Should First Year Students Get a Credit Card? Pros, Cons, and Tips 

By Garrett Johnson

Should first year students get a credit card? For many, it’s one more financial choice on top of the many new responsibilities that come with starting college or university. New students are suddenly responsible for new expenses like textbooks, housing, groceries, and social outings, all while trying to navigate their academic schedule. It’s normal to be curious about credit cards because they promise convenience, rewards, and a taste of financial independence. However, the habits you form in your first year can set the foundation for your long-term financial health, which is why understanding the pros and cons before applying for a first credit card is so important. Taking the time to consider your readiness can save stress and financial headaches later. 

Are You Missing Out If You Don’t Have a Credit Card?

Explore the First-Year Student Credit Card Series

1. Should First Year Students Get a Credit Card? Pros, Cons, and Tips
2. How to Use a Credit Card as a First-Year Student
3. What First-Year Students Should Do If They’re Struggling to Pay Their Credit Card

It’s important to remember that the offers are marketing tools, not guarantees of financial success, and students should pause to evaluate whether they are ready to handle the responsibility. Some campaigns allow students to apply for several different credit cards by filling out only one application. This can be detrimental to a student’s credit score because each credit card company will make an inquiry on the student’s credit report. Credit card companies also make it easy for students to qualify for a credit card with a special customer category and rock-bottom income requirement. The resulting credit card(s) will have a low limit, often between $800 and $1,500, which is enough for a student to get started building a credit rating or setting themselves up for problems with high interest debt.  

Pros of Having a Credit Card as a First-Year Student: Benefits of Student Credit Cards

One of the biggest pros of having a credit card as a first-year student is the chance to start building a credit rating early. Having a card and using it responsibly, such as paying off the balance in full each month and on time, can help students qualify for better interest rates on future loans or even make it easier to rent an apartment after graduation. Starting this process early can give first year students a head start compared to peers who wait until later in life to begin their credit journey. 

Another benefit is the convenience factor. A credit card can make it easier to cover online purchases, pay bills, or book travel, especially if students move away from home and need to handle expenses on their own. For example, paying a utility bill online or securing a ticket home for the holidays often requires a credit card, making it more practical than relying on cash or debit alone. 

Some student cards also come with perks that provide extra value. Rewards like cash back on groceries, discounts on gas, or extended warranties can be useful for purchases that students are already making. Buying coffee, snacks, or meal delivery during long study sessions, for example, could earn cashback rewards on a student credit card, helping first-year students stretch their budget while covering everyday expenses. 

What Does Being a Frugal Student Really Buy You?

Finally, a credit card can serve as a financial safety net. Emergencies are unpredictable, and if a student’s car breaks down or they need to replace a broken phone, having access to credit can help bridge the gap until they can access funds. For students who are disciplined and engage in good budgeting habits, these advantages can outweigh the risks and make credit a helpful tool rather than a burden. 

5 Things to Know Before You Get a Credit Card & Tips to Use it Wisely

Cons of First-Year Students Getting a Credit Card: Credit Card Risks for Post-Secondary Students 

While the benefits are real, the cons of first-year students getting a credit card can be much higher for someone as they start their post-secondary journey. The most obvious danger is overspending, especially when faced with the excitement of newfound independence and a shiny piece of plastic they want to show off. With so many social events, late-night food runs, and the temptation of new freedom, students can quickly rack up charges without realizing how quickly small purchases add up.

Your Attitude About Credit Use Can Cost You

Credit cards aren’t free money and another con is the interest, which can be a surprise to students who are new to using revolving credit. Many don’t realize that carrying a balance can cost upwards of 20% or more in annual interest charges. Missing even one payment can cause higher interest rate penalties and fees or late charges to pile on, making it difficult to catch up from a cycle of debt that feels impossible to escape. 

There’s also the long-term impact on credit scores. Poor habits developed in the first year, such as only paying the minimum balance or ignoring statements, can lead to late payments that damage a student’s credit rating. A low credit score doesn’t just make future borrowing more expensive — it can affect housing applications,  job opportunities, or student loan applications, adding unexpected consequences years down the line.

Finally, there’s the stress factor that can come with trying to manage debt. For a first-year student already adjusting to academics, living away from home, and maybe holding down a part-time job, adding credit card payments can create overwhelming pressure. Instead of providing independence, a poorly managed card can quickly become a source of anxiety that affects school performance and overall well-being.

Is Your First Credit Card Getting Out of Control? Here’s How to Get Yourself Back on Track

Should First Year Students Get a Credit Card? What to Do If You Need Help With Credit Card Debt 

For first-year students, figuring out whether getting a credit card is the right choice can feel complicated, and many students lack the financial literacy to make a wise choice. On one hand, starting early can build strong financial habits, but on the other, the risks of debt and stress are very real. What matters most is taking the time to honestly assess whether you’re ready to handle the responsibility now, or if it might be better to wait. If you’re unsure about the right choice or are already struggling with credit card debt, you don’t have to figure it out alone. Speaking with one of our friendly, accredited Credit Counsellors can help you understand your options and manage your current debt better. Reach out today to get guidance tailored to your situation so you can build healthy money habits and feel more confident about your finances.

Up Next: How to Use a Credit Card as a First-Year Student

Last Updated on September 29, 2025