Guide to Obtaining a Student Credit Card: Essential Information
This comprehensive guide explains how students, including international ones, can apply for credit cards. It covers initial steps like authorized user options, secured cards, and tips on managing credit responsibly. The article highlights essential requirements such as income proof and SSN for international students, along with best practices for maintaining good credit and avoiding pitfalls. Whether starting with a secured card or applying after building a credit history, students can learn actionable steps for successful credit-building during their academic journey to secure future financial stability.
Establishing a credit record is vital for many financial opportunities, such as securing housing or loans. However, building a strong credit profile requires owning a credit card first.
So, where does this process start and how does it progress?
Applying for a Student Credit Card
To qualify, you need to show proof of income and employment. Typically, you must be at least 18 years old to apply for a student credit card.
Initial Steps
If you lack independent income, consider being an authorized user on a family member’s credit card, such as a parent or older sibling. Ensure your activity is reported to credit bureaus and always pay bills on time.
Another option is a secured credit card, which requires a security deposit that sets your credit limit. Despite the deposit, it is reported like a standard credit card, helping you start building credit history for future use.
Having a Job
Apply for one or two cards with low interest rates. Avoid applying for many cards simultaneously, as multiple rejection attempts can harm your credit score.
If you’re not eligible now, continue as an authorized user or secured cardholder. Once your credit improves, reapply. Opt for cards with minimal fees and no annual charges to keep costs low.
Enable alerts for payment due dates and pay bills promptly to avoid late fees. Keep credit utilization below 30% and pay as much as possible each billing cycle.
International Students and Credit Cards
International students in the U.S. with work-authorized visas may qualify for credit cards.
Before applying, obtain a Social Security Number (SSN) by providing identification, proof of age, work authorization, employment, and income documentation, and completing Form SS-5.
Once you have an SSN, applying for a credit card becomes easier. Having a steady job and a bank account increases your approval chances. Use your school address as your correspondence address in the application.
