Student Credit Cards Help Build Credit

Student credit cards are a great way for young adults to build a solid credit history and good credit scores – if they are responsible enough to manage the spending and repayment of debts. If you are college student looking to get your first credit card, or a parent ready to help them establish smart credit habits, here’s what you need to know about the basics of student cards.

How student credit cards work:

  • Credit card issuers are not allowed to market pre-screened offers to those under 21 without having their consent.
  • Nor can they offer credit to anyone under 21, unless the applicant can prove they can make payments or has a cosigner over 21.
  • Students without cosigners must prove they are employed, or have the ability to make payments.
  • Proof of enrollment at a university, college or trade school is generally required.
  • Credit limits on student cards are typically in the $500 range.
  • Some student cards act as rewards cards with incentives to pay on time and make good grades!

FOR COSIGNERS: The student usually gets the monthly bill and is responsible for any accumulated debt. However, if the student doesn’t make the payments, the cosigner can be held responsible for any unpaid debt.

For students with no cosigner or proof of income, a secured credit card might be a good option.

Secured credit cards are often connected to a savings account from a bank or credit union. If the student uses the card responsibly, they should be able to transition to a regular credit card.

Establishing good credit is one of the most important things a student can do.

When it comes time to rent an apartment, buy a car, or land their first professional job – good credit scores can open doors!


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