cashback: For every purchase, you earn 1% cashback. This can add up quickly, especially when you’re making purchases like textbooks, groceries, or travel-related expenses.
- No Credit History Required: One of the standout features of this card is that it doesn’t require a U.S. credit history to qualify. As an international student, this is a big advantage, as many U.S. credit cards require applicants to have a credit history in the country.
- Student-Friendly: Designed specifically for students, this card is an excellent way to build a credit score without getting into debt.
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Drawbacks:
- Limited Rewards: While the card offers cashback, the rate of 1% is not particularly high compared to some other cards with higher cashback offerings.
Who it’s Best For: International students who are looking for an easy way to build their credit without paying annual fees. This card is ideal for those who travel frequently and want a card that is accepted globally.
2. Journey Student Rewards from Capital One
Best for: Earning Higher Cashback with Responsible Spending
The Journey Student Rewards from Capital One is another excellent credit card for international students. Known for its rewards program and flexibility, this card is designed to encourage responsible spending and offers great value for students.
Key Benefits:
- 1% Cashback on Every Purchase: You earn 1% cashback on all purchases, which is ideal for everyday spending like groceries, dining, and travel. This cashback rate can be boosted to 1.25% if you pay your bill on time, which is a great incentive for students to maintain good payment habits.
- No Annual Fee: Similar to the Deserve® EDU Mastercard, the Journey Student Rewards card also has no annual fee.
- Access to a Higher Credit Limit: Capital One may offer you a higher credit limit as you demonstrate responsible spending and timely payments. This can be helpful for students who need more purchasing power.
- Easy to Qualify For: This card is designed for students with limited credit history, making it a great option for international students who are just starting to build their credit in the U.S.
Drawbacks:
- APR: The Journey Student Rewards card comes with a relatively high APR, so it’s important to pay your balance in full each month to avoid interest charges.
Who it’s Best For: International students who want to earn rewards for their purchases while also building their credit. It’s ideal for students who are committed to paying off their balances on time and want to earn a little more cashback with responsible spending.
3. Citi Rewards+℠ Student Card
Best for: Earning Extra Points on Everyday Purchases
The Citi Rewards+℠ Student Card is a top pick for international students who want to maximize the value of their purchases by earning rewards points. This card offers a unique rewards program and a range of benefits that make it attractive for students.
Key Benefits:
- 2X Points on Supermarket Purchases: You earn 2 points per dollar spent at supermarkets (on up to $6,000 per year) and 1 point per dollar on all other purchases.
- 10% Points Back: Citi gives you 10% of your points back for the first 100,000 points you redeem each year, which makes this card even more rewarding.
- No Annual Fee: Like the other cards on this list, the Citi Rewards+℠ Student Card comes with no annual fee.
- 0% Intro APR for 15 Months: If you need to carry a balance, the Citi Rewards+℠ Student Card offers a 0% introductory APR for the first 15 months on purchases and balance transfers. After that, a variable APR applies.
Drawbacks:
- Limited Rewards Categories: The 2x points on supermarket purchases are great, but beyond that, the card doesn’t offer as many bonus categories as some other rewards cards.
- High APR After Introductory Period: After the introductory 0% APR period, the regular APR can be quite high, so it’s important to pay off your balance before that time to avoid interest charges.
Who it’s Best For: International students who want to earn points on everyday spending, especially at supermarkets. This card is also a great option for students who anticipate making large purchases and want to take advantage of the introductory 0% APR.
Final Thoughts: Which Credit Card Is Right for You?
When choosing a credit card as an international student, it’s important to consider factors such as the rewards program, fees, and whether the card is easy to qualify for. Each of the three credit cards reviewed in this article offers different benefits, so the best one for you will depend on your personal preferences and spending habits:
- If you want a straightforward, no-fee card with global acceptance, the Deserve® EDU Mastercard is an excellent option.
- For students looking to earn rewards while building credit, the Journey Student Rewards from Capital One is a solid choice.
- If you’re someone who spends a lot on groceries and wants to maximize rewards points, the Citi Rewards+℠ Student Card could be the best fit.
Remember, whichever card you choose, always make sure to use it responsibly by paying off your balance on time and keeping your credit utilization low. This will help you build a solid credit history and ensure that your study abroad experience is financially smooth.
