College is an exciting time of newfound independence for students, but it can also bring financial challenges. Credit cards can be useful tools in managing everyday expenses, building credit history, and taking advantage of rewards programs. Unfortunately, students with poor credit may find it difficult to get approved for a credit card. However, there are options available for those with less-than-stellar credit scores. In this article, Flik Eco will explore the best credit cards for students with poor credit and provide tips on how to use them responsibly and build up your credit score.
Credit Cards For Students With Poor Credit Table of Contents
Why Students Should Consider Credit Cards
Choosing the Right Credit Card for Students with Poor Credit
Why Students Should Consider Credit Cards
Credit cards can provide several benefits, especially for students trying to establish their financial footing. Here are some reasons why it's worth considering getting a credit card as a student:
- Financial Flexibility: Credit cards can be helpful in managing your finances and covering unexpected expenses or emergencies.
- Building Credit: Using a credit card responsibly can help in establishing a good credit history, which is vital for future financial decisions like renting an apartment or buying a car.
- Rewards and Perks: Many credit cards offer rewards and perks such as cash back, airline miles, or student discounts.
Choosing the Right Credit Card for Students with Poor Credit
While options may be limited, there are credit cards specifically designed for students with poor credit. When considering these cards, keep the following factors in mind:
- Secured vs. Unsecured: Secured credit cards require a security deposit upfront, which serves as the credit limit. These cards are more accessible to those with poor credit and can help build your credit history. Unsecured cards do not require a deposit but may have higher interest rates and limited credit limits.
- Interest Rates: Look for a credit card with a low interest rate or an introductory 0% interest rate to minimize the amount you'll have to pay in interest charges.
- Fees: Some credit cards come with high fees, including annual fees, late-payment fees, or foreign transaction fees. Be wary of these cards and weigh the costs against the benefits.
Best Credit Cards for Students with Poor Credit
Here are some credit card options for students with low credit scores:
1. Discover it® Secured Credit Card: This card is designed to help you build your credit while earning rewards on purchases. It requires a minimum security deposit of $200 and offers 2% cash back on gas stations and restaurant purchases (up to $1,000 in combined purchases each quarter) and 1% cash back on all other purchases.
2. Deserve EDU Mastercard: The Deserve EDU Mastercard is tailored for international students and does not require a security deposit. It comes with a unique feature of providing 1% cash back and a $59 annual subscription credit to Amazon Prime Student.
3. Credit Builder Secured Visa® Credit Card: This card by Armed Forces Bank caters to students who want to build their credit from scratch. It requires a security deposit that can range from $300 to $3,000 and offers online credit-score tracking.
Credit Cards For Students With Poor Credit Example:
Imagine you're a college student with poor credit history and limited financial resources. Your monthly expenses include groceries, transportation, and dining out with friends. You could choose the Discover it® Secured Credit Card to help you manage these costs while building your credit over time. By using the card for your monthly expenses and paying off the balance in full each month, you'll avoid interest charges and build a positive credit history. Over time, this can help improve your credit score and financial standing.
Students with poor credit can still take advantage of credit cards to manage their finances and build a credit history. By researching the available options and choosing a card that aligns with your financial goals, you'll be on the path to improving your credit score while enjoying the benefits of being a cardholder. Don't forget to share this article with friends who may also benefit from this information and explore other investing tips on Flik Eco – together, we can conquer the complexities of personal finance!
