Secured cards on the other hand require an initial cash deposit to open the account and the deposit is kept in a secure account as collateral for the credit line. Because of the credit card acts of 2009 a consumer under 21 must have their own source of income even if the card requires no credit.
It charges an annual fee of 0 99 depending on an applicant s creditworthiness in return for a 300 starting credit limit.
How to get a student credit card with bad credit. You can get some of student credit cards with no credit. It s actually the cheapest unsecured credit card for bad credit available right now. Secured credit cards may only require a deposit arguably the easiest credit card to get secured cards require an initial deposit to open your account.
Your first credit card may be a student card with high interest rates and a low credit limit but with responsible use you may be able to work your way up to other cards that better suit your needs. How to get a student credit card with no credit or bad credit just because you re a college student doesn t mean you ll automatically get approved for a student card. As a student you have access to a range of credit cards specifically designed for students these cards are not only easier to get issuers know students are unlikely to have much credit history and they approve applicants accordingly but they re also often much better quality cards than are available to first time cardholders who are not students.
That deposit acts as collateral against potential default meaning if you become seriously delinquent more than 180 days late the issuer can use your deposit to cover your outstanding balance. Students with little or no credit yes even some students without a social security number may have some options to help get things started. Figure out if your credit is as bad as you thought if you have a credit score above 640 you re actually in pretty good shape and should be able to qualify for many average credit cards including those with low interest rates and no fees.
The best credit card for students with bad credit is discover it secured discover offers are not currently available on wallethub and may be out of date because it has a 0 annual fee a 0 foreign transaction fee and very nice rewards. Credit card companies actually roll out the red carpet for students despite their lack of credit history. The best credit card for bad credit with no deposit is the credit one bank visa credit card.
They do this because of students earning potential and decades of forthcoming financial independence which can be very profitable for banking institutions. Secured credit cards for students with bad credit credit cards that don t require any sort of deposit are known as unsecured cards.