Purchase interest rate
BMO AIR MILES Mastercard For Students
- Purchase interest rate: 19.99%
- Cash advance rate: 22.99%
- Annual fee: $0
- Credit rating: Good
- Minimum income: $15,000
- Minimum age: Age of majority in the province/territory of residence.
Student credit cards are tailored for young adults who may have little or no credit history and need to establish their credit. These cards sometimes even come with excellent perks like rewards and promotional interest rates.
In this student credit cards guide, you’ll learn what to look for in a student credit card, discover what you need to qualify for a student credit card, learn the critical mistakes to avoid when you’re using a student credit card and get answers to common questions about student credit cards.
The best credit cards for students will help you start to build good credit. High school students at least 18 years old will need a co-signer if they don’t have a steady source of income. Credit cards for college and university students between 18 and 25 years old can include secured cards and retail credit cards. Compare your options to find the best card for you.
Purchase interest rate
Many teenagers’ first credit card will be a student credit card. Not every credit card with the “student” label is actually good for students. It’s important to compare student credit cards so that you choose the best student credit card to help you build better credit and not get you into debt.
All credit cards come with certain features that affect the pricing and benefits of the credit card. Your goal with a student credit card is to pay as little as possible for the convenience of using the credit card. Here’s what to look for as you choose the best student credit card.
While a student credit card isn’t necessarily easier to be approved for, there are some special benefits offered that can make them more valuable to students.
Getting an early start on building your credit rating is an excellent way to set yourself up for financial success. Having a good credit score can open a lot of doors once you graduate, such as apartment and car loan approval, lower insurance rates and better credit cards with more benefits.
While you must be 18 years or older to have your own credit card, there are a couple of exceptions to this rule.
You have someone co-sign.
If you’re able to find someone to co-sign with you, that will ease the lender’s concerns about receiving payments owed because the co-signer will share in the financial responsibility with you. If you don’t have time for a job and are unable to find a co-signer, there is still another way to get a credit card. A family member or friend can add you to their credit card account as an authorized user. As an authorized user, you are not financially responsible for the debt and your use of the card might not affect your credit history. Not all credit card providers report authorized users to the credit bureaus.
College and university credit cards are a great introduction to the world of finances and credit, but it can be difficult to find the right one. For students who want to start building up their credit, once you hit the 18 age mark, more options will open up for you.
Like high school students, college and university students can get a credit card with a steady source of income or by getting someone to cosign. Getting an on-campus job or part-time job can prove to lenders that you can pay off your credit card balance without any problems.
Secured credit cards are another good option for college and university students. You typically don’t need any credit history to apply for a secured credit card, which is why they’re perfect first-time cards for students. Secured credit cards require a deposit that acts as your spending limit and backs your credit card as collateral for lenders in case you can’t pay back your card. Your card could also graduate when you do — some secured cards can be upgraded to unsecured cards when your credit score is high enough.
If you can’t qualify for a student credit card or want a lower spending limit, a secured credit card is a good option for college and university students.
Besides any annual fee, most other student credit card fees are avoidable. Knowing which fees your credit card charges can help you use your credit card in a way that minimizes the fees you pay.
Using a student credit card responsibly is the best way to build a good credit score and avoid getting into credit card debt. Here are some guidelines on how you should use a student credit card. Remember, the credit card habits you establish now will make a difference in your credit for years to come.
When you’re starting out with credit cards, you want to set yourself up for success. That means avoiding critical mistakes when you’re using a student credit card.
Worried making a mistake with your student credit card will ruin your credit score? Don’t be. Chances are your credit card company can fix small mistakes for you. Call your bank and ask them to waive the annual fee. If you missed your payment this month, show your bank you can pay it off now and ask them to remove any interest charges. If your bank hasn’t increased your credit limit in the last year and you always make full payments, ask them to increase your limit. This will improve your credit score and help you increase your borrowing limits over time.Back to top
|What kind of credit history do I need to get a student credit card?||You need good to excellent credit to be approved for a student credit card. The more perks the credit card offers – for example, generous rewards or promotional interest rate – the better your credit needs to be to qualify. Some student credit cards will even approve your application if you haven’t established your credit yet or if you have little credit history. Unfortunately, if you have bad credit, you may have a hard time getting approved for a student credit card.|
|Do you need to be a student to get a student credit card?||Yes, you typically need to be a high school, college or university student to get a student credit card. Some student credit card issuers may ask that you provide proof of enrollment to be approved for the student credit card. There may be rare exceptions to this rule. If you’re considering a student credit card, read the terms of the card to find out what you need to do to qualify for the card.|
|Are there age requirements for a student credit card?||You generally need to be at least 18 years old to get approved for a student credit card. If you’re under this age, the credit card issuer may require you to have a cosigner.|
|When would I need a cosigner?||If you’re under age 18 and do not have your own source of income or you do not meet the credit qualifications, the card issuer may require you to have a cosigner. The cosigner will need to be over the age of 18, have a source of income, and meet the credit criteria for the credit card. The cosigner will have equal access to the credit card and will be equally responsible for repaying the balance on the credit card.|
|Can I get more than one student credit card?||You can get as many credit cards as credit card issuers will approve you for. However, sticking to just one credit card is best, especially when you’re just starting out. Having more than one credit card creates the potential to get into credit card trouble. As you get more experience with your credit card and are able to afford another credit card, you can consider getting an additional credit card. For most students, one credit card is best until after graduation.|
|What happens if I can’t make my credit card payments?||When you miss a payment, your credit card issuer will charge a late fee to your account. After a few days, you’ll begin receiving phone calls reminding you to make the payment. If you catch up before your next due date comes, your credit is safe. However, if you don’t make the payment, the consequences become more severe. Your next required credit card payment will include the previously missed payment, the late fee, and the current month’s minimum payment.|
After your payment is 30 days past due, a notice goes on your credit report and your credit score may be impacted. Your interest rate will also increase to the penalty rate and your finance charges will increase. Your credit card issuer may suspend your spending privileges. You’ll continue to be charged a late fee each month you’re late and your minimum payment to catch up will increase.
After your payments are 180 days, or six months, past due, your account balance is charged-off, your account is closed, and the account balance may be pursued by a third-party collection agency.
If you’re having trouble making your credit card payments, contact your credit card issuer right away to work out a payment arrangement. Working with your creditor will save your account and your credit history.
|What’s the best way to build my credit with a student credit card?||Making your payments on time each month is one of the key ingredients to a great credit score. The second best thing you can do to build your credit is to keep your balance low. Charging only what you can afford and building strong payment habits will improve your credit score and help you qualify for better credit cards in the future.|
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