Secured Credit Cards For College Students—Can They Build A Good Credit History Early?

College student often have the trouble, when they graduate or while in school, of having little or no credit history.  This can be a problem when it comes to things like student loans or getting an apartment, but simply starting a credit history earlier can give a college student or graduate the room to increase their credit score faster.

One way college students can get a good credit history started is by getting a secured credit card.  Typically, secured credit cards offer competitive interest rates, which can be a benefit to any college student looking to build a good credit history.

A student or parent can deposit money into a secured account and then they get a credit card to use that would work like an unsecured credit card.  However, keep in mind that it isn’t a debit card and the secured account’s funds do not pay for purchases, but rather, the student is responsible for doing so.

With careful planning though, a secured credit card can help someone in building their credit history and credit score, even when they are out of college.  This will also come in handy after a few years in the workforce when it comes time for you to buy a house and you are ahead of the game on your credit score.

Remember though, secured credit cards can work both ways and irresponsible use can hurt your credit history, but with a bit of planning, budgeting, and making smart purchases, a secured credit card is going to be an asset in building your credit.