Thinking of getting a credit card but still a student? You can actually get one if you are already 21 years old. This is the age allowed by Federal Law to apply for a credit card. If you already meet the requirements set forth by the law, then you can now start scouting for the right card and start building your credit.
Why Apply for a Student Credit Card
There are a number of reasons why you should apply for a credit card while still a student. For one, you can use the card for emergencies related to school. You can use it to buy materials for your project, pay your tuition or use it for any other things related to your current situation. Most of all, you can use it to start building your credit. You must be aware, though, that you should use your card sparingly so as not to incur debt. Be wise with your spending habits and use only your card when faced with an emergency or when the situation really calls for it.
How to Get Your First Card
You may have already received tons of offers from creditors. Before you submit an application, it is wise that you do some research first. Here are some strategies that may help you in getting your initial credit card:
• Contact Your School – There are many educational institutions that offer their own credit cards to students and members of the alumni. You can compare the rates and the promotions offered by each card issuer to find the most ideal one for you.
• Choose Your Card Wisely – Students typically don’t have income yet. Although most creditors will turn you down for this reason, you can actually find cards that are designed for young people. When selecting the card, do not be blinded by the rewards program. Usually, you will not be using your credit card for several purchases so the rewards are not a great deal for you. Take a look at the rates, particularly the annual fee. As much as possible, steer away from those that have annual fees. If the card you have chosen has an annual fee, it would be wise to go to the next option. While your next option may not offer better terms compared to your first choice at first glance, you may find out in the end that it is actually a lot better because it has the potential to save you from unnecessary headaches in the future.
• Open a bank account – If you find it difficult to look for a creditor that approves your application due to your financial status and credit history, opening a bank account is your best option. Issuers, such as American Express, Citibank, and Chase provide banking services along with credit card products. If you have an account with any of these companies, you will most likely have a better chance of being approved for a credit card.
It may be hard to get approved on your first attempts to apply for a credit card. There can be several reasons why your application has been denied. Do not lose hope when this happens. Credit card issuers have varying policies in approving applications. You will definitely be able to come across an issuer that is not too hard in approving applications.
Compare student credit cards below: