Both cards can build your credit history, but they ask for different things: one asks for enrollment, the other for a refundable deposit. Here is how to compare them.
This article is general information and isn’t financial or legal advice. Card terms, fees and rules change, so check the issuer’s current terms and official sources such as the Consumer Financial Protection Bureau and the Federal Trade Commission before you decide.
The essentials
- Student credit cards are unsecured, need no deposit, and typically require proof of enrollment plus income or a cosigner.
- Secured cards require a refundable deposit, often about $200, that usually becomes your credit line and serves as collateral.
- Both card types typically report payments to Equifax, Experian and TransUnion, so on-time payments build history either way.
- Student cards often carry no or low annual fees and rewards such as cash back; secured cards usually offer fewer rewards.
- Paying the balance in full by the due date usually avoids interest through the grace period, whichever card you pick.
Your first credit card usually comes down to two choices: a student card or a secured card. Both are built for people with little or no credit history, and both report your payments to the three nationwide credit bureaus. The real differences sit in the deposit, the eligibility rules and the costs. Which one fits depends on your enrollment, your income and how much cash you can set aside.
Two Common Paths to a First Card
Student cards are unsecured, meaning no deposit is required. Issuers design them for people enrolled in college and often attach modest rewards. Secured cards require a refundable cash deposit that typically becomes your credit line, and they are open to almost anyone, students included. Either card can help you build credit if you pay on time and keep balances low. The trade-off is straightforward: the student card asks for enrollment and income, while the secured card asks for cash.
How Student Cards Work: Eligibility and Typical Terms
Cards marketed to students are typically aimed at 18 to 21 year olds enrolled in higher education. Federal reporting rules treat a card as a college student credit card when it is issued to a full-time or part-time student at an institution of higher education. Issuers generally ask for proof of enrollment plus a steady income, or a cosigner.
These cards are typically unsecured, and annual fees tend to be low or zero. Rewards such as cash back on dining or books are common. Credit lines are modest and set by the issuer based on your application. Our guide to how student credit cards work covers qualification details in more depth.
How Secured Cards Work: Deposits and Credit Lines
A secured card starts with money in the issuer’s hands. You pay a refundable deposit, often about $200, though it can be higher or lower depending on the card, and some issuers accept deposits of up to roughly $2,500. Your credit line usually equals the deposit, so $500 down means $500 of spending power. When you pay your bill, your available credit is restored, just as it is on any other card.
The deposit acts as collateral. If you stop paying, the issuer can use it to cover what you owe. If you close the account in good standing, or the issuer moves you to an unsecured card, you get the deposit back. Some issuers review accounts after a stretch of on-time payments and may raise the credit line or return the deposit. Because approval hinges mainly on the deposit and a regular income, secured cards suit non-students and people rebuilding damaged credit. Our secured credit cards guide explains the move from secured to unsecured.
Costs Compared: Fees, Rates and Deposits
Both card types typically carry variable annual percentage rates, or APRs, the yearly cost of borrowing when you carry a balance. Both can charge annual and late fees. Interest works the same way on each: pay the full balance by the due date and a grace period usually means no interest, though issuers are not required to offer one. Pay only the minimum and interest accrues on whatever remains unpaid.
The clearest cost difference is the deposit itself. A student card ties up none of your cash. A secured card locks up several hundred dollars you cannot spend while the account is open.
| Feature | Student card | Secured card |
|---|---|---|
| Upfront deposit | None | Refundable deposit, often about $200, that usually becomes your credit line |
| Main eligibility | Enrollment in college or trade school, plus income or a cosigner | Regular income and the deposit; open to non-students |
| Typical rewards | Cash back on categories such as dining or books is common | Usually fewer or no rewards |
| Annual fee | Often zero or low | Varies by card; check the disclosures |
| Suits best | Enrolled students with some income who want to keep cash free | Non-students, newcomers without enrollment, and people rebuilding credit |
Credit Building: How Each Card Reports
Secured and student cards both report account activity to Equifax, Experian and TransUnion, the credit bureaus that maintain your credit reports. On-time payments add positive history. Missed payments do the opposite. Keeping utilization low matters as well. Utilization is the slice of your credit line you have charged at any given time, and a small slice signals to lenders that you are not leaning on borrowed money to cover everyday costs.
Smart move
Set up automatic payments for at least the minimum due on whichever card you open. Late payments get reported and can damage the credit history you are trying to build.
Trade-offs for Students, Nonstudents and Newcomers to Credit
For an enrolled student with some income, the student card usually costs less to open: no deposit, low fees and sometimes rewards. The catch is eligibility. Without proof of enrollment the door closes, and income requirements still apply. If you are unsure how issuers treat part-time earnings, our explainer on whether you need a job to get a credit card breaks it down.
For non-students and newcomers without enrollment, the secured card is the more accessible route, provided you can spare the deposit. That money sits with the issuer instead of covering emergencies, which is the real price of entry.
Another route is an authorized user arrangement. The account holder can ask the issuer to add you to an existing account, which puts a card in your hands without an application of your own, and authorized users are not treated as cardholders under federal credit card rules. If your application is denied, our guide to what to do if your first card application is denied walks through the next steps.
Questions to Ask Before You Apply
- Am I enrolled at least part-time? If yes, a student card may be available with no deposit.
- Can I set aside the deposit without missing it? Secured deposits are refundable, but not while the account is open.
- What fees and rates apply? Check the annual fee, late fee and APR in the card’s disclosures before applying.
- Does the issuer report to all three bureaus? Reporting is what makes either card build your history.
Write down your monthly income and essential expenses, then hold each card’s deposit and fee terms up against that number before you apply.
Questions and answers
How much is a typical secured card deposit?
Deposits are often around $200, though they can be higher or lower depending on the card, and some issuers accept as much as roughly $2,500. Your credit line usually equals the deposit you put down.
Can a non-student get a student credit card?
Student cards require enrollment as a full-time or part-time student at an institution of higher education. Non-students generally apply for a secured card instead, which requires a deposit but no enrollment.
Do I get my secured card deposit back?
Yes, the deposit is refundable if you close the account in good standing or the issuer converts the card to an unsecured account. It stays with the issuer while the account is open.
Which card builds credit faster?
Neither has a built-in speed advantage. Both report to the three nationwide credit bureaus, and your payment habits, not the card type, drive the results.