A lot of students and minors are having a hard time securing their very first credit cards. This is because they do not have existing credit records that they can use in applying for the credit cards they need. Moreover, most of these young card applicants do not have stable sources of income which they can use to guarantee the repayment of the credit card balances they might be incurring.
Still, it is possible for young people, most especially college students, to be granted the credit lines they need. After all, many companies and business establishments today offer four unique programs to first-time cardholders. Through such, students and minors can gain access to shops and stores which rely mostly on card transactions. Not only that, these young consumers can successfully build their credit history.
Now, what are the card programs available to first-time cardholders? You will find the answer to this question in the succeeding paragraphs of this short article.
Card Options For Young Consumers
1. Credit card for students. Young consumers enrolled in universities or colleges can apply and get approved for a student credit card. With this, they can have sufficient funds to finance some of the expenses that they will be incurring while they are in school. They can use their cards to pay for their school and tuition fees, school supplies, rent in college dormitories or apartments and other academic-related expenses. But what should a college student consider before he takes and uses a charge card?
A young consumer must remember to apply only for programs that charge low interest rates and fees. This way he can avoid making large payments on interest and other additional charges while he uses his plastic cash in paying for his expenses.
Once the application gets approved, cardholders must resolve to use the card responsibly. They can do this by paying their charges on-time and in full each month. This way, they can succeed not only in paying down their credit obligations but also in building their credit reputation.
2. The bank where you opened a checking or savings account. Remember that having an existing relationship with a bank or a credit organization can increase your chances of being granted the card you need. So, if you have an existing savings or checking account with a bank or credit union, then you can approach the firm and apply for a program they offer.
3. A department store or gas card. You can also apply for programs from gas companies and department stores. Such business establishment normally offer easy approval terms that do not possess stringent requirements nor application procedures. However these credit programs typically impose high interest rates and finance charges especially when you decide to carry a balance from one month to the next. So, be careful in choosing a department store or gas credit card. And as much as possible, settle only for the program that carry the most affordable rates and fees.
4. A secured credit card. Most traditional banks and card companies offer secured credit cards not only to those with poor history but also to young consumers who are yet to establish one. To apply for this card, you just need to submit all relevant documents, pay the charges and fees, and provide an initial deposit of about $300 to activate your account. And soon enough you can have a card that you can use in signing up for purchases and in paying your bills and other expenses.
