Today, you can learn about best student credit cards and how to apply for a credit card. Before reading this post, you would have to read the relationship between credit cards, credit score and credit history.
First you would need to have Social Security Number (SSN) to apply for credit cards.
If you have a jobs in the university, you will be able to get the letter from your employer and university to apply for SSN.
Best Credit Cards for Students
Since, you will not have any credit history, you have to hand pick which credit cars to apply.
Don’t apply for several credit cards at once. Every time your credit report is pulled, your credit score will go down by 3 to 4 point.
Read Karthik’s experience – I Got Discover Student Credit Card Without Credit History
Here is list credit cards to pick the best credit card for students with no credit
- Check if there is a credit card available for your university.
- Bank of America lists credit cards based on college/university.
- If your university doesn’t have credit card, then apply for basic/student credit card at the bank where you have your account.
- If bank rejected your application, apply for secure credit card with same bank.
- Its easy to get retail store credit cards, but its not recommend for students to get retail store cards as their first card.
- Citi Bank, Discover Card provide student/entry level credit cards.
Credit Card companies will run your credit report while issuing credit card. Several inquiries will lower your credit score and it will stay in your report for 2 years.
Credit Card Features
Banks make money from credit card customers by charging them interest rates and fees. Before you decide to apply for credit card make sure you read the terms and conditions
- Find no annual fee card
- Find low ARP card
- Learn how interest rates are calculated
- Late payment fees
You will be tempted to get a card that gives rewards, but for your first credit card, try to get the basic student credit card and after you have built decent credit history, you can get the card that gives you rewards.
Purpose of getting credit card is to build your credit history. Learn to use the card wisely. If you cannot afford to buy something with your Debit card, don’t use your credit card to buy it.
Best credit card for students is not the one that gives more rewards.
Now, you have an idea about credit card process, you can start applying for credit cards and build your credit history.
After you have decided to apply for a card, go to credit card bank’s website and submit your application. Sometimes, bank will require you to send additional documents.
Additional Info from myFICO
Inquiries usually have a small impact. For most people, one additional credit inquiry will take less than five points off their FICO score. However, inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also means greater risk: people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their report.
Inquiries remain on your credit report for two years, although FICO scores only consider inquiries from the last 12 months. FICO scores do a good job of distinguishing between a search for many new credit accounts and rate shopping for one new account.
Which Cards Do you have?
If you already have credit card, share your comments – which cards did you apply and how did you decide to apply for that particular credit card.
Recommended Student Credit Cards – Discover More for Students Card.