I'll be a freshman in college in a few short days and the whole "Being An Adult" thing is starting to creep up on me. I just opened my first bank account and my first job will be in the dining hall on campus. Everyone and their brother has been screaming at me to not use my debit card for small purchases and to use (and pay off) a credit card at every possible opportunity to build strong credit early. This sounds great! I would love to do this! I'm going to be swimming in federal loan debt in four years, so I need every bit of good credit I can get my grubby little hands on! But there's one problem: I never established any credit. Is it even possible for me to get a credit card? How? Any recommendations?
It's possible with some banks especially on campus, some will have student accounts so it will not be a high credit, but will allow you a small limit. Bank of America usually allows them and Citibank. I know when I was at college Bank of America had an agreement will the college, anyone who was employed by them could get a credit card.
Although you have your work, your income (I'm assuming you're employed on a part-time basis) may not be enough to qualify you for a credit card. Banks and credit card companies are rather strict. Their business could drop if they don't properly screen the applications coming their way. At best, get a supplementary credit card. It's like an extension of someone else's credit. You get the same credit limit as that person but your purchases will be billed to him or her or added to the principal credit card's bill. So if anyone in your family has a credit card with sufficient credit limit, then go ask for a supplementary card.
I suppose banks would regard college students as a high risk segment due to their exposure to campus life which can see the credit card debt shooting through the roof. For a student, I would not advise for a credit card but soft loans which would expose them to the principles of financial prudence.
The Capital One Journey card is a good option. It has no annual fee, is designed to help students build credit, and even provides 1% cash back. In addition, it offers a bonus cash back reward for every month you pay your bill on time, which is great since I'm sure you know the #1 rule of credit card use is ALWAYS paying your bills on time and in full.
Like the OP says, if a person doesn't have any history of having any credit in the past, then a lot of credit card companies will turn down the application. I experienced this myself and while I wasn't a student, I wen't straight into a full time, well paid job straight from school and I applied for credit and got turned down. I was advised to look at building up a credit history with something like a mobile phone contract to begin with, effectively getting myself in debt before i would be considered. Times have changed though and I think that these days there are companies out there that will offer credit cards and especially to students, but as with all forms of credit, I'd seriously only consider getting a credit card as a last resort and if you can afford to buy outright what you need or save up, they they are the better options.
There are several banks that offer a university plan, but the credit limit is very low about $ 200. You need to spend your credit with wisdom.
