Whether students are on campus or homeschooled this fall, there are still a lot of costs to return to school. And when checking accounts are no longer available, many of these purchases must be debited to the credit card. But it’s not always easy for a student to get one – especially if they don’t have a steady income.
The reward is a catch-22: important to have but hard to come by – unless you already have one. Student credit cards solve this puzzle by providing options for those with a limited credit rating. Credit card companies take the plunge in the hope that most students will work full time and remain profitable customers for years.
Most credit cards require applicants to have a good credit rating (around 650 or more) and at least several years of credit worthiness. However, you don’t need one to get a student credit card, although some evidence of experience and financial responsibility will help. The publisher checks income sources – including from part-time jobs or parental savings – as well as information on checks and savings accounts to get an idea of the applicant’s savings and expenses.
Apart from the lenient eligibility requirements, the best student credit cards offer the following features:
Special rules for new loans as a minimum late payment fee and no APR penalty
Lower credit limit – usually between £ 500 and £ 2,000
“Fair” APR – usually between 15 and 20%
We have evaluated 19 credit cards offered specifically for students. We have selected four cards that stand out on a number of criteria including APR, credit approval, cashback rewards and easy eligibility requirements. Check out our photos below, as well as some answers to frequently asked questions about student credit cards at the end of this article. We will update this list regularly.
How do student credit cards work?
Student credit cards offer individuals with limited or no credit the opportunity to start building a credit history. They usually have a lower credit line than regular credit cards and have no annual fees. And they often have features that are useful for beginners, including delaying payments, increasing credit limits over time, and resources for credit training. Compensation amounts can be lower than standard refunds and travel credit cards, making student credit cards a lower risk and financial instrument for compensation.
Is a Secure Credit Card a Good Choice for First Time Credit Cardholders?
Secure credit cards provide a way to build or repair credit. However, they are more suitable for people with bad credit ratings than non-credit ratings. Secure credit cards also require prepayment of your credit limit. For a £ 1,000 loan, you have to give the bank £ 1,000. In fact, the bank will return the money on your own – sometimes for an annual fee or high interest rates. If you have no other options, a secure credit card can be used. However, this shouldn’t be the first choice for a starter loan.