How To Get A Student Credit Card

Student credit cards have a lot in common with other types of credit cards, the main difference being that student cards are designed for people who are just starting out in the world of credit cards, meaning a lengthy credit history isn’t a requirement to be approved.

Often these cards offer rewards that are appropriate for students and typically have no annual fees, but on the flip side credit limits are lower, rewards programs aren’t as generous and interest rates are higher because students are considered high or at least higher risk.

The best reason to get a student-specific credit card is to begin building your credit score. Put the effort into using them responsibly and you’ll be rewarded with a solid credit foundation which you can use to apply for cards with more robust rewards, and eventually to qualify for car loans and mortgages at more palatable rates.

Student credit cards are designed for those just starting out in the fiscal world, and as such it is relatively straightforward to qualify for a card. However, there are a few factors that can have an impact on your eligibility.

While it is true that a long and distinguished credit history isn’t a major requirement, issuers will look at your credit score, so a bad credit history may present an issue. If you have been added to a credit card account as an authorised user, you are subject to the highs and lows that come with the primary user’s usage.

If your parents are responsible and have good credit, you will likely benefit. If, on the other hand, they aren’t particularly responsible, then the opposite is true. If you are a student reading this before college, ask your parents if you are an authorised user (if you don’t know already) or, if you’re a parent, you might want to consider checking what accounts your children are linked to and what kind if impact those accounts are having on their credit.

There are also a few other standard stipulations to consider, the most obvious being you have to be enrolled in a college or university and be at least 18 years old to be approved for a student card. Additionally, you are almost always expected to have a source of income, such as a part-time job or a regular allowance from your parents. Expect to show proof of this.

Read More: Best Credit Cards For Students With No Credit

Like any other card, the right choice for you will largely come down to your specific situation and needs. The majority of student cards are free of annual fees, but interest rates are usually not fantastic. You won’t really have that much bargaining power, but it is worth remembering that while it may seem like this is a one-way negotiation, the credit card companies are trying to court you and retain you for the rest of your life, so they may be willing to work with you on terms once you’ve established a solid credit history.

When it comes to specific cards, think about the rewards being offered. Does the card you are applying for offer bonus categories in which you frequently spend? Do the rewards come as cash-back or as points? What about additional benefits? Some cards come with extra perks designed to entice potential customers. Does the card grant free access to your credit report? Many, but not all student cards do, and knowing where you stand is a valuable tool when building credit.

If you study abroad you might want to look for a card that has no foreign transaction fees, and if you are thinking about a new laptop you might want to consider a card that has an extended warranty feature or a 0% APR period.

Also, be aware of penalties and fees for missed payments or exceeding your credit limit. They can build up, and set you on a downward spiral. Finally, you’ll want to ensure that whatever card you choose reports to all three credit bureaus, because this is the thing that will allow your credit to improve.

You can apply for most credit cards online, over the phone or in person. Applying online will usually result in the quickest decision. Simply go to the issuer’s website and follow the links to apply. You will be asked to provide some personal information, such as your name, address and social security number. Be prepared to provide proof of your income, such as pay stubs or bank statements as well.

If you wish to apply over the phone, look online for the issuer’s number, and give them a call. Tell the representative which card you wish to apply for, and they should be able to help you. This can be beneficial if you have specific questions.

It almost goes without saying, but at this early and somewhat critical stage of your credit journey it’s crucial to use your card responsibly. Regular or continued reckless spending will have an almost immediate and potentially disastrous impact on your credit score.

Avoid using cards for purchases that you can’t afford to pay off, pay your balance in full and on time each month and don’t be tempted to take cash advances or do balance transfers–these things almost always come with exorbitant fees. Setting up automatic payments is also a good idea.

Signing up with the three big credit reporting agencies—Experian, Equifax and TransUnion—is the easiest and most efficient way to track your credit score. Experian offers both a free plan and a premium subscription, while the other two offer a few different premium plans.

Additionally, Some credit cards allow you to check your report for free. Discover, for example, offers student credit cards with free access to their credit score, with no annual fee and or credit check required. And, Discover reports your credit history to the three major credit bureaus so you can build credit and you can view and track your FICO Score for free.

Also, once a year you can get free annual reports from all three agencies—a right guaranteed by Federal law—from AnnualCreditReport.com, a site that is sponsored by those same agencies but authorised by federal law. This service is offered weekly through the end of 2023.

Read More: Best Credit Monitoring Services

For better or worse, credit cards are an essential part of daily life after college, and it’s time to get used to using them responsibly. Student cards are the first step on this path. Remember, it is easier to build and maintain a good credit score than it is to turn bad credit into good credit. Using a student credit card responsibly is a smart move as a healthy credit score will have massive impacts on your life down the road.