Credit cards should be avoided unless the cardholder has steady income and can afford to pay the balance in full every month. College students lack the necessary income to remain balance-free, and tend to pay the minimum monthly payment. ... College students should use credit cards for emergencies only.
For college students, credit cards offer financial flexibility and a way to build credit. ... When you pay off your entire credit balance every month, you can avoid interest charges and use category spending (such as gas or groceries) to earn cash back and rewards points from credit cards with perks.
Average Credit Card Debt for College Students
The reason is that credit card debt is painful for anyone, but it's especially troublesome when you're still in college because you're most likely to already have student loan debt. ... Your credit score will start to go up as your balance starts going down.
The Pros and Cons of Getting a Credit Card in College
If you've done all that and still want to open your own account, then a student credit card may be a good option. "Yes, college students should get credit cards. There is no better way to start your credit history. And it's far easier to get your first card as a college student than after you graduate," says Unverzagt.
A student credit card is a credit card that is offered to students at the college level. Any student beyond the age of 18 years is eligible to apply for the credit card as it does not have an income eligibility limit. These credit cards have lower interest rates and have a validity period of 5 years.
Cosigners can act as collateral for students with no income
A small handful of major credit card issuers will sometimes allow you to apply for a credit card with a qualified cosigner. In particular, Bank of America and U.S. Bank are occasionally known to approve credit card cosigners.
If you don't have any form of income, you can open your own credit card account by having a family member co-sign. If your parents or other family members are willing to do so, opening a joint account can help build your credit while giving you access to the rewards and benefits that a student credit card offers.
If you only work seasonally, part-time, or not at all, you may not have enough money to pay a credit card balance in full every month. Getting a credit card without enough money to pay the bill will lead to accumulating interest every month and growing risk to your credit.
Best credit cards for college graduates
The best college student credit cards of May 2021
You can start building credit by repaying your student loans or by signing on as an authorized user on a family member's credit card. If you earn your own income, you can also apply for your own secured credit card to help you get started.
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