Rejected for a Student Credit Card? Can you build credit without a student credit card?
According to most stereotypes, college is a time when students only have to worry about what party happens next. This applies only to a small percentage of students. Smart students know that the time spent in college is meant to prepare you for life. Classes you take will help prepare you for a future career. Leadership, service, and social opportunities will help prepare you to be a productive citizen. Considering your financial habits and goals will also help you prepare for life after college. Some students get rejected for a student credit card. This is how you build credit in college without a student credit card?
Building credit in college is important.
It’s important that you begin building credit in college. You’ll need a solid credit history to establish your adult life after graduation. Want to rent an apartment without a cosigner? You’ll need good credit. Hoping to have electricity and other utilities there? You’ll probably need good credit for that, too. If you’re planning to buy a car or a house one day, you’ll also need a good credit score.
One of the best ways to establish your credit history is to apply for a student credit card. Credit card companies offer student credit cards as a starting point for building credit. There are several good college cards on the market. You’ll want to make small purchases on the credit card each month, then pay them off before the due date. Putting a recurring charge like your Netflix subscription on the card is an easy way to do this.
Also, as you pay on time each month, the credit card company reports to credit bureaus. It’s a lot like your professor reporting your grades. If you want a solid GPA, you have to make the decision to study consistently. If you want a good credit score, you have to use credit responsibly over time.
What to do if rejected for a student credit card?
If you have bad credit or no credit, your application for a student credit card may be denied. The first thing to remember if you’ve been rejected for a student credit card is that you shouldn’t take it personally. The second is that you shouldn’t give up. Even if you aren’t eligible for a student credit card, there are other ways to build your credit in college as a student.
Today, CreditFast will give you four ways that you can begin building or rebuilding your credit if you don’t qualify for a student credit card.
1. Become an authorized user on someone else’s credit card.
An authorized user, as the name implies, is someone besides the cardholder who can use a credit card. As an authorized user, the credit card account will show up on your credit report. To make this work, you’ll need to ask someone if they will add you to their account. Your parents are usually the best choice. They may not want to make you their teen an authorized user. Perhaps, another friend or family member may also be an option. To make them more comfortable, tell them they can keep the actual card. Your goal isn’t to use the card. It’s to associate yourself with their good credit. This brings us to the most important part. Make sure the person you ask has good credit. If you become an authorized user on a card with late payments, this will hurt your credit score.
2. Apply for a secured credit card.
If your application for a student credit card has been rejected, you may still be eligible for a secured credit card. Secured credit cards require a cash deposit, the payment of a fee, or sometimes both. The amount of your deposit will determine your credit limit. Credit card companies will issue a secured card to almost any consumer. The biggest barrier is having money for the initial deposit.
Reviews of the Best Secured Card Offers With Applications
|Capital One ® Secured MasterCard ®||Discover it® Secured Credit Card|
|Citi® Secured Mastercard®||OpenSky® Secured Visa® Credit Card|
3. Take out a loan.
If you’re self-disciplined, taking out a loan can be an excellent way to build credit. If you already have money in a savings account, talk to your bank or credit union. Your best option may be a credit builder loan. The bank will use the money in your savings account as collateral on a small loan. You won’t be able to access the money in your account until you’ve paid off the loan.
If you don’t have money in savings, you may still qualify for a loan from a peer-to-peer lender. Look for the lowest fees, then apply for the smallest loan amount possible. When you receive your check, open a new savings or checking account to deposit the money from the loan. Then, set up automatic payments from this new account. Don’t forget that each month, you’ll need to deposit enough money into the account to cover interest charges. Your on-time loan payments will be reported to the credit bureaus, building your credit history.
4. Ask other companies to report your payments.
Banks and credit card companies aren’t the only ones who can report your payment history to the credit bureaus. If you live off-campus, your rent payments may also be reported. Ask your landlord or property manager if they report on-time payments. If they don’t, look into working with a rent payment service that does. RentTrack is one reputable service that reports to all three credit bureaus. Also, other companies, like cell phone providers, can also report to the credit bureaus. Most report only negative payment history. Some will also report good credit habits if you ask. Contact customer service to make a request.
Trying to build credit after being rejected for a student credit card can feel hopeless. It isn’t. While a student credit card is an easy option for establishing credit, it’s not the only way. Use one of these four options. Remember to make every payment you owe on time. Only spend what you can afford. When you do that, you’ll start to see your credit score increase steadily over time. Lastly, taking these small steps to improve your credit now will help prepare you to take bigger steps later in life.
If you have no credit try the Petal Visa Card. This is a cash back card with no annual fee!
CreditFast has reviewed the best student credit cards on the market. Some of the credit card offers are from our advertising partners. CreditFast has objectively reviewed the features and benefits of each college credit card. We have chosen student credit card offers based on our editor’s recommendations.
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