College students should apply for credit cards so that they can start building their credit history early. In today’s world, you need a good credit score for essentials such as applying for phone and loans. With a student card, the issuer will submit report to the credit bureau everytime you make on time payment. You will be able to build up a good credit score if you continue to make prompt payment for a few months. As soon as you build up your credit, you will be able to apply for a loan to buy a new apartment and car.

If you already have a steady income, you can apply for the regular student credit card. Students who don’t yet have a steady income can apply for a secured student card. Regular student credit cards offer a lot of perks such as cash back and rewards points when you charge the card for your expenses. Most students haven’t build any credit history yet so they would prefer to choose the secured credit card.

Secured credit card requires a security deposit as collateral and the typical amount range from $300 – $5,000. The more you can put in the security deposit, the higher your credit line will be. Many credit card companies will automatically unlock your card into an insecure credit card if you consistently pay your bill for 5 months or so. Secured credit cards can be used for building credit score just like the regular insecure credit card.

Students who are under 21 years will need to get someone to become a co-applicant to put down their signature on the application. Doing so allows you to sign up for a credit card in your own name. The co-applicant will be responsible of paying the bills if you can’t pay the bills. If someone add you as an authorized user, you will have the right to using the card and don’t have any responsibility to pay the balance in the credit card. This is the best option for people who don’t have enough credit history.

Credit cards when used responsibly can help students to learn about money management. You should use credit card for bigger purchases instead of small daily expenses that you can easily pay off with cash. You must also remember the due date of your card so that you will pay your bill on time. Many credit cards let you set up automatic bill payment so that the bill is automatically deducted from your account at the due date. When looking for a student credit card, make sure you to look at several credit card brand names and check out the fees such as annual fee, interest rate, and late payment fee. Some student credit cards will provide free financial tools for tracking your spending.