Credit Card for a College Student And To Build Credit?

Contrary to what a lot of people think, student credit cards can be quite easy to get IF you're a full-time college student AND they can be a good way to build credit.

If you're a full-time college student, the laws are entirely different for you. You don't need a co-signer even if you're under 21 and you don't need to make much money. Basically, you have to be able to make the minimum payment.

My daughter has a student Discover card and loves it. If you use her referral link here: https://www.discovercard.com/cardmembersvcs/acqs/a... you'll get $50 cashback bonus when you make your first purchase and you'll get cashback bonuses for everything that you purchase.

There's no annual fee and the APR (annual percentage rate) is fairly good. It ranges from 12.99 to 19.99%. But, it really doesn't matter how much the APR is if you pay your balance in full each month. As long as you pay in full, you'll never pay interest.

If you use a credit card wisely, it can be a great tool. But, you can also ruin your credit, so whichever card you end up getting, just be certain to use it the right way. Use it for convenience (paying at the pump, making reservations online, etc.) and to build credit. Don't use it to buy something that you can't afford.

Use it at least once a month for something that you need to buy anyway (gas, food, etc.). Set that money aside immediately so that you have the full amount when the statement arrives. Don't pay before the statement arrives. Or, at least don't pay all of it. You don't want a zero balance when your cycle ends.

You do want to keep your utilization at (or below) 30% of your available balance. In other words, if you have a $1,000 limit, you should never have more than $300 in use at any one time.

Just don't let temptation to get to you. It's too easy to spend money that you don't have. Be smart, and a credit card can be a wonderful tool.

While it is true that you don't need a credit card to build creditworthiness, it is the easiest way to start building your credit. Despite Dave Ramesy and those who drink his kool aid, credit cards are not evil. They are tools and if used properly are very useful.

Since you have no credit history, you might have to start with a secured card. Check with BOA. You have a relationship with them and they are more likely to extend credit to you.

When you get the card, use it for regular purchases, WAIT FOR THE STATEMENT, and pay the balance in full every month. That will build your credit and avoid interest. DO NOT pay immediately. Card companies don't want multiple payments and it defeats the purpose of building credit. Cards only report to the credit bureaus once a month. If you pay immediately, you won't show any utilization on the card. You have to show utilization to build credit.

Anyone that tells you you need a credit card to build "creditworthiness" is lying to you. Why would you need credit if you can pay your bills anyway? DON"T FALL INTO THE TRAP! Your debit card and job, plus the money you have in your account and LACK of debt will get you further in life than a credit card ever will. Read Dave Ramsey's "Total Money Makeover". It explains the whole credit scam in pretty simple terms.