What is a student credit card?
student credit cards are designed to help you start building accredit. They function like regular credit cards, except they tend to offer lower credit limits and short to no incentives.
You don ’ t inevitably have to be a student to qualify for a student accredit card, depending on the issuer. But you will calm have to meet eligibility requirements, depending on your age.
Age and income requirements
IF YOU’RE UNDER 21
It is technically possible to get a credit tease on your own, but issuers will require you to have an mugwump income, which most college students do not have. If you ‘re under 21 and do n’t have your own income, you will need a parent or another trusted adult to co-sign for you on a credit card application.
IF YOU’RE OVER 21
Credit tease restrictions are not as nasty once you pass your 21st birthday. You ‘ll calm need to demonstrate that you have income, because issuers want to know that you can pay back what you spend. But you can include any income to which you have reasonable access, such as the income of a partner or spouse . Nerdy tiptoe : International students might face another obstacle in their path : Most credit cards require a U.S. Social Security number to apply, which noncitizens typically wo n’t have. however, there are ways to apply for a credit calling card without a Social Security number. For case, the Deserve® EDU Mastercard for Students does n’t require external students to have a Social Security number to apply, alternatively weighing alternative factors to determine eligibility .
Other options for building credit
If you do n’t have any credit history at all, it can be identical difficult to get approved for your beginning accredit batting order. here are a few strategies that can help you absolved that vault.
APPLY FOR A SECURED CREDIT CARD
Secured credit cards require you to put down a deposition that ’ s normally equal to your citation limit. But if you make a little purchase on the card every calendar month and pay the bill on time and in full, you ’ ll be able to build a positive credit history. ampere farseeing as you ’ ve maintained a good payment history, you ’ ll get your situate rear once you upgrade to an unguaranteed citation card ( a regular credit menu ) with the same issuer or close your report and get another credit batting order elsewhere. Closing your account can have minus consequences for your credit grade, so it ’ s best to look for a no-annual-fee secured card that has a path to upgrade to a regular credit poster with the same issuer.
GET A CO-SIGNER
If you get person else to cosign for you, that person’s income and credit history are used to determine eligibility. however, if you misuse the credit calling card, your co-signer’s credit history could suffer. Co-signing a credit card for person else requires a distribute of confidence. And even if you can find person will to do so, it may distillery not be an choice, as there are only a few credit card issuers that allow co-signers.
BECOME AN AUTHORIZED USER
Authorized drug user status is different from getting a co-signer. As an empower user, you ‘ll have a credit rating circuit board with your identify on it, but it will be tied to person else ‘s credit wag account. If that person uses his or her credit calling card wisely, it will reflect well on your accredit history.
USE RENT-REPORTING SERVICES
Rent-reporting services can record your rent payments on your recognition reports. Some services are free and others charge a tip, but it may be deserving paying if it does n’t hurt your budget and you can start building credit early. For some rent-reporting services, your landlord may need to be a bequeath player and verify your payments. But if the stars align, that ’ s enough to give you a credit file, which is better than having no citation history at all.
TRY EXPERIAN BOOST
Experian Boost lets you record cell earphone and utility program payments on your Experian accredit report. It ’ sulfur dislodge to create an account through Experian ’ randomness web site. You ’ ll have to connect the bank accounts you use to pay those bills for this service to work. Experian ‘s web site says that your data will remain individual.
Why building credit now is important
If you can begin to build credit rating while you ’ re inactive in school, it ’ second worth the feat. Having effective credit will smooth your path once you ’ re out of school. It can make it easier to get a job, rent an apartment, get indemnity and utilities — all of which you ’ re probably to need once your student days are behind you.
Nerdy peak : already have a student credit card ? Find out what you can do with it once you graduate .