Qualifications for obtaining a student credit card
Students can benefit from the rewards, cash backs, bonus points, and miles that credit cards have to offer. If you are still a student, you do not have to wait until you are out of school and find a job in order to qualify for a credit card.
Since you are new to credit cards and their performances, here are some few things you should consider when applying for a student credit card:
- Annual fee
The best credit cards for students do not charge annual fee. Make sure you choose one that will not charge you a fee for simply owning it. As a student, you probably rely on your student loan, which means that you need a credit card that you can maintain cheaply.
- Credit bureau report
Ensure that the credit card you are applying for provides frequent reports of your financial activities to the three credit bureaus – Experian, TransUnion, and Equifax.
These reports will work to build up your credit score over time, and when you are done with school, you may qualify for loans, such as an auto loan or other that you might need.
- Foreign transaction rates
Some credit cards charge a fee around 1% to 3% on all purchases done in foreign countries. If you are an international student or are about to travel abroad for further studies, ensure the credit card you apply for does not charge a foreign fee.
Now that you know what to look for in a credit card, how will you know if you qualify for one?
To qualify for a student credit card, you must be 18 years and above because you have to use your own personal details and not those of your parent or guardian when applying.
Credit card companies also prefer that applicants below 21 provide proof that they earn some income whether as a part time job or anything else that is your independent source of income.
If you are 18 and have no job, you can still qualify for the credit card but you must have a cosigner who is above 21 years.
Be a student
To receive approval for the card application, you must prove that you are an enrolled student at a college.
You may have to provide a copy of your student ID or a letter of offer from any college.
Credit card companies will look at your credit history to establish whether you qualify for a student credit card. If you have any defaulted student loans, you will not qualify.
Source of income
Even though you are a student, you have to prove that you will pay the credit card bills on time. You must have a source of income preferable a job especially if you are below 21 years with no cosigner.
You must be a U.S citizen to qualify for a student credit card. You may have to provide a copy of your birth certificate, driving license, or a permanent home address.
If you have all of the above qualifications, apply for a student credit card and begin your journey to an excellent credit score.