How to Find a Student Credit Card Without Credit History?
It has never been more important to know how to pick the ideal credit card for students who do not have a credit history. In February, 2010, new consumer credit laws made it more difficult for students to obtain their first credit card.
Some students and many credit issuers did not like the new rules imposed on granting credit to students. However, the purpose of the new laws is to keep students from accumulating credit debt that can damage their new credit file.
Bad credit affects almost everything you do as an adult. When you rent an apartment, the agent runs a credit report. When you apply for auto insurance, a bad rating can result in high costs for the insurance.
Buying a house, buying furniture, a new car and even a checking account application will be a problem for you if you have established a bad credit history.
There are practical aspects to choosing the best credit card when you are a college student. The greatest benefit is that lenders do not expect you to have an income when you open a student account.
If you wait to acquire your first credit card account until after you graduated from school, you will be required to show sufficient income before being approved.
There will never be a time in your life when credit is as easily available as when you are a student. If you know how to pick the best credit cards for students who do not have a credit history as yet, you may be starting a credit account you will use for many years.
What Rewards Do You Need?
Rewards are exciting because they are free bonuses we earn for doing nothing more than using our credit card.
However, those rewards and bonuses that are part of many credit card offers are only valuable if they provide benefits you can use. There are two reward programs in particular that are great for students who use credit cards.
- Gas Discount Reward - If you have your car at school, the cost of fuel is probably a major expense in your budget. By applying for a student card that provides 5% discount or cash back on gasoline purchases, you'll have a reward to appreciate. When a gas discount is what you seek, find a card offer that allows the widest choice of gas companies where the discount is honored.
- Good Student Rewards - This option is rapidly becoming popular with both parents and with students who do not have a credit history. Good grades and good behavior are rewarded with bonuses and special rewards that are not available to the general public. A good student record combined with a good payment records can even result in lower interest rates.
Choose a Major Credit Card Company
Smaller lenders may offer what seem to be great deals on their own credit card but if the card is limited to certain merchants or locations the value to you will be limited.
Look for Reviews Online
This can be tricky as we all know you cannot believe everything you read online. However, there are forums and blogs where various credit cards and credit issuing companies are discussed and compared.
Pay special attention to complaints about customer service and to charges that the credit lender frequently raises interest rates or applies hidden fees that are undeserved.
Remember there are two sides to every story. Chances are when you read a few reviews online you will quickly begin to judge which are honest reviews about credit problems and the bad service of certain banks and which are complaints by those who managed their credit poorly.
Ask for Recommendations
Ask friends and your parents which credit card companies they most enjoy working with. There is no better qualification than a testimonial from a satisfied customer. Often, you will find the ideal student credit card among these companies.
If you ask how to pick the ideal card for students with no credit history, you will find the answer is to choose the best credit card.
A student is not expected to have a credit history. As a student, this may be the only time in your adult life when you are able to obtain credit without previously using credit. Take advantage of that.