How do you apply for a student credit card? Assigning Editor | Credit cards, rewards, personal finance. of . College Students and Credit Score | MoneyLion Before applying, confirm details on the issuers website. One way to get started is to open a student credit card or ask your parents to add you as an authorized user on their credit card account (assuming they manage it responsibly). Scores from 750 to 850 are considered excellent, while a score ranging from 640 to 699 is considered fair, and below that is bad credit. Pulling together the deposit can be an obstacle on a student income, so you may have to save up for it, or ask someone to help out. Be aware that simply being a college student may not be enough to qualify you for a student card. Only 1% of student-athletes receive full-ride scholarships that cover all college expenses, so it makes sense to use NIL income to pay for school. This influences which products we write about and where and how the product appears on a page. Youll make more progress toward eliminating your debt. Some marketplaces charge fees, so its important that students determine whether the cost outweighs the benefit of being promoted by the marketplace. Consider hiring a professional like a financial advisor, and thoroughly vet anyone before adding them to your team. He has decades of experience in personal finance journalism, exploring everything from car insurance to bankruptcy to couponing to side hustles. The approval process for a student card, on the other hand, might de-emphasize credit history in favor of other criteria that suggest youre a good credit risk, including your income and the fact that youre in college studying toward a career. Compare the cost in points or miles to cash, and see which option is best. Your credit scores will depend on your credit history and how you've managed past debt. Cashback Match:Only from Discover, as of April 2023. If you dont have much of a credit history if youre a so-called thin file consumer youll have trouble getting approved for many credit cards. Taxes can be tricky, especially for those who earn NIL income in different states. Here is a list of our partners. Do not sell or share my personal information. But if we need more information about a student credit card application, well reach out and communicate next steps toward getting your student card as quickly as possible. If your student credit card offers a sign-up bonus, planning your application around upcoming expenses can help you meet the bonus requirements without additional spending. This is where an otherwise good payment history comes into play. Capital One Quicksilver Student Cash Rewards Credit Card: Best for flat-rate cash back. But positive installment loans are great for your score. Due to my consistent payment history, low credit utilization and length of credit, I have placed myself in a good position. more in the Discover Help Center. How old do I have to be to get a student credit card? Managing NIL rules and income in addition to keeping up with athletics and academics can be overwhelming. Discover it Student Card Reviews [2023] | WalletHub Keep up with your favorite financial topics on NerdWallet. The best credit cards for college students also come with rewards on every purchase and top benefits like being able to track your credit score over time. Ask your issuer whether you can switch your account to a different card through a so-called product change. office to determine how that money will affect their aid package. 4. Your emergency savings isn't for spending; its purpose is to come to the rescue when you encounter an unexpected expense, such as a broken phone or wrecked car. Should You Use a High-Yield Savings Account to Save for College? If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. on up to $1,000 in combined purchases each quarter. Purchases must be made with merchants in the U.S. To qualify for 2%, the purchase transaction date must be before or on the last day of the offer or promotion. When choosing your first card, keep in mind that store credit cards are (almost) always a bad idea. Heres what I learned and why I am now thanking my mother for the head start. be unable to log in to Discover.com in the future if your If I get $50,000 via NIL activities, I might need to set aside a good portion of that to pay for my tuition next year, says Adam Cocco, assistant professor of sport administration at the University of Louisville. What is a good credit score for a college student? - WalletHub What's a Good Credit Score for a College Student? | Capital One However, there are special rules that apply to credit card applicants under age 21. If youre under 21 years old, you must be able to show on your application that you have independent income (such as from a job, allowance or scholarships and grants), or you must have someone else agree to co-sign your application. MORE: 5 questions on applying for a student credit card. When you close or upgrade the account, you can get your deposit back. For this cohort of earners, NIL money can be used to pay for education expenses, hire professional support and invest in their future. College is the gateway to adulthood, and it's the perfect time to start building your financial health and credit. You must meet other applicable underwriting criteria. College is the gateway to adulthood, and it's the perfect time to start building your financial health and credit. These issuers use alternative methods to evaluate applications looking at income, employment status and assets rather than credit history, for example. website, please turn JavaScript on. Issuers are prohibited from providing cards to people under 21 unless they have proof of independent income or a co-signer someone who agrees to be responsible for the debt if the primary cardholder doesn't pay the bill. MORE: What to do if you can't get a student credit card. Opinions expressed here are author's alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. This information may be different than what you see when you visit a