Helping Students Get A Bank Credit Card
Monday, May 18th, 2009
A bank credit card can mean the difference between having extra money in case of an emergency and being forced to ask your parents for money. College is very expensive and even with an education loan, there can be expenses that you did not budget for when you were saving and preparing for school. It is good to have a backup source of money in case you need more for books and living expenses, or for the unexpected.
If you have applied for unsecured credit cards or a bank credit card and have had no luck with those, you may be running into the same problem which many people with little or no credit scores face. You must have credit in order to achieve credit. This can be very frustrating for those who have either tarnishes on their credit rating due to paying bills late, or don’t have a credit history at all.
If having a credit card is your goal, then you need to start off small. There is a card for bad credit that many people utilize. It may require a deposit to assure the lender that funds are available to match the credit limit. Many people who have bad credit or no credit rating will utilize these cards, as a way to start or re-build credit scores. The downfall is being forced into paying high interest rates and a yearly membership fee that is often ridiculous. Use these as a last alternative.
If you are determined to have a credit card from your bank of choice, then you may want to consider asking your parent to co-sign the application with you. You will have the card in your name, but your parent’s credit score will determine your interest rate and your credit card limit. This is a great way to get a 0 APR credit card and start to build your own credit rating.
Once you have brought your credit score up and have a bank credit card issued in your name, then this is not the time to become irresponsible. You must make sure to keep your credit card balances low and always make your monthly payment on time. Even being a few days late can affect your score. If you can manage it, you should always pay more than the minimum balance. A good credit score can provide you with the potential for a great future and one where jobs, homes or material possessions are not denied based on a three digit score.