College students aren’t able to get a student credit card as easily as they could in the past thanks to new credit card laws in place to keep credit card companies from taking advantage of students. However, if a college student wants to build a good credit history early, they may want to consider a secured credit card.
A secured credit card has a bank account, in which the cardholder deposits money, and that account secures the bank against any loss and often sets the credit limit. However, a secured credit card is unlike a debit card since the money in the account isn’t used to pay for purchases.
Students with a secured credit card have to make the payments each month, but when used in an intelligent way, this can be beneficial to anyone looking for a higher credit score or more of a credit history. A good idea may be to save money, make a purchase, then promptly pay off the purchase when the bill comes due.
There are various lenders that offer secured credit cards, so shop around if you are looking for one and make sure you get the best rate and as few fees as you possibly can. Again, secured credit cards may not be for everyone, but when used wisely a secured credit card can be a valuable asset to anyone looking to up their credit score.