Establish Good Credit Habits With a Student Credit Card

By: Susan Slobac

Young people starting out in today's marketplace need a couple of items to succeed. One is a bank account that offers credit and savings privileges. The other is a student credit card. Earning money and setting aside a portion each month for savings is an excellent way to utilize the money a young person earns. In order to build a credit history, though, cash purchases are not enough. Banks require a credit history before you will be allowed a loan for the purchase of a car or a house.

A good way to develop a credit history is through the responsible use of a student credit card. By establishing a regular pattern of making purchases on a student credit card and then paying them off conscientiously, it is possible to build an impressive credit history. Good credit provides greater future purchasing power through increased lines of credit.

When you are looking for a new credit card, instant approval can take all the waiting out of the approval process. This will enable the credit card company to issue the card much sooner than using normal processes, and gives you the opportunity to use your new card sooner rather than later.

Under normal circumstances, if you are a new borrower and have no credit history, you might be required to have a cosigner in order to get a student credit card. Some banks that offer credit cards will reduce their risk by requiring you find an adult with a good credit history to sign your credit card application with you, with the understanding that if you default on the card, the cosigner would be responsible for paying the balance. It can be difficult to find an adult that would be willing to cosign, so you will want to examine each credit card offer for their requirements prior to applying.

Bank of America offers a student credit card that requires no cosigner, however. Once you have that credit card, instant buying power is yours. The student card from Bank of America also comes without an annual fee, and offers the convenience of online banking as well.

To be eligible for a student credit card, you will need to be enrolled in some kind of educational institution and be older than eighteen years of age. A credit card, when used reasonably by a student, can be a great tool to help you build your credit history so that it reflects well on you.

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