First Time Credit Cards for Students
Did you ever wonder why credit card companies are so anxious to offer credit cards to college students–most of whom have little to no credit history? The reason is simple: These lenders know that, in most cases, if the students get behind on their bills, their parents will step in and help them out. This, the lenders believe, makes college students a pretty good risk.
You should take advantage of this fact, because if you go through college without getting a card, once you’ve graduated, it will be more difficult to get one. At that point, the credit card companies know that parents are less likely to help you out, and without prior credit, it will be harder to get one.
So let’s talk about first time credit cards. Just how do you get started?
The first step is to check your credit report from all three companies, Equifax, Transunion, and Experian. Ever since Congress passed legislation in 2005 demanding that they offer you one free report a year, the Big Three have done so via the www.annualcreditreport.com website. Or if you’ve been denied credit in the past two months, they will send you a copy of your credit report for free (if you ask). If there are any mistakes, notify the credit-report agency and ask them to remove it (If they can’t verify it’s correct, they have to remove it).
Once you’ve taken care of this, apply for a card at the bank where you have your savings or checking account. Hopefully you won’t have a history of bouncing checks with them; if not, and if you have a full time job, most will issue you a card. It will probably have a low credit limit, but as you make faithful payments, it will go up in time.
Even if the bank won’t issue you a card, there are other options for first time credit cards. Try applying for a department-store’s inhouse card, or a gasoline card. Both of these are fairly easy to get, and both report your payment history to the credit bureaus.
If all else fails, one other possibility is to apply for a secured credit card. Just do a search online for “secured credit cards” and you’ll find dozens. These are cards where you make a payment upfront on the card, and your credit limit is determined by that initial deposit.
First time credit cards can be difficult to obtain, but after a little time and effort, you’ll find something that will help you build your credit future.
To learn more about credit or to apply for college student credit cards visit www.studentcreditcards.com
Student credit cards.com @ March 14, 2008