It's never too early to start creating a solid credit history, whether you're starting college in the fall or have just graduated and entered the workforce. When it comes to some of life's biggest milestones, your credit score, which is based on that history, weighs heavily.
Even if you are studying in college and want the freedom and convenience that comes with owning a Credit Card, are there Student Credit Cards you can use? How does one go about getting such a card? Here's how to apply for and get a student credit card with no credit and what to do if you're not yet eligible.
What is a Student Credit Card?
A student credit card is a type of credit card designed and marketed toward students and recent graduates by banks and financial institutions. Student credit cards typically have a lower credit limit and sometimes have higher credit approval rates for students with little to no credit history and limited incomes. Student credit cards may require a cosigner if you are under 21.
What is the Importance of Student Credit Cards?
College students can find it useful to use a student credit card to make quick transactions and build credit. It's crucial to comprehend how interest works and how long it can take you to pay off your amounts before making purchases with your credit card. The chance to take part in a rewards program where you can gain cash back or reward points may also be available to you. Numerous student credit cards also provide perks targeted at students. You'll need outstanding credit to be eligible for premium credit cards with alluring travel and cashback benefits and to earn the best interest rates on loans in the future.
You may have little or no credit history if you are a college student, which paradoxically makes it difficult for you to be approved for further financial items that can help you build a credit file. For this reason alone, student credit cards make excellent first credit cards. They frequently have smaller credit limits than conventional cards; therefore, the requirements for income may be less strict.
Pay your bills on time, utilize as little of your credit limit as you can, and pay off the balance each month if you want to use a student card responsibly. These behaviors can help you build a strong credit history and eventually qualify for a regular credit card.
How to Qualify to Apply for a Student Credit Card?
Generally speaking, you must fulfill the following criteria to apply for a student credit card:
- Be at least 18 years old
- Pass a credit check
- Earn Money
Let's get into details on how to get approved for a student credit card, along with important things to keep in mind to apply for a student credit card.
Be at least 18 years old:
Issuers normally require you to be 18 years old and above in order to apply for a credit card in your own name. Additionally, if you are under 21, you must provide proof of independent income in accordance with the Credit Card Accountability Responsibility and Disclosure Act of 2009, sometimes known as the Credit CARD Act. If not, you must utilize a cosigner who is at least 21 years old or choose another credit-building method.
Pass a Credit Check:
Credit card companies will verify your credit report, which includes information on any open accounts you may have, such as student loans, as well as your payment history on those accounts. If you don't qualify for student credit cards because of bad or no credit, you can check into other options, such as being an authorized user on a parent's card.
Anyone under 21 who applies for a credit card without a cosigner must demonstrate that they have enough money to cover the monthly payment. A parent or other source of support can contribute money to a joint bank account for you to utilize as part of that income.
What Should You Consider While Choosing a Student Credit Card?
Some student credit cards may offer reward programs that let you earn points and cashback on specific purchases, waive annual fees, and offer reward programs. The following characteristics and advantages should be present in the top student credit cards you find when doing your research:
- Low fees
- Opt for programs with rewards
- Security features
Student credit cards sometimes feature minimal monthly fees. It's possible that maintenance and yearly costs will also be reduced or eliminated.
Opt for Programs With Rewards:
Students may take advantage of program benefits that let them accumulate cash back or reward points from purchases. For instance, by making purchases at specific supermarkets, gas stations, and retailers, you may earn 1% to 5% cashback. You might be able to use these cashback points to get gift cards or cash back for upcoming semester purchases of apparel, laptops, and textbooks.
When you set up automatic payments from your debit card or checking account, student credit cards may also come with helpful safeguards and features like fraud prevention or overdraft protection.
How to Apply for a Credit Card as a Student?
Here is the stepwise process of how to get a credit card as a student:
- Find the best student credit cards for your needs by doing some research
- Find out the requirements to fill out for applications
- Obtain the necessary evidence to prove your enrollment in school. Through the National Clearing House, some banks or credit card firms may authenticate your registration in an acceptable institution.
- Collect the co-information signer's (the cosigner is in charge of paying any missed or late payments on the account) and income documentation.
- Send in your application or apply for a student credit card online together with the required paperwork and get your student credit card after verification.
Why Am I Getting Denied Student Credit Cards?
For student credit cards, card issuers often have less stringent borrower restrictions. You aren't required to have a strong credit history or a high income because they are intended for young folks in college. However, denials continue to occur. Any of the following conditions could lead to the denial of your application for a student credit card:
- Bad Current Credit
- Income Shortage
- Credit Inquiries
- Insufficient Enrollment Proof
- Identity Fraud
- Bad Current Credit
While you can apply for a student credit card with little or no credit history, card issuers might turn you down if you have negative items on your credit record. You are unlikely to be approved for a student card, particularly if you have defaulted on or fallen behind on payments for other types of credit, such as your school loans or store credit cards.
2. Income Shortage
Card issuers want you to demonstrate that you can afford to pay your credit card payments, even if you don't earn a lot of money.
According to current legislation, you can only be approved for a credit card before you are 21 if you can demonstrate your ability to pay either through your own income or by having a cosigner who applies with you and makes payments on your behalf. You will be turned down if your income is insufficient and no parent or close relative co-signs your application.
3. Credit Inquiries
Your credit report will be examined by the card issuer when you apply for a student credit card. The card issuer will see you as a risky applicant and is likely to deny your application if your report shows several recent hard queries. If you recently had a number of hard credit inquiries and were turned down, you can wait a few months before reapplying. (Take note that requesting your credit report on your own is regarded as a light inquiry and won't have any adverse consequences.)
4. Insufficient Enrollment Proof
Most student credit cards need some sort of verification of your college enrollment. A college acceptance letter, your anticipated graduation date, or a college email account might be required. If you omit the required details, the card issuer will probably presume that you are not enrolled in school and will reject your application.
5. Identity Fraud
Identity theft is regrettably extremely prevalent, especially among young children. If identity thieves ever stole your information, they might have opened credit accounts in your name and hurt your credit. You won't likely be approved for a new credit card until the problem is fixed.
Although there are other ways to establish credit while in college if you meet the requirements, student credit cards are a good option. Examine your credit report and select a card that fits your credit profile while you consider your options before applying. One of the best credit cards for students is the Zolve Credit Builder Card which will help you build excellent credit habits early on while also providing you with rewards.
Frequently Asked Questions (FAQs)
Q. Are student credit cards easier to get?
A. Yes, with the right approach, you can apply for student credit cards online easily. Since issuers don't demand that you provide many documents, getting student credit cards is simple. Additionally, the absence of an income verification requirement speeds up the approval.
Q. How old should I be to get a student credit card?
A. You should be at least 18 years old to get a student credit card. You must fulfill the minimum age requirements to be eligible to apply for a student credit card online.
Q. What credit card should I get as a student?
A. The best credit card to get as a student is the student credit card. One of the best among them is the Zolve Azpire Credit Builder Card. This card is easy to use and demands no annual charges.
Q. Can a student get a credit card?
A. Yes, students can get credit cards. Banks provide student credit cards that are specifically designed for students and do not require any form of income source because students should ideally not have an income. A student can apply for a credit card using an existing fixed deposit account as collateral.
Q. How to get a credit card with no income as a student?
A. A student can apply for a credit card with no income if you have a cosigner. Alternatively, you may become an authorized user or get a secured credit card.