When it comes to credit, college students often find themselves at a disadvantage. Factors such as a short credit history and high debt can make it tough to qualify for a credit card.
That’s a problem, because a credit card can be a great tool to help build credit. And good credit can come in handy if you want to qualify for a low-interest auto loan, move to a new apartment or even buy a home someday.
So if responsible use of a credit card can help you build credit, but qualification for a credit card can depend on credit history … how do you get started?
Applying for a student credit card, and using it responsibly, is one way to get started on the right track.
What is a student credit card?
Eric Black, financial coach with Financial Freedom Mentors, explains what makes student credit cards different from other types of credit cards.
“Typically, student credit cards have much lower credit limits than other credit cards,” he says. “However, the requirements to get approved are also typically less stringent, since most students have little to no credit history.”
Student credit cards can also come with financial education, tools like payment reminders and rewards designed especially for students, such as a cash-back boost for making payments on time or for getting good grades.
So yes, you may be able to apply for a credit card even if you’re a student with little to no credit. With that in mind, let’s take a look at some of the best student credit card options available.
What if you can’t qualify for a student credit card?
Even if your current credit situation makes it difficult to qualify for a student credit card, you still have options.
People with limited or no credit may still qualify for secured credit cards.
Black says that secured credit cards are a great place to start, because they help “prevent overspending and teach good spending habits early on.”
Remember: If you’re struggling to build credit from scratch, you’re not alone. Check out the Credit Karma Guide to Building Credit for additional tips to help get you on the right track.
Bottom line
Bad credit doesn’t have to stick with you forever.
Students with little or no credit — yes, even some students without a Social Security number — may have some options to help get things started.
Your first credit card may be a student card with high interest rates and a low credit limit, but with responsible use you may be able to work your way up to other cards that better suit your needs — and better reflect your financial progress.
Still unsure of where to go from here? Get started today by checking your VantageScore 3.0 credit scores from TransUnion and Equifax for free on Credit Karma. The sooner you get the ball rolling, the sooner you can work on getting your credit in A+ condition.