Credit Cards for College Students

So you’re in college and you need a credit card. Well, you are in luck. We are going to provide you with the most up-to-date information on where to find credit cards for college students. The good news is that you can get a credit card as a student. In fact there are many lenders (including CapitalOne) that cater unique programs just for you!

You may be wondering where to begin. First, understand that traditional credit cards are based primarily on one factor: your FICO credit scores (you have a FICO score with each of the three main credit bureaus; Experian, Transunion and Equifax). This score has a range between 300 – 850.

Credit Cards For College Students

The higher the number, the better. Typically in today’s credit tight market, you want to have a FICO score above 700. But you are a college student! So most likely your score will not be this high. In fact, it’s quite possible that this is your first credit card and you do not have any FICO/credit score yet! That’s okay. We are going to help you get approved and make sure you work with lenders and banks that cater to people with new credit or even bad credit.

How do you find out your FICO score? You can visit the myfico.com website to get your scores. This process may cost money (or sometimes they have free trials), but in the long run knowing your fico score can save you thousands. For example, did you know that the majority of credit reports contain errors? Its important that you take a look at your credit report and FICO scores to make sure there are no errors.

Free credit report.
There is a program available to you that enables you to look at your credit report for free. The official website is https://www.annualcreditreport.com. This site will allow you to look at your credit report to verify its accuracy and to learn what makes up your credit score. However, you will not get access to your FICO score using this site. It’s still worth it to look at the free report. It’s very in depth and will walk you through your credit report step-by-step.

Credit Cards for College Students

As a college student seeking credit, you want to be careful not to get sucked into gimmicks that many credit companies offer. For example, there are some credit card companies that offer incentives just for applying! Be cautious of the program that’s being offered and make sure you ask for the disclosures and terms and conditions of the offer. All credit cards must have this information readily available. Using this technique will allow you to understand what you are actually getting into before you sign on the line!

Proceed with caution when getting new credit

College students need money just as working people with families need money every day. The only difference is in the amount of money needed. (Check out this student budget calculator here, it may help you determine just how much money you will need.) Big banks go out of their way to lure students into applying for their credit cards. It is their business and that is how banks make money. In fact,banks make sure that they never run out of credit cards for college students.

Big banks have a number of credit cards that are specifically directed at college students. However credit cards for college students can lead to a debt trap from which there is no way out. The banks entice students with low interest rates and longer interest free periods but in the end the debt and the interest on the debt begins to spiral out of control. College students are still too young to know how to handle their finances and are at an age when they are most vulnerable. Most of these students end up with large debts which they have to repay even several years after they leave college. It is not a pleasant way to start life after college.

Credit cards for college students are readily available and one only has to apply and the approval rate is almost 100% and very quick. This quick approval ensures that students do not get much time to think about their spending habits. Most students do have part time jobs but that little income almost never covers the credit card expenditure. They never see the danger until it is too late.

Credit cards for college students is not a bad and ugly idea. But it is good only when students are also taught how to use their credit cards wisely. In fact it can be converted into a great learning experience before these students go out into the real world. Learning how to handle their income and expenditure through the use of credit cards can be a great way to ensure the financial health of students in their later years. College credit cards are bad only if used unwisely. They can be effective tools for a better financial future for students once they learn the finer points in the use of credit cards.