Advice for Students wanting a Credit Card
So you have left home. You are out in the big wide world. You are starting a course at a university. You have found accommodation and are beginning life away from the comfort of your home. And probably, for the first time in your life you have to think about money. You want a credit card. So how do you go about obtaining one?
You have either read or been told that credit card lenders only issue credit cards to those who are working and have a credit history. But you, who are on the threshold of adult life, have no credit history. So where do you fit in the grand scheme of credit ratings? Don’t panic. Remember even those who are working and have a credit history today, had to start work for the first time and had at one time no credit history, too.
Students, such as you, normally have no credit history. This means that credit cards lenders have no way of knowing whether you are the type to meet your financial commitments and pay your bills as and when they are due. This means that you are, at this stage, a risk to the credit card lenders as they don’t know whether you will be able pay back the money you owe them on time.
Despite this you will still be able to obtain a credit card but with a higher APR and with a lower credit limit than if you were someone who had a good credit history. However, as you begin to use your credit card and prove that you are good at managing your finances the credit card lenders will offer you a better APR and increase your credit limit. Remember too that once you graduate you will be entering professions such as solicitors, accountants, doctors and bankers etc with handsome salaries to boot. The credit card companies want your business as they want you for the long term because they know you will be a good credit risk.
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