Banks are now getting strict with the rules and regulations while granting approvals for credit cards for customers with no credit history. Hence, college students who have no credit history or any other financial background are finding it very difficult to avail credit cards. But, there are ways and means for college students to obtain credit cards.
Every bank needs some credit history in order to extend credit facilities to students. Hence, the first step that students should take to get an approval for credit cards is to first find ways to establish credit history. Some of the options are as follows:
- After getting an enrollment in a college, students should ideally take up a part-time job in order to show a steady source of monthly income. This will go a long way in establishing the fact that the applicant has some creditworthiness and is capable of paying up the monthly credit card payments. Once this is established, it would easier for students to avail loans even in the future.
- The other option is to get a telephone plan in the student’s name. This should not be a problem as the monthly payment plans are low and students will not find this to be a big burden. This will also get reflected in the credit reports that are generated by the credit bureaus. The student’s credit history can be established and it will become easier to obtain a credit card.
- There are part-time jobs offered by certain college programs, in order to help students who are in need of financial aid. This is also a good option to establish credit history.
- Instant approval credit cards are the best option for students as they need some collateral against the card. This way, banks can ensure that the even if the student’s repayment is delayed, they will have some security.
- The next best option is to have a co-signer to get an approval for the student credit card. But, students must ensure that the co-signer has a good credit history. Very often, banks prefer the parents or guardians to be the co-signatories. Some parents prefer having a joint account with their children. This is one way to ensure that the student gets the required credentials to establish credit history. Having a joint account is also one way for parents to keep track of the expenses of their children.
Following these tips can help in obtaining a credit card in spite of having no credit history.