If you are a student who would like to own your first credit card, approval is easy since credit history is not a requirement. In fact, this is the best time for you to begin building your personal credit history. Are you ready to be a credit card owner?
Instant Approval Credit Cards for Students
According to the new Credit CARD law, those who are below the age of 21 must have a co-signer to get approved. You can ask your parents or guardian to co-sign your credit card account on your behalf. Of course, your co-signer must have a good credit history to qualify. On the other hand, if you have an independent source of income, you can apply for a student credit card without the aid of a co-signer even if you are under 21 years old. But you do have to show proof of it.
For the rest of the students, many issuers offer instant credit card approval. That means you can submit your application form online and expect to get a response only minutes after your submission. Within 4-5 banking days, your instant approval student credit card will be delivered to you via registered post mail. Afterwards, the student credit cardholder must call up the customer service number to verify his/her identification and have the account activated.
Are You Ready to Build Good Credit?
Building good credit history using your student credit card will largely depend on how you manage debt and credit. Most instant approval student credit cards come with a limit so you need to be very careful about how you use your credit line. Remember that maximizing your credit limit can badly pull down your credit rating.
To build credit history, you need to use your student credit card regularly as well. Just keeping it in your wallet or storing it in your safe box will not build your credit history. Nevertheless, that doesn’t mean you should use your credit card indiscriminately. On the contrary, you need to use your student credit card for important purchases only. More importantly, you should consider if you will be able to pay back your charges in full and on time before charging purchases.
Make it a habit to check your credit report at least once a year. Take advantage of your privilege to receive one free copy of your report each year from annualcreditreport.com, a website especially designed for consumers to receive their annual free reports from each of the three credit bureaus.
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