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Student credit cards

Many students do not need a credit card for their daily purchases, but get it to build their credit. Most credit card issuers will first check the credit history of the person before issuing a credit card and may deny a card if the student does not have a credit history.

If the parents of the student have a good credit history, they can apply for a credit card with the student as a cosignatory. After a few months, the credit history of the student will be built up and he or she can apply for a regular credit card. Alternately, the student can apply for a credit card through the bank which they are using. Both Visa and Mastercard have student credit card with no or low fee and interest rate features.

There are many credit card companies that will approve or disapprove the application for the credit card instantly if the application is made online. Even if the application is made over theĀ  phone, most companies have the data readily available, and can give a confirmation within five minutes. In some cases, they may need to verify whether the student has actually enrolled in the university.

Another option is a secured credit card, where a security deposit has to be made before the credit card is issued. If the regular payments are made for a period of one year and the credit limit is not exceeded, the security deposit amount is returned.