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Students: Build Your Credit Early With a Low Limit Student Credit Card

As you begin to embark on the world as a college student, responsibility for yourself shifts from your parents to you. One of the most important things a college student can do for their future is to begin to build their credit. Your credit score will follow you for the rest of your life, and a good score will help you to obtain loans for life’s essentials. If at any point in the future you hope to purchase a vehicle, a home or another large item, now is the time to begin to build your credit.

The great thing about low limit student credit cards is that they are fairly easy to obtain. Since you most likely do not yet have a credit history, this is good news. There are a variety of credit card companies that offer students their first low limit card, and credit history is not necessary. Check out the offers available and chose one that seems good for you.

Once you have your card you will start to build your credit immediately. Within about two billing cycles your credit history will begin. This is why it is essential for students to use their credit card wisely. If you screw up and charge too much or don’t pay your bill, it could be devastating to your credit history. Following the below listed steps will get you off on the right foot.

First, students should come up with a monthly budget. List items on your budget such as groceries, cell phone bill, spending money and any other miscellaneous expenses you may have. Before you begin to use your credit card, make sure that you will have enough money to cover your monthly expenses, if not you will need to trim your expenses or get a part time job to cover them.

Now, decide what you will charge each month on your credit card. One or two small charges is a great way to start. Charging a small grocery bill or even your cell phone bill each month is a perfect way to begin to use your credit card.

Once your monthly bill arrives in the mail, you should pay it immediately. If you need to wait for your next pay check, that is ok. Just be sure to pay it a few days before it is actually due. Also, make sure you always pay the balance in full. Never leave a balance on your card as that will not give you the credit score you are looking for. Plus, you will have to pay incurred interest on your balance.

As you use your credit card each month, do not overspend. Having plastic can make this very tempting, but don’t give in to the temptation. Wise credit card spending habits should start early. Learning to be frugal now will carry over to your future spending habits. Essentially, if you do not have the money for a luxury purchase, don’t buy it, even if your friends are. Down the road you will thank yourself.

If you are careful and follow the important recommendations in this article, you will be well on our way to establishing a good credit history. By the time you graduate from college you will have the groundwork set for your future loan needs.

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Changes in Credit Cards for College Students

Under the new credit card regulations, college students will find it more difficult to get a credit card. Unless you are 21 years of age or older, you will now have to show proof of income or ask your parents to co-sign your application. Credit card companies have also been imposed restrictions that will not allow them to campaign on campuses like they have in the past. Student cards are also expected, under the new guidelines, to carry higher interest rates and have lower credit limits. So does this mean that college students should not use a credit card? Not necessarily.

Typically in the past, having a student credit card and using it responsibly is how young people started to build their credit score and their credit history. These things are very important, especially if in the future you hope to finance a car, mortgage a home or get a good rate on car insurance. Today many employers are even using credit scores to help determine who to hire.

Students should still consider getting a credit card. If they have employment, they should use that as their means to open an account. If they don’t, asking a parent to co-sign is the next best option. If you are unable to do either, then you can look into using a debit card or a pre-paid credit card. Both of these you would still qualify for and they will help to start building your credit. No matter which option you choose you should know the importance and responsibilities that go along with having a credit card.

Having good credit is essential and by using a student credit card wisely, you can begin to build a good credit history and score. If you do not use your card responsibly you could end up hurting your credit, which can take a long time to repair. Always make sure you pay your bill on time. This is very important. You should also pay your bill in full each and every month. If you absolutely cannot do this the, at the very least you should pay more than the minimum balance. Never charge even close to what your credit limit is on the card. It is best for your credit score to charge 30% or less of what you total credit limit is.

Many college students find it easier to use their credit card responsibly if they develop a monthly budget. This is a good life skill to learn. To do this first determine your income and then your expenses. Make sure you include in your expenses all of your monthly bills including what you spend on food, entertainment, clothing, etc. This will give you a guideline of what you can charge on your card each month. If you stick to your budget and never charge more in any one category than what you have budgeted for, then you will always have the money to pay your bill.

One of the biggest pitfalls that college students have when it comes to credit card use is overspending on items that are luxurious. Sure it might be nice to have the 62 inch flat panel television, but can you truly afford it? One of the best things you can do is to avoid using your card to purchase unnecessary luxury items that you simply cannot afford.

Student credit cards do have additional benefits on top of building a good credit history. They can be convenient and safer than carrying cash and in case of an emergency they can be a life saver. Before choosing a card, search around for one that offers a rewards program that fits your needs. Credit Card rewards are also a nice perk.

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Credit Cards For High School Students

Students in high school that are looking to start building their credit early can get high school student credit cards. These credits cards can help teach high school students responsibility, and how to manage their credit at an early age. These types of credit cards are issued to high school students, with a parent or guardian co-signing with the student. Students who have these credit cards also have a sense of responsibility as well.

Before applying for a high school student credit card, both students and co-signers should always look at their available options. There are a lot of banks and credit card companies to choose from, which makes it in your best interest to look around. Some cards will come with high APR and a high annual fee, while some are more reasonable. With high school students not having any credit, some banks and companies will try to charge unreasonable rates – which is reason enough to do your research and know the best deal.

Co-signers can normally help students to make the best decision. The co-signer will be going on the application with the student, and will be the individual that the bank or company will come to when the student is unable to pay the bill. Parents and co-signers will know the best deals for credit cards, which is students should always ask them for help when picking out the ideal credit card.

For some students, prepaid credit cards can be an ideal investment. These cards hold absolutely no risk for students, while they help to teach financial management as well. With these high school student credit cards, the prepaid amount you have put on the card is your spending limit. To ensure that the application for is filled out correctly, students should always have a parent or guardian assist them with filling the information out.

When a student gets their credit card, they should be instructed on how to properly use the credit card. Although some students will be tempted to run up their high school student credit card, they should save it for emergency situations. At the end of the month, they should try to pay their whole bill, to avoid getting into debt. If a student can pay the bill – it will also help boost their credit.

If you are interested in a high school student credit card, you can always apply for one online. The applications are processed in a timely manner, normally giving you a response in a matter of minutes. Although credit cards are great to have, prepaid credit cards are sometimes the way to go with students. If you are unsure – make sure you look into all options available to you and compare what you find out.