In case a student has no credit than getting approval for credit cards can be a challenge. Most credit cards need students to have an established credit history before approval. There are thankfully some good credit cards which will allow a student to begin building their credit devoid of any previous credit history.There are even some that offer rewards on credit card. In the case of no credit history, the best options for credit cards are secured credit cards and student credit cards.
Check Out the Different Options
Take a look at the different options of student credit cards for when you have no credit history.
- Capital One’s Quicksilver One- The specialty of this credit card is that it pays a cashback reward of an unlimited 1.5% on every purchase. The flat rewards indicate that a student does not require enrolling or keeping up with a specific category for maximizing their rewards. This credit card will pay 1.5% cash back flat on every purchase, and the user can redeem their rewards just at any time and for any amount as it will not expire. It has an annual fee meaning that the user will require charging about $2,600 for purchases in breaking even.
Students need not worry if they begin with low credit limits as this is normal when they avail a credit card having no credit. The user will automatically be considered by Capital One for an increase in credit limit if they make on time monthly payments during the first five months. Here the APR is steep so the student should pay their balance in full every month to keep away from high-interest charges along with preventing in negating their rewards. A big plus of using this card is that comes with some extra MasterCard perks comprising of travel accident insurance, auto rental insurance and extended warranty on goods they purchase on their card.
- Capital One Platinum-This card does not possess much extras and frills but has a reputation for approving consumers that have just begun with credit. Their website has countless user-submitted reviews coming from applicants that were approved without having any credit history. The student needs to ensure they have an income before applying. Akin to other credit cards from Capital One, the student will be considered automatically for an increase in credit limit in case they make on-time payments on the first five months. Owing to the steep APR the user will want to pay their balance in full every month to keep away from paying high interest on their credit card balance.
- Open Sky Secured Visa- Despite the user making the security deposit like collateral for their credit limit, the majority of the secured credit cards continue doing a credit check. But this card is an exception. It does not need a credit check thereby making it much simpler to get approval. A student can open this through a security deposit of somewhere around $200 to $3000. The student can do the payment through debit card, money order, mailing a check, Western Union or wire transfer. Such options are perfect for students who do not have any traditional checking account.
Their credit history gets reported to all three credit bureaus meaning that they can begin creating good credit if they make their payments on time as well as keep a reasonable credit card balance. As opposed to other forms of secured credit cards, this card will not get converted into an unsecured credit card. The moment the user begins building credit, however, they are likely to qualify for the unsecured credit card.
- Discover Secured Credit Card- This is another secured credit card having additional perks. The user’s purchases will earn rewards on cash back which they can redeem for the statement credit into their account. The student can earn cash back of 2% at a gas station or restaurant on about $1,000 in case of combined purchases under these categories every quarter. The remaining purchases will get flat cash back of 1%. If the card is kept open for a complete year, Discover will match every cash back automatically that the user earns in their first year. You need a security deposit of a minimum of $200 for opening up the credit card.
The moment the account is open for 8 months, the user’s account will be converted into the unsecured credit card as considered by Discover. The user will get a refund of their security deposit and keep the credit limit. Owing to this advantage, it is wise to have a bigger security deposit in case of the bigger credit limit. Besides Discover includes free FICO score along with the user’s monthly billing statements to help them see how the usage of their credit card is helping their credit score.
- Discover It Student Cash Back- This credit card is an ideal pick for students with no credit history. This card will offer the user cash back of 5% on purchases under categories which rotate every quarter along with 1% back on others. It is best to enroll before the commencement of the quarter to avail the bonus throughout the quarter. The card should be kept in good standing and must be active and towards the end of the first year. All cash backs that the user has earned at the completion of the first year will be matched by Discover.
- Travel Rewards from Bank of America– Students who want to get rewards which they can use during the summer vacation, spring break or offset the expenditure of trips home undoubtedly will take pleasure of this card. It will pay the user 1.5 points in each dollar in purchases they make through the card. The best part is if the user has a savings or checking account in Bank of America they can enjoy 10% bonus on their rewards and also free access to their FICO score.
These were some of the best credit cards for students having no credit history. Make your pick wisely.