8 Tips for College Students Wanting to Apply for a Credit Card

High school life is over. You've moved away from home and you're starting a brand new chapter in your life with college. Independence feels great, but it's sure to feel greater if you've got your own credit card, don't you think?

Here's what you can do to make the credit card application process as hassle-free as possible.

1. Prepare proof of identification. Have your photos ready as well as all your valid IDs. Credit card companies will always have to verify that you are indeed who you say you are before you can proceed any further. IDs where your age is stated are also preferred because you have to prove you're at least 18 years old as well. If you have any bills under your name, take them with you as well because they can serve as proof of residence.

2. Prepare proof of schooling. Credit card companies generally prefer to issue credit cards to students who belong to accredited colleges and universities. If you belong to such a school then you're in luck. If not, you can compensate it by showing your previous records - if they're excellent, that is. Just like when you're applying for a driver's license, issuers also take academic and extra-curricular excellence as a sign of maturity and trustworthiness in your part.

3. Prepare proof of financial assets. Student credit cards tend to charge higher rates than usual, but you might be qualified for lower rates if you're already working or you have money and a bank account in your name. Either way, make sure you can submit documentary proof of your work or assets.

4. Speaking of interest rates, the first thing you should look for in a credit card is the lowest possible interest rates. This might mean not being able to enjoy a reward-based credit card, but at your age, you might not yet afford the higher rates charged by credit cards offering reward points. If you see a 0% APR credit card, make sure to check how long the offer would last and what the standard APR is afterwards.

5. A number of credit cards allows you to apply even without a cosigner, but some of them tend to have stricter application requirements. If you don't want to go through the trouble of submitting additional requirements, simply ask your parent or legal guardian to act as your guarantor when you apply.

6. Always look for a credit card that allows you to manage your account online. This will allow you to check your account balance regularly and know when and how much you have to pay for your credit card every month.

7. There are a few additional perks that you might deem necessary. If you are fond of shopping online, look for a credit card that offers you fraud liability guarantee at no extra cost. Other credit cards offer you "thank you" points for being a prompt payer.

8. Now that you know what you need from a credit card, find one that matches your preferences and then submit your application. Remember to be courteous and answer all their questions honestly. You're sure to have your application approved in no time. Have fun with responsible swiping!

Things to Know About a Student Credit Card

Financial needs of college students are unique. Credit card companies have taken a notice of this and come up with student credit cards. It has become much easier to acquire student credit cards than ever before. Many students get calls or e-mails from several credit card companies urging them to purchase their credit cards.

If you are a student and get such calls to buy a student card, you need to remember that it is easy to accept the offer, but it is important to be careful while selecting the best student credit card. Choosing the ideal student card is about evaluating your requirements and weighing those needs against the offers that credit cards companies are providing.

Also, keep in mind that cards are very different from standard credit cards. You cannot use them to buy every other thing. So, begin by managing your finances wisely.

Basic Differences between Student and Standard Credit Cards:

Credit card companies do not charge any annual fee for student credit cards. However, if you are applying for normal cards, you have to pay speculated charges each year as annual fees.

To obtain standard cards, you need to be employed and there is a minimum income criterion for it. Whereas, to acquire student cards, it is not at all necessary that you be employed and there is no such minimum wage criterion.

You do not need to bring someone as signatory in case of student credit cards but in standard credit, you have to provide a co signer. Apart from this, there are zero percent introductory fees on student credit cards and after this introductory tenure ends, you will have to pay minimum APR (Annual Percentage Revenue). However, standard credit cards come with some introductory fees and have a high APR.

Students can access as well as manage their accounts online, without paying any initial additional charges. An exactly opposite rule applies for standard credit cards. You also get gifts or rewards as cash back, points, if you use student credit cards.

After selecting the right student credit card, do not hit the nearby city mall and use your card to buy everything that appeals you. Unnecessary splurging is the easiest way to hamper your credit. Buy only what you need and make sure to pay off the bills on speculated time. This will avoid accruing of late payment charges.

Maintaining a List:

You need to keep a track of all the purchases you made using student credit cards. Maintain a list on the computer and when the bills arrive, compare the amount (on bills) with the amount in the list. See if it tallies or not, because occasionally companies charge customers with double the amount for a product. If this happens, contact your company immediately and inform them.

These are certain important aspects about student cards, which one needs to know while applying for any card.

By Tom Tessin

Establishing Good Credit Habits with a Student Credit Card

Young people starting out in today's marketplace need a couple of items to succeed. One is a bank account that offers credit and savings privileges. The other is a student credit card. Earning money and setting aside a portion each month for savings is an excellent way to utilize the money a young person earns. In order to build a credit history, though, cash purchases are not enough. Banks require a credit history before you will be allowed a loan for the purchase of a car or a house.

A good way to develop a credit history is through the responsible use of a student credit card. When you get a credit card instant good standing does not come automatically, though. By establishing a regular pattern of making purchases on a student credit card and then paying them off conscientiously, it is possible to build an impressive credit history. Good credit provides greater future purchasing power through increased lines of credit.

