During my sophomore year of college, I received an application for a Wells Fargo student credit card in the mail. Initially, I received cards for emergencies and start building my credit.
Truth be told, I didn’t know what it meant to get my first credit card. But the card has been a fitting addition to my wallet since I learned about the value of credit cards.
So here are some tips that I think everyone should know before applying for a college credit card.
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How to use your credit card in college
Build your credit
Starting a credit line in college can help you establish a good credit score.
Your credit limit plays an important role in determining your financial strength. A person with a long credit history that shows on-time payments is considered more reliable to creditors and lenders.
Good credit habits can make you more likely to get approved for your first apartment or car.
Plan for emergencies
There’s an old saying “expect the unexpected.”
Having a college credit card allows you to use it as a safety net to help when unexpected inconveniences arise, such as a flat tire or having to catch a last-minute flight home. .
Just make sure to pay your balance on time so you don’t incur interest.
Earn rewards
There are many perks to having a credit card, including protection on purchases and travel. You can also earn cashback rewards, depending on the card you choose. They can be redeemed to your savings account or to travel on the cheap.
There’s a lot of do’s and don’ts when you get your card, so understand 10 commandments about credit card rewards is necessary.
How to apply for a credit card
Check your credit score
Know and understand your credit score will help you understand your chances of getting approved for your first credit card. There are many cards that will approve college students who may not have credit, such as security card allows you to build credit with the deposit acting as your line of credit.
There are several ways to check your credit score. Depending on your bank, you may be able to get access to your FICO score for free. If your bank does not have this feature, you can access AnnualCreditReport.com. You can also Get a free annual credit report from the three major credit reporting agencies (TransUnion, Experian, and Equifax).
Application document collection
Different cards have different requirements but you will definitely need two things – proof of age and proof of identity.
To have a card fully in your name, you usually have to be 18 years old. If you are under 21, you must also show that you can pay for yourself. If not, you may need a co-signer. That co-signer must have a good credit score and must be able to demonstrate that they have enough income to pay in case you miss one.
To prove your identity, some issuers may require you to have documentation showing your US address. Others may require a Social Security number or an Individual Taxpayer Identification Number.
Submit your application and wait
Depending on the credit card issuer, you may be able to apply online, in person, by phone, or by mail.
After applying for a credit card, the next step is to wait for a decision. Based on federal guidelines, issuers are required to notify you of their approval or disapproval within 30 days of your submission of the application. While you wait for a response, think about how you’ll use the card, create a budget, and set up a repayment plan. For example, I use my credit card to gas, grocery and dinner with you.
If you are denied, look for a letter stating the reason.
Set a repayment plan
One of the best ways to get the best out of your card is to only charge what you can afford. As for your repayment strategy, make sure to budget to at least make the minimum payments. However, you should keep your credit usage close to 0% if possible as it will increase your credit score.
College credit cards to consider
When comparing different credit cards, it’s important to think about how you can benefit from the card in the first place.
You can choose a guaranteed card if you’re building or repairing your credit, or a cash-back credit card if you want a percentage of your money back.
Understand that there is no perfect credit card, but there may be one card that meets your goals better than others, such as building credit or earning rewards.
Student credit card
One student credit card is the easiest card to get approved when college students apply for their first card with little or no credit history. Student credit cards work like most credit cards. One big difference, however, is that many cards don’t have the features and rewards that rewards credit cards have.
On the bright side, although all late payments will affect your credit, you may find that some student cards are more forgiving of late payments by not charging late fees. .
The Student Rewards Journey from Capital One can be a valuable tool to earn some rewards.
Cashback credit card
In a word, when using cashback credit card, you get a percentage of what you spent back. Think of it as a discount or partial incentive. The Capital One SavorOne Student Cash Rewards Credit Card is our top recommendation for most college students.
Cardholders can enjoy unlimited 3% cashback on dining, entertainment, popular streaming services, and groceries. For example, if I spend $200 on dinner, I earn $6 in cash that can be used for another purchase.
Secured credit card
One secured credit card is a great choice if you’re building or repairing credit, or if you’re having trouble getting approved for a rewards card. Your cash-backed card will be used as collateral in the account. That means users have extra security in case the cardholder is unable to make a payment.
Discover it Secured credit card is Our top secured credit cards to earn rewards. With no annual fee, you can get 2% cash back at gas stations and restaurants. And, as a cardholder, you can also check your FICO score for free.
Discover it Secured credit card information has been independently collected by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Key point
As a college student, I understand that the word “credit” can trigger a variety of emotions – fear about falsifying your credit early or the excitement of adulthood. Credit cards are often accompanied by negative misperceptions, especially for college students.
But think of it this way: Opening a credit card in college is a great way to build your credit history. It can have a positive effect on important milestones you may want to achieve after graduation, such as buying your first house or car.
Remember to be patient with yourself, as the world of credit can be overwhelming for newbies.
And lastly, always do your research and use your card responsibly.
