Best Credit Cards For Students With Bad Credit

Trying to navigate the world of finance as a student can be daunting, especially when you're faced with a bad credit score. But fear not! There are still plenty of credit card options available for those who fall under this category. In this article, we'll dive into the best credit cards for students with bad credit, so you can start building a better financial future.

How Bad Credit Affects Students

For students, having a bad credit score might initially not seem like a big deal. However, as you start to venture out into the adult world, it becomes necessary to understand how it can impact your financial opportunities. Bad credit can make it difficult to obtain car loans, mortgages, and even impact your ability to rent an apartment. Furthermore, a poor credit score can hinder your chances of getting the most rewarding credit cards available.

Finding a Credit Card with Bad Credit

Despite having a bad credit score, you do have options when it comes to obtaining a credit card. You'll need to focus on secured credit cards or credit cards explicitly designed for those with bad credit.

Secured Credit Cards

A secured credit card requires you to put down a security deposit, which typically serves as your credit limit. By having this deposit, the financial institution takes on less risk when lending to people with bad credit. The deposit acts as collateral if you fail to make your payments.

Credit Cards for Bad Credit

Some credit card companies offer specific cards tailored for individuals with bad credit, often providing opportunities to rebuild your credit score. These cards might have higher interest rates and lower credit limits but can be a stepping stone to getting a better card once you've improved your credit.

Best Credit Cards for Students with Bad Credit

• Discover it® Secured Credit Card: This secured credit card requires a minimum deposit of $200 and offers a cash-back program on eligible purchases. Furthermore, Discover will review your account after eight months to see if you're eligible to transition to an unsecured card.
• OpenSky® Secured Visa® Credit Card: OpenSky doesn't require a credit check or even a bank account, making it an excellent option for those with really bad credit. The minimum deposit is $200, and there's a $35 annual fee, but they report to all three major credit bureaus, helping you improve your credit score.
• Capital One Platinum Secured Credit Card: This secured card offers the opportunity to get a higher credit limit without necessarily increasing your security deposit. You may also qualify for an upgrade to an unsecured card after demonstrating responsible card usage.

Best Credit Cards For Students With Bad Credit Example:

Imagine you're a college student who has had some past financial struggles that led to a poor credit score. You decide to apply for the Discover it® Secured Credit Card in an effort to rebuild your credit. After a $200 deposit, you receive your card and start making purchases for essentials like textbooks and groceries.

By responsibly using your card and making all the payments on time, you gradually see improvements in your credit score. Eight months later, Discover reviews your account and determines that you're eligible to transition to an unsecured card with a higher credit limit. Now, you're on your way to financial stability and a better credit score.

Your credit score doesn't have to hold you back. With the right credit card for your situation, you can gradually improve your credit score and open up a world of new financial opportunities. Remember, rebuilding credit takes time, but with consistent and responsible actions, it's possible to get back on track. Feel free to share this article with fellow students who are in a similar situation, and don't forget to explore other helpful resources and guides on Flik Eco. Together, we can build better financial futures for ourselves and others.