When you are looking for a new credit card, instant approval can take all the waiting out of the approval process. This will enable the credit card company to issue the card much sooner than using normal processes, and gives you the opportunity to use your new card sooner rather than later.

Under normal circumstances, if you are a new borrower and have no credit history, you might be required to have a cosigner in order to get a student credit card. Some banks that offer credit cards will reduce their risk by requiring you find an adult with a good credit history to sign your credit card application with you, with the understanding that if you default on the card, the cosigner would be responsible for paying the balance. It can be difficult to find an adult that would be willing to cosign, so you will want to examine each credit card offer for their requirements prior to applying.

Bank of America offers a student credit card that requires no cosigner, however. Once you have that credit card, instant buying power is yours. The student card from Bank of America also comes without an annual fee, and offers the convenience of online banking as well.

To be eligible for a student credit card, you will need to be enrolled in some kind of educational institution and be older than eighteen years of age. A credit card, when used reasonably by a student, can be a great tool to help you build your credit history so that it reflects well on you.

Source: Associated Content

Top Credit Cards for College Students

What Options There Are and What You Should Look for in a Card

One of the major components of a credit score is how long you've had a credit account; in the past, students often piggy-backed onto their parent's accounts, but recent changes to the formula require that individuals be the primary account holder. As a result, having a credit card as a college student can be not just a convenience and a valuable way to learn how to manage your money, but also is necessary to establish your credit and make it easier to rent apartments, buy your first car and so forth after college.

Before you start looking at which card is best, a few basics about credit cards. While it goes without saying that paying off your credit cards each month is a necessity to avoid debt and maintain the good credit score you're trying to establish, 80% of undergraduates do not do this and leave college with a few thousand dollars of debt. (For more figures, see Nellie Mae's most recent survey on Undergraduate Students and Credit Card usage given in 2004.)

A college student with no credit should not have to pay an annual fee, but will likely have a high APR. You should pay attention to this number because even if you plan to pay off the bill each month, you may slip up; so long as you pay it off the next month, don't worry. Credit cards, though, don't make money just on lending you money, but through late fees and 'over the limit' fees. As a student with a new account, you'll probably have a pretty low credit limit; that's a good thing since it probably corresponds to your bank account. (And mine...) However, the cards won't stop you from spending over that amount -- they'll just tack the charge on. So, monitor your spending.

Also, late fees can be easily avoided if you set up a monthly payment plan. You can either set one up to pay the minimum (thus protecting you from the possible overdraft fee, which then triggers a missed credit card fee...) or the full amount each month. By doing this, you insure that you never miss a payment and don't have to worry constantly about your monthly bill. If you set the card up to pay the minimum every month, you can also avoid the tricky due dates most credit cards employ -- the date changes each month. If the minimum is paid every month automatically, you can pay the full balance every month on a set day (the 15th) and won't have to worry about forgetting a payment, or only paying some of your bill.

Here's a selection of cards that will provide a good fit depending on what you're looking to get out of them. There are three major companies which offer student credit cards: CapitalOne, Citibank and Discover. Each of these has a number of cards to choose from, allowing you to choose a card that best matches your spending habits -- great both for racking up rewards and spending them.

Capital One Options

Capital One's Student card ("Capital One No Hassle Cash Rewards for Students") gives you 1% cash back on purchases that you make -- and there's no limit on the cash back. In addition, they'll give you discounts when you shop through their portal, a limited time 0% APR on purchases and a 25% annual bonus on your reward. So if you spent $2000, earned a $20 reward they will give you an additional $5 at the end of the year. The catch is an annual fee ($29), though the variable APR is 16.4%. Should you get it? If you like cash back, consider both your spending habits and what sort of limit they'll give you. A $200 credit limit means you won't be able to spend enough money to get a reward that will pay for the annual fee.

Capital One's best feature is their "CardLab" where you can build your own card -- even if you are a student and have a limited history. Here, you set up what APR you want, rewards you're interested in and even a cool design. Should you get one? When you start plugging the numbers in, you find that because you're a student, your options are more limited. You can get a decent APR (15-16% range) and points back, but you'll have to pay a minimum fee. Their student cards are a better bet -- but keep it in mind for your next card.

Capital One has a number of cards targeted for students, but they also have a separate category for people who have little credit history, or ones that need improvement: CapitalOne Platinum. These do not come with rewards, but do offer you the standard benefits of a card: credit history, $0 liability for unauthorized purchases, a low interest rate (8.4% after the introductory 0% for 6 months), roadside assistance, travel insurance, etc. They also have lower credit limits (from $300-3000). Should you get one? If you want to see whether you can manage a card this might be for you. But it does carry a $39 annual fee and you can do better. But if you don't think you'll pay the balance off regularly, the APR can't be beat.

