When it comes to credit, college students usually find themselves at a deficit. Factors such as short credit history and high debt could make it tough to qualify for a credit card.
That is a problem, because a credit card may be a great tool to help build credit. And good credit might come in handy if you want to qualify for a low-interest auto loan, move to a new flat or even buy a house someday.
So if responsible use of a credit card may help you build credit, but qualification for a credit card might depend on credit history … how do you get begun?
To apply for a student credit card, and to use it responsibly, is one way to get started on the right track.
Eric Black, the financial coach with Financial Freedom Mentors, clarifies what makes student credit cards different from other kinds of credit cards.
“Typically, a student credit card has much lower credit limit than other credit cards,” he says. “However, the necessities to get approved are also typically less stringent, since most students have no credit history.”
Student credit cards may also come with financial education, tools like payment reminders and awards planned especially for students, such as a cash-back boost for making payments in time or for getting good grades.
So yes, you can apply for a credit card even if you are a student with little to no credit. With that in mind, let’s take a glance the best student credit card according to in our opinion.
It is for students who would like to build good habits. Capital One presents some extra motivation to use this card responsibly, as you may earn a cash-back boost for on-time payments.
When building credit, it is crucial to every time make your monthly credit card payments on time. Missed or late payments may significantly harm your credit scores because creditors usually view it as behavior that may mean you are less responsible with credit.
The Journey Student Rewards from Capital One card presents multiple incitation to stay on top of your payments.
Though you will earn 1 percent cash back on all your suitable purchases, you may boost that total to 1.25% for every billing cycle in which you make at least the minimum payment in time.
As an added incentive, you can be eligible for a credit limit rise after making your first 5 monthly payments on time. A credit limit rise may also help build your credit, as a higher limit may lower your credit card utilization ratio.