How to choose the best student card for study abroad

Studying abroad can be an exciting experience, and you’ll have many things to prepare for as you plan your trip. If you’re a student, you may wonder where you’ll find the best restaurants or the best shops for souvenirs. And if you’re a parent, your child’s safety and overall experience may be your top priorities.

One place where these concerns could overlap is finances. Having a secure financial situation while studying abroad can be crucial to ensuring the most enjoyable experience.

Credit cards often come with many insurances and other protections, making them some of the most useful and secure ways to finance a trip. And if you’re a student, you’ll likely be eligible for student cards that come with a host of other helpful features while you’re overseas.

What is a student credit card?

A student credit card is a type of credit card designed for people attending colleges, universities or other training institutions who may have little or no credit history. The credit requirements on student cards are usually more relaxed than those for a traditional unsecured credit card, and the best student credit cards often come without an annual fee.

Many student cards also come with rewards structures that fit into a typical student’s budget. Common bonus spending categories on student cards include dining, entertainment, streaming services, gas and groceries.

Choosing the best student card for study abroad

Finding the best student card for studying abroad will come down to a variety of factors. The following steps can help you narrow down your options as you keep affordability, credit requirements and rewards in mind.

Break down your spending habits

Before deciding which cards are at the top of your list, take some time to examine your current spending habits. How much do you typically spend in a month, and what do you spend it on?

Now think about your future spending habits. When you’re studying abroad, your spending might look different. Will you be using your card primarily for souvenirs, school supplies or both? Maybe you’ll wind up spending less on gas and more on dining out. Depending on where you spend the most (or plan to spend the most), pick a card that aligns with your top spending categories so you can maximize the amount of rewards you’ll earn.

Bankrate’s credit card spender type tool can help you understand how you typically make your purchases so that you can narrow down a student credit card that’s right for you.

Make sure the card doesn’t charge a foreign transaction fee

A foreign transaction fee is an added charge, usually 3 to 5 percent, for processing purchases with a currency different than your own. Using a card with foreign transaction fees in a country you could be studying in for 4 months or longer can get expensive fast. 

Here’s an example of what a semester’s worth of spending on books and food would cost a student from the University of Iowa studying in Florence, Italy. The figures represented are based on estimates from a Bankrate survey conducted in the spring of 2023 on the average cost of studying abroad.

Although some student credit cards don’t charge a foreign transaction fee, many do. When choosing a student card for studying abroad, save yourself some time (and money) by picking a card that doesn’t tack on extra fees for foreign transactions.

Find out whether the card’s network is readily accepted at your destination

Credit card networks are different from card issuers, though some card issuers have their own networks. Credit card networks help facilitate the transaction between your bank and the merchant you’re making a purchase with.

Visa and Mastercard are the two most popular credit card networks — merchants accept them virtually everywhere. Issuers with their own card networks, like Discover and American Express, tend to have lower international acceptance rates. Additionally, just because that network might be available in a country doesn’t mean all individual merchants will accept them.

Take note of your card issuer’s network and do some research to find out whether merchants in your host country will typically accept your card when you swipe it. If it’s hard to find that information online, talk to students who went through the study abroad program you’re considering or staff who teach in that country to get a better idea.

Check whether you can apply without a Social Security number

If you’re an international student studying in the United States, you can still apply for a credit card. Some student credit cards don’t require a Social Security number as part of the application; instead, they may require an Individual Taxpayer Identification Number (ITIN), which could make them more accessible to international students who want to use credit. Look into the application requirements and short list cards that accept international identification forms.

The best student cards for study abroad

The following student cards are some of the best available for students planning to study abroad. These cards share many of the notable characteristics that make a card good for international use, such as having no foreign transaction fees, offering valuable rewards and even providing opportunities to upgrade once the trip (or your college career) comes to an end.

Alternatives to using a student card abroad

If you don’t want to use a student credit card for a study abroad trip, here are some alternatives you can consider:

Become an authorized user

If a parent, guardian or another person you trust has their own credit card, consider asking to become an authorized user. When you’re an authorized user on someone’s credit card account, you benefit from their available credit and can borrow against it like it were your own account.

