What happens to a student credit card when you graduate?
Some issuers, like Discover, will automatically update your card to a similar non-student card once they're informed that you've graduated, while others will just keep your account as-is. If you like the rewards and benefits your student credit card offers, you can simply keep using it.
Keep your card as is: This means you'll either keep using the card as normal, or you'll keep it open as-is but not use it. Cancel your card:If you have no remaining balance, you can close your account with the issuer and either remain without a credit card or apply for a new one.
Wondering what happens to your account after graduation? No need to get a new card—you can still enjoy all the rewards and benefits your Capital One student credit card has to offer.
College students have an average credit card debt of about $4,300 at graduation.
- Don't Spend More Than You Can Afford. ...
- Be Aware Of Cards With Interest-Free Deals. ...
- Consider A Co-Signer Or Becoming An Authorized User. ...
- Create A Budget. ...
- Maintain A Low Credit Utilization Ratio. ...
- Pay Off Your Card Balance Each Month.
- Higher interest rates. Student credit cards generally have higher interest rates versus other types of cards because it's considered riskier for banks to lend to college students. ...
- Lower credit limits. ...
- Fewer rewards.
If you left school without a degree, you still have to repay your student loans. Even if you feel like your education wasn't valuable or didn't help you find a job, you're still responsible for repaying your debt.
Applicants will typically need fair credit (a FICO score between 630 and 689) to qualify for either of Capital One's student cards, but exceptions may apply.
Your monthly income needs to be at least $425 more than your monthly rent or mortgage payment to get the Capital One Quicksilver Student Cash Rewards Credit Card, according to Capital One. The higher your income is above the minimum, the more likely you are to be approved.
However, unless you're spending a significant amount in the spending categories for the SavorOne Student credit card (dining, entertainment, popular streaming services and grocery stores), you will likely earn more cash back with the Quicksilver Student card.
How much student debt do most people graduate with?
Student Debt in Perspective
Among those who borrow, the average debt at graduation is $27,400 — or $6,850 for each year of a four-year degree at a public university. Among all public university graduates, including those who didn't borrow, the average debt at graduation is $16,300.
51% of 2021-22 bachelor's degree recipients graduated with an average of $29,400 in student loan debt. Among all borrowers, the average student loan debt in 2023 was $38,290. 53% of federal student loan borrowers owe $20,000 or less.
Graduate students borrow 39% of federal student loan dollars. 46% of federal student loan debt belongs to graduate student borrowers.
3. One card is enough. Once you're at an eligible age to apply for a credit card, you could have numerous options, but one card should be enough to handle your needs. Applying for multiple cards in a short amount of time and piling up credit inquiries can affect your credit score.
Key takeaways
They tend to be easier to qualify for, since you don't need to have a good credit history for approval. This also means issuers typically set lower credit limits on these cards to better protect themselves from default. If used irresponsibly, student credit cards can harm your credit score.
There's not a one-size-fits-all solution for the number of credit cards a person should own. However, it's generally a good idea to have two or three active credit card accounts, in addition to other types of credit such as student loans, an auto loan or a mortgage.
You'll Build Credit
Potential employers may even check your credit — in some cases, you might be denied a job if your credit score isn't high enough. Getting a student credit card now (and using it wisely) can help you build your credit score so that it's in good shape by the time you graduate.
Risks of a Student Credit Card
They tend to have high annual percentage rates (APR), so if you spend more than you can afford to pay off by your due date, you'll be hit with interest charges. Those interest rates typically hover around 20%, so charges build up quickly on unpaid balances.
Credit cards typically carry higher interest rates than student loans, and can often exceed 20%. Federal student loan interest usually falls below 10%. Some students may qualify for federal subsidized loans, where the loan is interest-free while the student is in school.
The Department of Education offers several student loan forgiveness programs. You may qualify for these programs even if you didn't graduate. The most popular and widely known forgiveness program is the Public Service Loan Forgiveness program, better known by its acronym PSLF.
Do I have to pay back FAFSA if I drop out?
Federal financial aid regulation states that if you withdraw from all of your classes or cease enrollment prior to the 60 percent point of instruction in any term, you will be required to repay all unearned financial aid funds received.
Your school will apply those funds to tuition and fees first. If there are funds left over, it will send you a check, which you can use for education-related expenses like housing, groceries, bills and more. In some cases, students end up with more money than they need.
If you typically spend more on dining, entertainment, groceries and travel, then the Capital One SavorOne Student Cash Rewards could be a better fit. But if your spending habits better align with Discover's quarterly bonus categories, you might get more from the Discover it Student Cash Back.
There is no general starting credit limit for Capital One credit cards. Your credit limit will be based on your creditworthiness once your application has been approved.
Student credit cards are designed specifically for students, who typically lack the kind of established credit history that other traditional credit cards require. Because of this, the underwriting on student cards tends to be more lax, meaning in some cases you may be able to qualify with no credit.
