Applying and Using Student Credit Card

This post is continuation of previous post Applying for student credit card -1. It will be new concept for students who are still in India and for those of you who are already here, must have come across the terms, credit history, balance transfer and many other credit related terms.

Steps to build Credit History

1. Open a new Bank Account ( Checking and if possible Savings account too)
2. Apply for Social Security Number.
3. After you have SSN, apply for Student Credit Card(s)
4. Use your credit card for daily purchase
5. Pay your bills on time ( pay in full )
6. Check your Credit Report atleast once in a year.
7. Watch your credit history and credit score ( 350 to 850) grow.

Applying for Credit Cards

There are many banks that offer student credit cards, that will help student to build credit history. Student credit cards will have low credit limits. Credit Limit varies from $300 to $2000 for student card.

Universities offer their own card through some bank. There are good chances that you will get your credit application approved, if your university has one. Even if its an Alumni Association card.

Some of popular students cards are , MBNA ( now its Bank of America), American Express Blue for Student, Citi Students Cards, Chase Students Card. Usually, seniors don’t suggest to apply for Discover card, until you have good credit history. Don’t apply for too many cards. First apply for 1 and see the outcome. If you get it approved, use it for 6 months to 1 year, build your credit history, ask for credit line increase.

Using Your Credit Cards

If you want to build the credit history, you need to use your credit cards for paying bills, grocery store purchase, .. and make sure you pay the bills before the statement due date. Your credit score will improve every month. It will take atleast 6 months to have decent credit history.

Related posts:

1. What to look when applying for credit card?
2. Student Credit Card Basics – Getting into Debt
3. Why Did I Open 4 Bank Accounts?
4. Open bank account and earn money
5. When To Apply for Student Education Loan?
6. Timeline – Students Spending Habits in US

Tagged as: Credit Card, Money