Should students invest in a credit card today?

Updated: Mar 17

Credit Card

Do you need a credit card as a student?

If you are responsible, a student credit card can help you build your credit score, manage your finances, and even allow you to enjoy benefits such as cashback and promotions.

However, the credit limit for a student credit card is usually capped at $500. The good news is that the annual fee is either waived, or very little.

What is a Credit Score?

Credit score is a number used by financial institutions to assess how likely an individual can repay his/her debts, and their likeliness of default. You might think it is not important for you as you won’t take any debt. What about your mortgage, car loan and personal loan (if required)?

I’m sure you have heard of the term “High risk, High reward”. It is similar to how lenders evaluate their risks by examining someone’s credit score. If you have a low credit score, you'll be perceived as a high-risk borrower, and could possibly only take loans with higher interest rates, which gives higher rewards for lenders agreeing to take on the risk of lending money to you.

How do you build a strong credit score?

  1. Use your credit card responsibly and avoid going into debt

  2. Make payment on time and in full

  3. Avoid applying for credit cards and not using them.

What you should look out for when applying for a credit card

Is the phone app of the bank user-friendly?

Are there any annual fees payable for holding the card?

Is it a miles or cashback card?

What is the percentage of the cashback? What are the terms and conditions for the cashback?

Are there any gifts for signing up for the credit card?

Recommended cards suitable for students

Simply click here to see the comparison of credit cards for students.


Personally, I feel that the Maybank eVibes card is the best credit card for students. The quarterly fee will be waived if used at least once every 3 months, and there is a 1% unlimited rebate on all spending.

Getting a credit card as a student makes sense, but you should always repay your spending in full every month, and not allow your credit card debt to snowball. Always remember to use your credit responsibly!

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