Student Credit Card-Everything You Need to Know

Research conducted by the International Institute of Education has revealed that studying abroad in a foreign university can cost around USD 18,000 per semester! For an entire academic year, the costs of living and studying overseas can be as high as USD 36,000 per annum. 

The above figures are inclusive of expenses such as housing, food, transportation, and any additional costs of living. 

As a student enrolled in a course overseas, you will need to be conscious of your expenses and the finances needed to sustain daily. 

This is where student credit cards come in handy! 

With a good credit card designed to fulfill a student’s requirements, you will be able to monitor your finances better. This allows you to gain an excellent understanding of financial responsibility, which can be crucial to thriving in a foreign economy. 

Here is everything you need to know about student credit card options for international students! 

How important are student credit cards for studying abroad? 

Students’ credit cards have several benefits that can help streamline and simplify your life abroad. 

Remember, however, that different banks will provide credit cards with different kinds of services and advantages. It is important to make a list of all credit card providers and their associated packages before zeroing in on a bank. 

Some of the best student credit cards will offer the following benefits: 

• Low and/or relatively-affordable fees.
• No foreign transaction fees. 
• Travel emergency assistance services, if & when applicable. 

Remember, a student credit card is designed to be approved at any financial center regardless of the limited credit history you may have. This can significantly ease the process of financial transactions without any additional fees or hidden charges.

What are foreign transaction fees? 

Foreign transaction fees are a specific amount charged for purchases processes in a foreign currency or through a foreign bank. For instance, if you have a United States credit card and make a purchase in Italy, you will be charged an additional 5% (approximately) over and above the cost of your purchases. 

While these amounts may seem insignificant for infrequent purchases, sustaining your livelihood abroad with an international credit card can rack up hundreds in fees!

One of the best ways to find more economically-feasible ways of living abroad is by applying for a student credit card. 

What are the best student credit cards for students studying abroad? 

In the vast sea of financial institutions and different types of co-branded cards, it can be difficult to narrow down on one that is perfect for you. 

To help streamline your process, here are some of the best student credit cards with associated perks: 

Discover It Student Chrome Credit Card 

A card designed specifically for students studying abroad, this is an excellent financial tool you can use for your foreign lifestyle. One of the key aspects of this card is the statement credits that students with good grades receive! 

This brand’s student credit cards are known to be customer-friendly; a big advantage for you if it is your first time shifting overseas for education. 

Some of the key perks of this card include: 

• No foreign transaction fees. 
• No annual fees. 
• 2% cash back on select restaurants and gas stations. 
• 1% cash back on groceries and related purchases. 
• A USD 20 statement credit is issued to students with an annual GPA of 3.0 and above. 

One disadvantage, however, is that these credit cards are not widely accepted around the globe. Remember to check the website to understand if the card applies to your education destination or not. 

Journey Student Rewards from Capital One 

The Journey Student Rewards from Capital One is among the best student credit cards that are primarily focused on clearing on-time payments. If you pay your bills on time with this credit card, you receive a 1% to 1.25% cashback. 

This amount is automatically credited to your account every 6 months. 

In addition to this unique feature, some of the other perks of this credit card include: 

• No annual fees. 
• No foreign transaction fees. 
• Automatically eligible for a higher credit line in as little as 6 months. 

Barclaycard Arrival Plus World Elite Mastercard 

The Arrival Plus card is among the best student credit cards that offer remarkable accessibility in foreign countries. One of the key features of this card is its extensive ‘chip & pin’ technology. 

The reward system is very elaborate as well and is an excellent option for students who want to collect miles and points (to redeem later). 

Some of the key perks of this student credit card include: 

• 2 miles earned per dollar spent; can be used on any travel expense. 
• No foreign transaction fees. 
• Bonus points of 60 to 70,000 if USD 5000 is spent in 90 days. 
• Trip-related insurances. 
• Free concierge services (when applicable). 
• Annual fee waived for the first year of the applied academic course. 

Key Takeaways 

• Student credit cards are among the most popular financial tools available to aspirants pursuing studies abroad. 
• With the several expenses that can crop up during your stay abroad, student credit cards can help ease your financial responsibilities. 
• Several incredible student credit cards offer a wide range of benefits for students, based on their requirements for living overseas.
• Remember to choose your credit card by weighing the pros & cons, and overhead costs (if applicable). 

FAQs 

Q1. Do student credit cards provide health insurance benefits? 

Answer – No, most student credit card providers for international aspirants will not have health insurance benefits. These are usually provided by the academic institution granting admission to a student. 

Q2. Can I apply for a student credit card if I have already been awarded a scholarship? 

Answer – Absolutely! If you are a scholarship recipient, some brands may also offer additional benefits on your credit card. 

Q3. Can I ask for a higher credit line or lower interest rate on my student credit card? 

Answer – If you are responsible with your credit card, pay your balance regularly, keep your account secure, and never make late payments, banks will be more than happy to accommodate your request for a lower interest rate or higher credit line. Showing financial responsibility is critical to helping you avail of additional benefits when required.