A person with a bad credit history is one who was or is at default while a person with no credit history is the one who never had a record of credit in the past. With the slight difference, having no credit history is just as bad as having a bad credit history.
Students are normally the biggest population of consumers with no credit history yet and are having difficult times applying for a credit card. Why so? It is because lenders or credit card companies don't have any basis yet of their creditworthiness. Would this mean to say then that they could never have their own credit cards? No. They still can have their own credit cards.
Here are just some ways or alternatives for students who would like to obtain a credit card:
- One can apply for a bad credit credit card. As its name implies, this card is especially designed for people with bad credit history but is not limited to that purpose. Bad credit cards can also be an option for students without credit history yet. When you opt for this card, just be reminded that the interest rates could be higher than the regular cards due to the issues of risk.
- Go find a specialist card. This type of card is especially designed for the very purpose of providing credit to students. Again, like the bad credit credit card, the rates are higher than the regular cards due to risk issues as well. The credit limit is actually very low but it is a good place to get started.
- Convince a parent or a person you know to be your co-signer. When you opt to have a person not related to you as your co-signer, just make sure that he has a good credit standing for higher possibilities of getting approved.
- Lastly, you can go for prepaid credit cards. It works like a regular card when it comes to purchasing except that you can only spend what's in the card. This type of card is deemed the best by a lot for students since it spares the cardholder or the parents (when they co-sign) from sky-high interest rates.
Whatever type of card you go for, it is important that you ask yourself whether you'd be able to manage it or not. So long as the card fits your needs then it is the right card for you.