Credit Card for Students
You may not need a long credit history or excellent credit scores to qualify for a student credit card, which is commonly used by college students, depending on the issuer and the product.
You may be able to help build credit by appropriately utilizing a student credit card. When it comes to things like buying a car or leasing an apartment, your credit can be significant. Some student cards may have cheaper or no yearly fees and include features that students find appealing. For example, the Capital One SavorOne Rewards for Students card offers unlimited 3% cash back on dining, entertainment, and popular streaming services, as well as at grocery shops, plus 1% cash back on all other transactions.
A student credit card functions similarly to other types of credit cards. If you hold a balance on your card, you may be required to pay interest.
Credit Card for Retail Stores
A retail store card, according to the Consumer Financial Protection Bureau (CFPB), is another option you might consider if a secured card or a student card aren’t the best fit for you.
A retail store card, like any other credit card, may appear on your credit report if it is reported to the credit bureaus. And, by making frequent, on-time payments on the card, you may help build your credit history.
Keep in mind that retail store cards may only be valid in the store or group of retailers associated with them. You can learn more by reading the terms and conditions on the card.
Other Options for Obtaining Credit
There are additional alternatives besides applying for specific types of credit cards on your own that could help you get credit. You may also be able to utilize them to build credit. If you have the option, you might become an authorized user on another account or ask someone to co-sign a credit card with you.
Authorized Individual
When you become an authorized user, you receive a card connected to an existing account that you are authorized to use. The account could be that of a friend or family member who is prepared to add you to their credit card account.
You’ll acquire your own card as an authorized user so you can use the account’s credit line to make purchases. However, the primary cardholder is ultimately responsible for the account.
Although it is crucial to confirm, many issuers disclose approved users to credit bureaus. Being an authorized user could help you develop your own credit history if the issuer reports authorized users and the card is used appropriately. Being an authorized user is also an excellent method to learn how to manage a credit card.
There are further advantages for the primary cardholder. When everything is on the same account, it can be easier to keep track of your expenditures. Depending on the card, the primary cardholder may get incentives for your purchases.
Keep in mind that negative information, such as late or missed payments, can have an impact on the credit of both the primary cardholder and the authorized user.