CitiCard Options

CitiCard offers 4 credit cards to students, giving you a wide range of choices. Their basic platinum card comes in two varieties: the basic card (0% introductory APR for 6 months, 12.5% variable APR, no annual fee, no rewards) and the Dividend Platinum Select (5% cash back at select stores for 6 months and 2% afterwards; $300 reward limit; 14.5% variable APR; no annual fee.) Both of these are available as Visa or MasterCards, but really that's a personal choice. Should you get one? The dividend card is worth looking at if you want cash back and you probably wouldn't spend enough money to go beyond the $300 limit. They do have options that will give you better rewards, though.

CitiCard offers an additional card, affiliated with MTV, called the "Citi mtvU Platinum Select Visa Card" which earns ThankYou points (Citi's rewards program which gives you gift certificates -- $100 for 10,000 points --, airline tickets -- domestic ticket for 25,000 points --, and even iPods, charitable contributions or statement credits). It rewards you both for good behavior (good GPA, paying your bill on time) and for going places college students go (bookstores, movie theaters, etc) as well as all your purchases. They also have special discounts with particular popular stores and specials coordinated with MTV. There's no annual fee, has a 14.49% variable APR, and a 0% APR for the first 6 months on transfers and purchases. Should you get one? This is the best student card out there. It gives you a chance to earn real rewards and also rewards you for the things you should be doing anyway (like paying your bill on time). In addition, their rewards program is consistently one of the top rated in the business.

CitiCard's other student card is called the "Driver's Edge" and has no annual fee, but a higher APR (16.49% variable). It comes with the ubiquitous 0% APR on purchases and balance transfers for the first 6 months. The main attraction is it gives you a 3% rebate on certain purchases and a 1% rebate on all purchases. Should you get it? If you're commuting and living off-campus this is a fine card, but think about where you shop most frequently -- the extra rebate probably isn't worth it unless you're spending quite a bit of money a month on basic necessities. But if you buy groceries for all your roommates, this is the card to get!

Discover Card Options

All Discover credit cards include Cashback Bonuses, which can total up to 20% of the amount of money you spend. To get these, you'll need to shop through their portal, which just adds an additional step to your browsing. Their student card offers the following features: popular purchases (i.e. gas, groceries, etc -- these usually rotate) earn 5% cashback bonus, every purchase earns a minimum of 1% cashback and the online purchases range from 5-20% for select online purchases. The APR is 16.99% (variable), after the introductory 0% for 6 months. The cashback bonus must be redeemed in increments of $20 and their FAQs do not say whether there is a yearly maximum so ask. Should you get it? Check out their list of online retailers first; if you don't shop there, or don't own a car their extra percentages will be useless. At the base 1% rate, you have to spend $2000 before you get the $20 payout.

If you commute by car frequently, they have a special "Open Road" card that rewards with 5% cashback bonus on gas and auto maintenance. The variable APR is 16.99% with a 6 month 0% APR rate if you have a big car repair coming up that you need to pay off slowly. Should you get it? Only if you're going to spend a significant amount of money on your car...and nothing else.

In short, students have more options than ever before as credit card companies realize they can make money off of you. If you're careful, you can work the rewards to your favor and never pay a cent in interest. Regardless, pay careful attention to how you spend your money. And try to save a little too.

Source: Associated Content

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Student Credit Card Basics

Most high school and college students will find it difficult, if not impossible, to be approved for a standard credit card. Fortunately, there’s another option. Students can apply for a student credit card, which is not only easier to get, but can help them start building a credit history.

For the most part, a student credit card is just like a standard credit card. But, because this is the students first chance to prove they can be financially responsible, a student credit card might come with added restrictions and limitations.

A Student Credit Card Will Have a Lower Credit Limit
A lower limit is the providers attempt to prevent misuse and abuse. Until the student can show that they can be responsible, and will actually repay the amount they’ve charged on their credit card, the provider will try to limit the amount they could potentially lose if the balance is never repaid. Usually, the limit on a student credit card is between $500 and $1000. Once students have shown that they can be responsible in paying their bills on time, the limit might be raised.

A Student Credit Card Will Have a Higher Interest Rate
This is another way providers try to limit potential losses. The theory is that, since most students don’t have a proven track record of paying their bills, there’s a higher probability that many of them won’t, which could mean a financial loss to the provider. By charging a higher interest rate on every student credit card they issue, the provider is, in a way, making up for the money they could lose on those who might never pay off their credit card balance.

You Might Need a Co-Signer on Your Student Credit Card
This is another form of insurance for providers. A co-signer is someone who agrees to be responsible for the balance on your student credit card if, for any reason, you are unable to pay it yourself. The co-signer on a student credit card is usually a parent or guardian. And, as the co-signer, they will have control over whether or not the limit will be raised.

While there are some restrictions and limitations on a student credit card, getting one can be the first step to building a good credit history. It can also be a great help in easing the financial struggles many students face, especially when they first get to college.