Being an authorized user on another account also means that your spending habits and credit building habits will impact each other. So if you act irresponsibly with your card, the main account holder’s credit could be damaged, and vice versa. That’s why, if you decide to go this route, you should ask a responsible and trusted cardholder to add you as an authorized user.

You should also communicate clearly with the primary cardholder on what your spending allowance is and how much, if any, of the card payment you should take on.

Stick to cash

Another payment method that’s almost always accepted is cash. If having your own credit card is too much to manage, you can exchange cash for the local currency and use it for purchases abroad. Many students who study abroad are also able to open international checking accounts at local banks near their university. With this method, you can get a debit card issued to you and use that for most of your payments.

If that’s not an option and you’re more likely to just carry around cash, then you’ll have to keep your safety in mind. Carrying around large amounts of cash can make you a target for theft and bring about other safety concerns, so you should be diligent. Additionally, some merchants may have a cashless payment policy, so you’ll want to have an alternative ready for this situation as well (and vice versa).

Use scholarship money

Apply for financial aid and scholarships through your university or the university in your host country. In addition to covering housing and the supplies needed for your studies, you can use any extra funds to finance other living expenses.

Get a different type of credit card

While student credit cards might seem like the only types of credit cards available to you, that’s not actually true. Here are two other types of credit cards you might want to consider:

Travel credit cards

If you have built some positive credit history by being an authorized user, you might qualify for a traditional travel credit card. While using a travel credit card when you study abroad might sound like the perfect option, it’s important to consider a few key differences between them and student credit cards.

Similar to the best student credit cards for studying abroad, the best travel cards typically come without foreign transaction fees. However, the primary reason to consider travel cards are the top-tier travel perks they come with — which include things like lounge access and travel insurance.

The catch is that premium travel cards often come at a premium price, with many of the top travel cards charging annual fees ranging from $95 to more than $600. Additionally, travel cards almost always require at least a good credit score for approval, which could push these options out of reach for students with limited or no credit history.

Secured credit cards

Secured credit cards are also excellent alternatives to student credit cards. Like student cards, secured credit cards are geared toward those with little to no credit history, but they can also be great for those with bad credit history.

When you sign up for a secured credit card, you put down a refundable security deposit (usually at least $200) that typically becomes your credit line. Most secured credit card issuers also reward good credit-building habits. If you pay your bill on time and use your secured card responsibly, your issuer might automatically raise your credit limit or return your deposit and upgrade you to an unsecured line of credit.

If you don’t think you’ll need a large credit line, you can consider signing up for a secured credit card in place of a student card. Some of the best secured credit cards even offer modest rewards rates, so you’ll still get to earn cash back or points when you make purchases.

The bottom line

As a student, you have several options available for financing your study abroad plans. While a student credit card can provide a lot of perks when you study abroad, you might decide you’re better off with a full-fledged travel card or with just sticking to cash. Becoming an authorized user on a trusted relative’s account might also be a good option for you.

Just make sure you consider all of the possibilities that come with spending money internationally. Prepare for situations where a merchant accepts only cash or cashless payments, and have a clear understanding of what you’ll need most out of whatever financing option you choose. Organizing your finances before leaving on your trip gives you one less thing to worry about during your time abroad — allowing you more time to fully immerse yourself in learning and culture.

FAQs about student cards for study abroad

• What is the most important factor to you in choosing a student credit card?

  When choosing a student credit card for studying abroad, be sure that the card is widely accepted where you are traveling and does not charge foreign transaction fees. You may also want to consider whether the card offers rewards that suit your spending habits.

• Can you get a travel credit card as a student?

  Yes, students are eligible to apply for most travel credit cards. Keep in mind, however, the best travel credit cards often charge substantial annual fees and typically require good to excellent credit scores. Students with limited or bad credit histories may want to consider other options.

• What is the most accepted credit card for international travel?

  Credit cards on the Visa and Mastercard networks are the most widely accepted cards throughout the world. Although they are expanding their footprints, American Express and Discover cards are still not as widely accepted by merchants abroad.