financial institution, service provider or specific products site. However, there are pitfalls to avoid as a college student with a credit card. She is based in Baltimore, Maryland. How to build credit with no credit history, How to remove fraud from your credit report. And all your other purchases still earn 1% cash back automatically, with no limit. What Is a Good Credit Score for a College Student? Now, her parents help her manage the money she earns. You might qualify for a credit card that offers better rewards, a generous sign-up bonus or lower interest. Identity theft and fraud. The credit score needed for a student loan will depend on the type of loan you want to take out federal or private. If you can provide proof of income, it may be time to apply for a card in your name. Free Credit Score Opens in a new window; EXPLORE PRODUCTS. A good credit score for a college student is a score of 700 to 749 on the standard 300-850 credit-score scale. Youll get more value if you choose a card whose rewards align with your spending. For online purchases, the transaction date from the merchant may be the date when the item ships. An authorized user is essentially piggybacking on someone else's credit card account (usually a parent's). Contrary to what we credit card newbies may want to believe, this does not mean that if you opened a credit card less than a year ago and followed all of the above steps, you will have a great credit score and high approval odds. How Can a College Student Build Credit? - Experian Heres how to use your card to your advantage: Buy only what you can afford. To learn more, visit Discover.com/FICO. Your card might have a credit limit of, say, $1,000, but it's not wise to use the full $1,000. Follow Us on Twitter opens in a new window, Like Us on Facebook opens in a new window, Contact with Us on LinkedIn opens in a new window, ACCREDITED BUSINESS opens in a new tab Opens in a new window, Member FDIC opens in a new tab Opens in a new window, Learn Learn For example, if I have a total credit limit of $5,000 and I have a balance of $1,000, my credit utilization rate is 20%. (Even if a customer pays the balance every month, we will charge interest on balance transfers and cash advances the day they post, so you cannot avoid interest charges for these types of transactions.). Unlike most others,it offers rewards. The card details on this page have not been reviewed or provided by the card issuer. Chris Scott Contributing Writer at Tally May 25, 2021 A recent study found that in 2019, college students reported having an average of five credit cards. Even if a purchase appears to fit in a 2% category, the merchant may not have a merchant category code (MCC) in that category. Pre-qualified offers are not binding. But interest rates on these loans are higher than federal student loans and credit-based private student loans. Replace it. 2023 All rights reserved. If your primary concern is the convenience of paying with a card rather than cash or checks, a prepaid debit card can be a suitable alternative. Find out what is considered a good credit score for a college student who wants to ensure that they're a low borrowing. The use of any other trade name, copyright, or trademark is for identification and reference purposes only and does not imply any association with the copyright or trademark holder of their product or brand. Just make sure that you'll have enough money in your account each month so the payment doesn't fail. Minimum interest charge: If you are charged interest, the charge will be no less than $.50. However, this does not influence our evaluations. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion directly. Offer pros and cons are determined by our editorial team, based on independent research. Automate Bill Payments. Becoming an authorized user has long been a popular choice for students aiming to build good credit. They can also be used to build an emergency fund. rjrm-5. up to the quarterly maximum when you activate. A co-signer takes on the responsibility to repay the loan if you cant. She has spent nearly two decades showing readers unique ways to maximize their investments and personal finances. 26.74 Min. If it turns out you have more money going out than coming in, you'll likely find yourself going into debt to stay afloat. browser to access this page. Existing Discover cardmembers and those who have opted out of receiving marketing communications from Discover are not eligible referrals. These companies gather the information used to calculate credit scores. Choosing a credit card with rewards that match your spending will also prove more fruitful for your wallet. OK92033) Property & Casualty Licenses, NerdWallet | 55 Hawthorne St. - 11th Floor, San Francisco, CA 94105. But they must understand this. Improve earnings, maximize rewards and track progress toward dream trips. Start by establishing an awareness of the basics of credit and your financial goals before opening a credit card to help you manage your adult money after graduation. This information may be different than what you see when you visit a financial institution, service provider or specific products site. your credit score. Student Credit Scores | A Guide for College | College Ave Travel rewards (for those with established credit). NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer Access|Licenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc. (CA resident license no. 1 No annual fee, No credit score required to apply * Student Cash Back 4.8 Average of 1790 Reviews See how we calculate our ratings Apply Now Best unsecured cards for short credit histories, 5 questions on applying for a student credit card, isn't enough by itself to qualify for a student card, How to report income on your credit card application, What to do if you can't get a student credit card, The study abroad student's guide to credit cards, 5 Common credit card mistakes that students make and how to avoid them, See NerdWallet's best prepaid debit cards, Do not sell or share my personal information.