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As a student, having a credit card can be a great way to start building your credit history and learning how to manage your finances. However, with so many credit card issuers and options available, it can be overwhelming to know where to start.
One option to consider is student credit cards. These credit cards are specific to college students with little or no credit history. Student credit cards are similar to standard credit cards in that they allow you to borrow money and pay for your purchases on a monthly schedule. However, student credit cards offer rewards geared toward the lifestyles and expenses of college students and have easier eligibility requirements for full-time students to meet.
Choosing the right student credit card can benefit you by helping you build good credit. The Consumer Financial Protection Bureau estimated that 11% of the U.S. adult population is credit invisible or has no visible credit history. With a higher credit score, it'll be easier for you to get approved for an apartment, take out your first car loan, and even get hired for jobs once you graduate.
In this blog post from Bold.org, we'll discuss what a student credit card is, the benefits of opening a student credit card, and how to use a student credit card responsibly while you're still in school.
Don't forget to check out other blog posts on our scholarship blog to learn more about personal finance for students, including information about creating a budget for college and how long student loans stay on your credit. Also, create a free Bold.org profile today to access hundreds of scholarships to help you save money as a college student.
Benefits of a Student Credit Card
- Eligibility Requirements
The primary difference between student and traditional credit cards is the eligibility requirements. Student credit cards are intended for those still in college, so limits around credit history and income requirements are easier for applicants to meet. As a result, student credit cards are a great option for a first-time credit card.
To qualify for a student credit card, you must be a U.S. citizen or permanent resident and eighteen or older. Most standard credit card issuers require people over 21 to open a traditional credit card.
If you are under 21, you can report the amount of another person's income that is regularly deposited into your personal bank account as part of your income. So, if you're still in college and receive a monthly living stipend through a scholarship or allowance money from your parents, these can be reported as part of your income for a student credit card.