Lana Oconnell
Discover offers student credit cards that allow students to build their credit history and earn cash back rewards on purchases. The Discover it® Student Cash Back Card and Discover it® Student Chrome Card allow students to earn cash back on all purchases, with no annual fee. Students under 21 must show income and may need a parent or trusted adult to co-sign. To build credit, it is important to pay the balance in full each month or at least pay more than the minimum due to avoid interest charges. Students can manage their accounts on the go through the Discover it® platform, which offers security features and allows students to check their balance, make payments, view transaction history, and redeem rewards.
| Characteristics | Values |
|---|---|
| Annual Percentage Rate (APR) | Costs to borrow money each year |
| Introductory offers | 0% APR for a limited period of time |
| Requirements | Proof of enrollment, income information, age (18+) |
| Rewards | Cashback on purchases, no annual fee |
| Payment methods | Online, phone |
| Credit history | Reports to three major credit bureaus |
| Credit score factors | Payment history, credit utilization, credit age |
| Alternatives | Chase Freedom® Student Credit Card, Bank of America Customized Cash Rewards for Students |
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What You'll Learn
Pay in full each month
Paying your Discover Student credit card bill in full each month is a great way to build your credit history and avoid paying interest on purchases. Here are some tips to help you pay your bill in full and manage your credit card usage:
Set up Autopay
Consider enrolling in autopay to have your statement balance automatically paid each month by the due date. This ensures that you never miss a payment and can help you build your credit score. However, it's important to check your autopay each month to ensure that there are no issues with the payment.
Pay More Than the Minimum
If you are unable to pay your balance in full, make sure to pay more than the minimum due each month. This will help you avoid carrying a balance, which can result in interest charges. It's important to note that late payments or failing to pay at all can hurt your credit score and ability to build credit.
Stay Within Your Budget
Create a budget and stick to it. Only spend what you can afford to pay off in full by the end of the month. This will help you avoid accumulating debt and ensure that you're using your credit card responsibly.
Utilize Alerts
Use the Discover Student login to set up alerts and monitor your account activity. This can help you stay on top of your spending and ensure that you're meeting your payment obligations.
Compare Student Credit Cards
When choosing a student credit card, be sure to compare the options available. Consider factors such as cash-back rewards, annual fees, and the APR you'll pay on purchases. Discover Student credit cards offer no annual fee and a low intro APR, making them a competitive choice.
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Avoid carrying a balance
It is important to pay your Discover Student Credit Card balance in full each month. This is because you will have to pay interest on any purchases or amounts you don't pay off each month. Interest accumulates daily on most credit cards, and coupled with high APRs, it's a recipe for expensive debt.
For example, let's say you've bought a $1,400 laptop and charged it to your credit card. Instead of paying it off, you carry the balance and pay $100 per month. At a 23% APR, it takes you 17 months to get rid of the debt and you end up paying $245 in interest. That's 15% of your laptop's price.
Additionally, carrying a balance does not help your credit score. In fact, it can hurt your ability to build credit. The only thing that builds credit with a credit card is having it on your report and letting it age.
To avoid credit damage from high credit utilization, you want to keep it under 30%. The lower the rate, the better for your credit. A very low utilization ratio could be better than no utilization.
One strategy to avoid carrying a balance is to set up autopay for the statement balance each month. Just make sure to check it each month in case something goes wrong with autopay.
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Set up autopay
Setting up autopay for your Discover Student Credit Card is a convenient way to ensure you never miss a payment. Here is a step-by-step guide on how to set up autopay:
- Login to Your Account: Using your Discover student login credentials, log in to your account on the Discover website or mobile app.
- Navigate to Autopay Settings: Once you are logged in, find the autopay settings section. This is usually located in the account settings or payment options menu.
- Provide Payment Information: Here, you will need to provide your preferred payment method details. This could be your bank account information or another valid payment method.
- Set Up Recurring Payments: Decide on the frequency and amount of your autopayments. You can choose to pay the minimum amount due, the full statement balance, or a fixed amount of your choosing. Select the date you would like the payments to be deducted and set up the recurring payment schedule.
- Confirm and Save: Review your autopay settings to ensure they meet your needs. Confirm the details and save your preferences.
It is important to remember to regularly check your autopay settings and account activity to ensure that your payments are being processed correctly. Additionally, staying within your budget and paying your statement balances on time each month will help you maintain a good credit score and avoid interest charges.
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Redeem rewards
Discover student credit cards allow you to earn cash-back rewards on purchases. The Discover it® Student Cash Back Card and the Discover it® Student Chrome Card offer 1% cash back on all purchases. Additionally, you can earn 5% cash back on everyday purchases at different places you shop each quarter, such as grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate.
Discover will match all the cash back you've earned at the end of your first year, with no limit to how much they'll match. For example, $50 cash back could turn into $100, $100 could turn into $200, and $1 cash back could turn into $2. You can redeem cash back for any amount, and rewards don't expire for the life of your account.
You can redeem your rewards in several ways. You can use them to pay down your balance, with no minimum amount for redemption. You can also redeem your miles as a statement credit toward travel purchases. Discover allows cardholders to redeem any amount of their rewards using their Discover Card at Amazon.com, with no minimum. You can also pay with rewards at checkout through Amazon, PayPal, or by donating cash back to an eligible charity. Rewards redeemed for gift cards may require a minimum amount.
You may be unable to redeem rewards in some limited situations, such as when using an electronic funds transfer to redeem rewards to a new (unverified) deposit account. If your account is closed, Discover will send you a check or credit your account with your rewards balance.
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Eligibility requirements
To be eligible for a Discover Student Credit Card, you must meet the following requirements:
Age
You must be at least 18 years old to apply for a Discover Student Credit Card. If you are under 21, there are different rules for what counts as income.
Residency
You must be a US resident with a physical US address.
Education
You must be enrolled in a 2 or 4-year college, university, or trade school. Proof of enrollment is usually required, which can be in the form of a document that confirms your name, the name of your school, and your enrollment dates.
Income
You must have sufficient income to cover the monthly payments. Income requirements vary depending on your age. While you don't need a job, you must show income.
Credit Score
Discover Student Credit Cards are aimed at applicants with limited credit history. There is no minimum credit score requirement, and you can build your credit history with responsible use. However, some cards, like the Discover it® Cash Back card, require a credit score of 700 or above.
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Frequently asked questions
You can pay off your Discover Student Credit Card by logging into your Discover Student account. From there, you can check your balance, make payments, view your transaction history, and redeem your rewards.
It is recommended that you pay your balance in full each month by the due date. This way, you can avoid paying interest on purchases and accruing credit card debt.
The Discover Student Credit Card is a great way to build your credit history and earn cash back rewards on everyday purchases. It also offers fraud protection and is accepted nationwide by 99% of places that take credit cards.
