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Credit Cards for Students with No Credit

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Credit Cards for Students with No Credit. Upon turning 18, you can take out a credit card under your name. As credit cards are an excellent tool to build credit and give you more freedom with finances with their added perks/bonuses, most people opt for one. Credit cards work using a pre-set limit that the bank will decide on. Similar to a loan, that amount is how much the bank has agreed to lend you each month. Whenever you make a purchase, that expense comes from borrowed money and does not directly come from your bank account.

Read : Best Undergraduate Scholarships for International Students 2023 .

Credit Cards for Students with No Credit.

At the end of each month, it is required that you pay the minimum amount owed on all credit card charges. Financial troubles might arise if timely and appropriate payments are not made. Since timely payments and borrowed funds are the cornerstones of credit cards, banks must guarantee they can rely on their customers to fulfil their responsibilities. If not, they must accept financial loss and take significant measures to get their money back.

Most banks will evaluate applicants based on their credit history because it provides a good idea of what to expect from you. As a high school graduate opening their first credit card, you will realize that you have no credit history to account for. If this is you, do not fret because there are many credit cards for students with no credit available. Specifically, there are credit cards geared toward students that fit this criterion. These cards are a great opportunity for students to develop their credit scores and gain access to exclusive rewards.

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Student credit card

A student credit card is designed for college students allowing those with a credit score to apply. Yet, students might be asked to prompt a co-signer or their source of income that will help pay off monthly bills.

They function the exact same as any other regular credit card. However, they might have lower credit limits and higher APR rates. These numbers fluctuate based on the credit card account you open, so be sure to compare opportunities before making any agreements.

Additionally, some student credit cards provide special benefits such as cell phone coverage, cash back, traveling, gas, etc.

With no additional annual fee, lower eligibility requirements, and student geared benefits, a student credit can be a great first step for you.

Also Read: TU Delft Scholarship 2024 in Netherlands (Study in Holland) .

Secured credit card

Similar to student credit cards, secured credit cards are for those with no credit or damaged credit. If your lender determines your lack of history as a risk, they may approve you for a secured credit instead, as it provides a security cushion for both them and you.

While secured credit cards function like any other card and are offered through well-known credit card companies, they require a deposit to open the account. If you fail to make on-time payments, this deposit acts as insurance and will be seized immediately.

After consistently paying on time and in full, the lender might eventually offer you regular credit with a credit limit increase and better benefits. Regardless, if you are in good standing and decide to close the account, your deposit will be returned back to you immediately.

You Can Apply: Qatar University Scholarships 2024 (Spring) (Fully Funded)

 

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