iQuanti: Students often face a dilemma when it comes to building credit. They need a credit card to begin working on their credit history, but can’t get approved for a credit card to start the process. Luckily, it’s possible to get a credit card as a student with no credit score or history. In fact, many credit cards are designed for people looking to build their credit. Read on to learn more about how to get student credit cards when you have little to no credit.
Can you get student credit cards with no credit?
It can seem tough to get your first card when you have no credit, but there are plenty of options out there. Credit cards for people with no credit tend to have no annual fees and simpler reward structures.
In general, it’s a good idea to stick with credit cards marketed as “student credit cards.” Credit card issuers know that students have no score or history, so these cards are easier to get approved for if you’re a student.
How to get your first credit card
Here’s a quick guide to applying for and getting your first card:
1. Compare cards
First, look at the right cards. Many student cards don’t require a credit score, and you can usually find these with an Internet search. These cards mainly want to see income and rent payments, so that means getting a job can greatly improve your chances.
Secured credit cards are another good choice for students with no credit. Secured cards make you put down a security deposit — which becomes your credit limit — in order to open the card. The credit card issuer can take this deposit if you can’t pay a bill, making these cards much easier to qualify for. If you continue paying your bill on time, your issuer may eventually be open to converting your card to an unsecured one.
Prequalification involves getting approximate credit card terms from a credit card issuer by giving them a few pieces of basic personal information.
The issuer runs a soft credit check, which doesn’t harm your score or play a part in your ability to get approved. Yet, if you prequalify for terms, that indicates a strong chance of getting approved for those same terms. You can gather multiple prequalification offers from credit card companies to see what options may be available to you.
3. Apply for the best card for you
After weighing your options, apply to the card with terms that work best for you. You’ll need to provide information like your name, mailing address, Social Security number, estimated income, and housing payments (such as rent).
Get your first credit card and start building credit
Even if you have no credit as a student, you can still get a great credit card by researching the right cards and getting some prequalification offers. Once you’re approved, make sure to use the card wisely and pay the bills on time. That way, you’ll take advantage of the rewards structure while building your credit and setting yourself up for future success.