Student credit cards are easy to obtain via an online application, but monthly payments can be difficult to manage. As with most credit cards, the interest rates may be high, and there may be an annual fee to pay. Beyond this, however, be aware that the credit card company can raise your interest rates if you are late on even one payment. Student credit cards should be used as a last resort if you need to buy a computer for school, and have a steady job, or other regular income to pay off the credit card in full within a few months. You can get a free credit report online, or check your credit score at one of the ‘Big 3’ Credit Bureaus, Transunion, Experian, or Equifax.
Secured Credit Card application:
Build your credit with a secured credit card for students. There are no application fees or activation fees, and the credit line varies, from $300-$4,900. Your maximum credit line is based on your income as well as the amount of your security deposit. Given that you make the minimum payment monthly, your credit history and credit card account information will be shared with all three major credit bureaus. After 12 months, your security deposit may be returned if your payment history has been excellent. Apply now for a secured credit card from Bank of America, or an American Express credit card . You can improve your credit score dramatically by securing credit cards, and then simply not using your credit line. Your credit score is a ratio of your total available credit to the amount of debt that you carry. For example, if you get more credit cards, and don’t use the credit, your available credit has increased, but your debt load has remained constant. Banks and credit unions naturally offer the easiest credit to the borrowers who need it least, and have strict employment and earnings requirements. You may also be asked to list your assets, or seek a co-signer, if you don’t have sufficient income to qualify for a credit card on your own.