College Student -- Should I apply for a credit card?

Question

I will be a senior in the fall and currently have two check cards. I want to apply for a credit card to establish a line of credit but am not sure if I should...

Should I apply for a credit card? If so, should I apply for a student credit card, even though I only have a year left?

I am looking at CitiBank's Platinum Select Card...anyone have that?

Answer 1

If you do not have any established credit yet, it's a good idea to establish it. Within the next year or so, you will probably want to purchase a car, get an apartment, etc. Here's what I did that helped me establish credit but kept me in check. My first credit card, which I got my sophomore year of college, came with a $1500 limit. I called the credit card company as soon as I got my card and asked them to lower the limit to $500. That way, I could charge small things on the card and pay them off to establish credit, but I couldn't dig myself into a hole that I couldn't get out of. As you are able to realize your responsibility with using credit, you can ask for a credit line increase (many companies will grant increases automatically). Just be careful and don't get in over your head - it can be very tempting to buy something and just say "I'll be able to pay it off." Good luck with your last year of college! :-)

Answer 2

I would go with a Capital One Credit Card... its what is considered a "starter card". I've had this card since I was 18 (I'm almost 20 now)... and I like this card. Although I made the mistake of using all of the credit on it so now I just pay on the card.

However I suggest if you do apply for the card, get the card & activate it is use it for simple purchases like gas or a shirt, etc. Something that you would pay for in cash normally... that way you can buy the gas and send the $30 in that way its back at $0. This is the best way to establish a line of credit because you know that you will always be able to pay on it! I've seen many people build up credit like this! :-)

Good Luck!

Answer 3

Only sign up for a credit card if you can pay the money back. A lot of students get a card and have no source of income and wind up in a lot of trouble and a lot of debt.
Just be smart with your spending. Since you are new to credit (trying to establish), you might want to start off with a low limit like $500-$800 dollars. You could maybe buy your books with it and pay it off over a short time or just buy small things with it and pay the balance in full each month.
When I was in college, I had quite a few credit cards, but they were for emergengices and I hardly used them. One should be sufficient for right now. Just do your research about late fees, APR, and any other special promos that they have going on right now. Make sure there is no annual fee. Oh! If you travel a lot, you might want to get a card that racks up sky miles or something along those lines. Most of those have annual fees, but if you find a good program, it might be worth it.
Good luck in school!

Answer 4

If you are a college student, then it's best to apply for a credit card designed for students. Citibank has some of the best credit card offers that have low interest and no annual fees. You should definitely want some cards that have no annual fees and low interest rates since you won't be using it alot. So whether you use the card or not, it won't cost you anything for having one.

Answer 5

Establishing credit is good but the risk is once you get one...it is oh, so easy to get 12. I did the exact same thing in college and instead of building my credit, I managed to mess it up pretty badly. I know, you aren't me and you probably have more self control. Once you get one credit card you will start getting offers from everyone for credit cards. Just say "no". Truthfully, it is better to rely on good ole cash than on credit anyway. If you want a big dollar item, then save the $$ over time an purchase it. Delayed gratification.

You may finance a car eventually and that will help build your credit. When you go to purchase a house, you do want good credit but more than that, you want a very low, debt to income ratio. That means you want to owe (debt) much less than you earn.

Answer 6

Good credit is valuable. Having the ability to borrow funds allows us to buy things we would otherwise have to save for years to afford: homes, cars, a college education. Credit is an important financial tool, but it can also be dangerous, leading people into debt far beyond their ability to repay. That is why learning how to use credit wisely is one of the most valuable financial skills anyone can learn.

How to Establish Credit

Begin by opening individual savings and checking accounts in your name. Over time, your deposits, withdrawals, and transfers will demonstrate that you can handle money responsibly.

Applying for a loan is another option, but be aware that this method of establishing a credit history will cost, since loans require the payment of interest.

You could take out a bank loan secured by the funds you have on deposit or by items you own, such as a car. You could also ask a friend or relative who has good credit to cosign a loan, which means that he or she shares liability for the loan with you.

You could also apply for department store and gasoline credit cards, which generally are easier to obtain than major credit cards. Before you apply for any credit, however, make sure you understand the terms. For example, how long is the grace period or the time you have to pay the current balance in full before finance charges are added? Is there an annual fee or other fees associated with the credit? If you believe that you will carry a balance, you need to know how finance charges are calculated.

Patience is important in this process. It takes time to establish credit and build a record of consistency in making payments to demonstrate your creditworthiness. And it is much better to go slowly and develop a strong credit record than to apply for too many credit cards or a loan that is larger than you can handle.

Start slowly, be cautious, keep track of your overall debt, and pay on time. Most importantly, remember that credit actually represents real money and has to be repaid with interest.

Questions and concerns about credit agencies and credit practices can be directed to:

Federal Trade Commission
Consumer Response Center - FCRA
600 Pennsylvania Avenue, NW
Washington, D.C. 20580
http://www.ftc.gov
(877) FTC-HELP

For information on organizations that help with credit counseling, contact:

National Foundation for Consumer Credit
8611 Second Avenue
Silver Spring, MD 20910
http://www.nfcc.org
[phone]

For More Information

The Federal Reserve Bank of San Francisco has several other consumer brochures. These brochures are posted on our web site at: http://www.frbsf.org/consumer/index.html.

Answer 7

Will you be responsible with the card and always pay off your balance? You can definitely apply, but don't get yourself into trouble. You'll pay for it for a long time, literally.

Answer 8

You can try to apply for a student card, but sometimes the rates are high.. You can try orchard bank or bofa.. Good luck

Answer 9

y not ma................