The Best Student Credit Cards - How To Find Them

Students know that credit cards can be a blessing – or a curse.  Too many undergraduates make poor choices about credit cards early in their school years and then are hounded by credit problems for years after graduation.  Given the difficulties that can sometimes surround student use of credit, don’t leap in too soon!  It is essential that you carefully consider what might be the best student credit cards for you.

Overall Considerations

Students are generally new to the credit arena and, as such, have special circumstances that may be determining factors in their quest for the best student credit cards.  Two principle issues that impact students are:

• Lack of History With Credit:  Many students have no history with credit, making it extremely difficult for them to convince credit card vendors that they are a “good risk.”
• Lack of Employment History:  Frankly, credit card providers are looking for customers that can demonstrate they bring in cold, hard cash through a job.    This can be difficult for students who spent their time doing the hard work of school, as opposed to the work place.

How Do I Get That “First Card?”

Clearly, for many students the “best student credit cards” are “any credit cards.”  The nature of the credit industry makes it extremely difficult to get credit if you do not have credit.  It’s a “chicken and egg” game that you’ll need some special strategies and rules to play well.

• Start Small:  Consider starting with smaller credit cards (such as gas cards, department store cards and the like) that you can pay off quickly and easily every month.  Another option is to purchase an item such as your class ring or other school related “supplies” on credit.  Just be sure that the vendor offering the credit reports to the credit bureaus.
• Consider a Secured Card:  Many companies offer “secured” cards and these can often be the best student credit cards for anyone stuck in the credit “catch-22.”  Secured cards require that you place a certain amount in a savings account that the bank issuing the card will have access to in case you default.  So, for example, you might post $500 in a savings account and receive a secured credit card with a $500 limit.
• Look to Alumni and Other Organizations:  Many College-affiliated groups offer a branded credit card, which can offer some of the best terms and acceptance rates for students.
• Compare and contrast options at a site like Apply For A Credit Card Now.com .  The section of their site devoted to the best student credit cards provides a range of options – and opportunities!

Using Credit Wisely

The most important lesson to remember?  The best student credit cards are the ones that you will use wisely.  You’re starting off with a great education.  Start your financial life off equally well by establishing great credit history.  Use your first credit cards sparingly and always pay them off on time.  Ensure that the balance you carry on a month-to-month basis is only a limited percentage of your overall income.  If you follow these rules, you’ll soon be getting more credit card offers than you’ll ever want or need!