These credit cards are aimed for students that are responsible adults in their college years and have minimum earnings. The purpose of these products is to support students to generate a good record on their credit bureau.
Even though it’s true that the amount of money that is borrowed through one of these cards is not as high as the credit limit of other cards, it’s a fantastic option to cover your necessities of buying books and materials that support your education.
At the same time, you will begin your credit activity, which will serve you later on in life to ask for bigger loans, like for mortgage and automobiles, or even request cards with much more interesting benefits.
If you want to find out more information on credit cards for students, this is the right article for you. Continue reading to know about everything that you need to know.
Credit cards for students
The main difference between regular credit cards and the ones aimed for students is the minimum income. Generally, credit cards for students require a lower income than other types of cards.
Besides, the way of proving your earnings is also much simpler. You just got to do it with an account status or by having a credit account in the bank that you’re doing the requirement at.
For conventional cards, you are asked for the monthly payroll receipts that the company in which you work gives you, with the purpose of verifying that you have the capacity of covering your monthly payments and your total debt.
A credit history is usually not required for this process. Credit cards for students are designed for young people to start their credit life, so it is not necessary to have a record on your credit bureau.
Of course, these requirements vary according to the bank. Some ask you to be over 18, others base the approval on the average monthly balance that you got in this financing institution specifically.
Benefits of credit cards for students
Besides helping you generating credit activity for the first time, student cards count on a lot of advantages for a college attendant’s lifestyle.
They offer promotions, presales and point programs totally aimed for the young. Many online shops and sports, musical and cultural events give preference to users of student cards, with exclusive discounts and offers for their owners.
Wouldn’t you like to have certainty that you will get a ticket to attend that game, concert or theater play that you have always wanted to see?
With the credit cards for students it is possible to get exclusivity for these types of events, or even special sales.
Plus, you will get extra points for some of the purchases you make. You can later use these points as payment method in many establishments.
As a student, there are a lot of needs and not much money. You got to buy books, materials, food and even cover your entertainment expenses.
A credit card will help you during those hard moments in which you have no money left and you can’t ask your parents for more.
It will also aid you in improving the management of your money. If you are already generating an income, no matter how low your salary is, having a credit card will be very helpful to exercise your ability of arranging your money with efficiency.
Every credit card has a limit that you got to spend in whatever you want. The good thing is that, once you get what you need, you can pay it back in terms with interest, or, if you catch many promotions, months with no interests.
You could even pay for your education with the plastic if you run out of money. It’s an amazing tool that will get you out of trouble in multiple scenarios, which is why you have to get one.
How do I choose a credit card?
There are many ways of selecting a credit card. You can go directly to the branch of your favorite bank with your student credential, income receipt, an official ID and a proof of address. That’s everything you need to start.
In the bank, a credit advisor will tell you what’s next in the process of applying for these types of cards. Afterwards, you got to wait from 30 to 90 days so the bank evaluates the possibility of giving you the card.
If approved, you will pick it up in the branch in which you applied for it, or you can also ask for it to be sent to your home address.
Going to the bank is not the only way of selecting your credit card for student. Up next, we present you 2 other options that you got to achieve this process.
Another way of choosing a credit card is with a promotor in your campus. Credit promoters are people who get a commission for the amount of people they help get a card.
They can help you with your process step by step, from the filling of the application form correctly to getting your papers to the bank.
It is also very common for banks to get a stand in school fairs or to install themselves in campus for a few days to promote their options for college students.
Remember to always take care of your personal information. Apply through this method only if you are 100 % sure that your data will be treated with total confidentiality and won’t be used for other malicious purposes.
An easier way of choosing your student credit card is to do it online, applying through the web sites of the bank of your preference.
The advantage of doing it this way is that you can see all of your options and compare them in a matter of seconds, and completely free.
The solicitude is online from start to finish, allowing you to check out the benefits, costs, commissions and requirements of the application for credit cards for students.
Will I get approved for a student credit card?
Banks don’t usually ask for many requirements to apply for a student credit card, and the minimum mandatory income is very low, so approval is very likely.
As long as you got an official identification that is active and to date, a proof of address and a credential that confirms your status as a current student, you will be ready to begin this process.
A common question is asked by those who are not currently active in their college education, in relation to applying for these student credit cards.
Unfortunately, these credit cards are exclusive for those who got an active status in a university institution. This is verified by the bank.
Nonetheless, if you are not a student but you’re looking for a credit card of low requirements, there are many other basic cards that you can have access to.
In this case, we recommend that you check out all the basic plans offered by each bank, that are different in every banking business.
How can a 16-year-old get a credit card
As we mentioned, credit cards for students are only available for college attendants that are over 18 years old.
However, if you want to start saving up some money for your university career, there is also an option available for you. We are talking about authorized users.
An authorized user is a person to which a credit card was issued, that is related to the account of the credit card of someone else.
The authorized user can make charges using the card, but it’s the account holder who is totally responsible of the payment of the bills.
In the United Sates, there is no specific law about the minimum age required for a user to obtain an authorized credit card, although some credit card company establish an age limit.
For example, American Express demands its authorized users to have at least 15 years of age, whilst the First Command Bank sets the minimum age in 16 years.
It is relevant to mention that some banks do not allow these types of credit cards for users that are under 18 years of age.
Other banking options for minors
If a parent is nervous about adding their kid as an authorized user or co-signing a credit card account with a young person, there are a couple of alternatives available in the banking world.
Getting a prepaid card or even a debit card instead of a credit card are great choices that you can consider. These types of cards have the benefit of buying with no money in cash and it would not appear in your credit records.
In order to avoid harming your son’s credit history due to possible irresponsible actions, you can consider these options for minors available in most banks.
Now that you know everything that you need about credit cards for students, make sure to get one immediately so you can afford your college expenses and take advantage of all the promotions that are waiting for you!