How can a student with limited income and no credit history get a credit card? By applying for a student card. Student credit cards require no income or co-signer. Usually these cards offer small credit lines with reasonable rates. By using one wisely, you can build your credit. What To Look For When you are shopping for a student credit card, dont bother applying for a regular card. For one, you will be denied if you have no credit history. For another, every time you apply for credit, you are lowering your credit score. Multiple credit applications in a short period makes you look desperate for cash. Lenders avoid such people. Instead, look for a credit card that is targeted for students. Usually such cards will require no income or co-signer. Your credit limit will be small at first, but you can increase it later on. If you do need a larger credit limit, you will need to find a co-signer who will be partially responsible for your payments. You will also want to look for a card with low interest rates and no annual fees. You may also find a card that offers discounts or rewards. These can help you financially, but dont get caught on paying out large financing fees. Shop Credit Card Companies Dont be afraid to compare credit card companies offers. Just because you find an application on campus or in the mail, doesnt mean there arent better ones out there. Search online for student credit card programs. Be sure to read the terms of agreement to know what rates and fees they are charging. Building Your Credit Once you have your card, start using it once in awhile. You want to be sure that you dont max out the limit and that you can always make at least the minimum payment. Ideally, you should pay off the entire balance each month. You dont want to ruin your credit with late or missed payments. After at least six months, you can apply for other types of credit, such as store credit cards. However, you dont want too many credit accounts open or it will hurt your credit score. Have enough credit open to cover emergencies. That way you will have enough available credit to purchase a car or home in the future. To view our list of most recommended student credit card companies online, visit this page: Recommended Student Credit Card Companies Online. |
