If you are about to leave for college or have a child who is about to be in college, you may want to begin to think about which credit cards are the best options to fit a new student's needs. You should assess their potential expenses and any emergency purchases that may crop up over the next few years. There are a few cards that are specially designed to give these students the flexibility and features they need to begin to build credit without unnecessary risks. The best options currently on the market are the Capital One Student Journey card, Discover It Student Cash Back card, and Bank of America Cash Rewards Card for students. These three companies have great perks and exactly the tools they need to get started building their credit. Ask the following questions when pursuing the best credit cards for students.
Can students acquire one of these cards with no credit history?
These cards are specifically designed to offer students with no credit the opportunity to begin building a positive history that can give them advantages over the years. A solid foundation is a key to creating good habits and understanding the fundamental concepts of the way that credit history works.
Can you ask for a higher limit?
In most cases, you will be assigned a specific limit. If you make on-time payments and use good credit-building skills over the course of time, you can request an increase in your credit line. Just make sure you make your minimum payments on time and keep your spending to a minimum.
How old do you have to be to get a credit card?
Companies require you to be at least 18 years of age in order to have a credit card in your name. You can add an additional name to your account in some cases. If you want to add a parent, for instance, you may be able to make this request when you apply for your card.
What is the average credit limit to start?
Each company can vary its initial limit. It can be anywhere from $100 to $500 to start depending on several factors related to the information you submit in your application, as well as the company's standards of practice when it comes to new credit card holders.
What if there is an issue with on-time payments?
Most companies are willing to work with people who are new to building credit. They want to help you so it is best to reach out to them to see what they can do to make getting your payment to them easier and less damaging to your credit score.
Are there any annual fees with those cards?
Before you apply for a credit card, you must first carefully read the terms and information related to the account in question. The company will openly disclose this information in your application. Some may charge an annual fee and if they do they will outline how and when they will require you to pay.
Is the minimum payment going to help pay the balance off quickly?
You are required to pay a minimum amount, but if you want to pay off your balance quickly, you should pay more than the minimum amount. The more money paid with each installment, the faster the balance will go down and the credit score will increase.
When is a good time to apply for a student credit card?
A student can apply after high school and after turning 18. A few months before college starts is a good time to begin exploring credit card options and sending applications. This allows students to be prepared for anything college life has to throw at them.