Understand your credit score
Your credit score acts as a numerical representation of your credit health. Its main function is to help lenders assess risk, especially the likelihood of you failing to meet your credit obligations in the next 24 months. There are various credit-scoring models available, with the FICO score being the most widely used. In fact, FICO reports that more than 90 percent of major lenders rely on its scores to determine consumer eligibility for their financial products.
“Knowing your position before applying for a credit card or any loan is crucial, which is why checking your credit score beforehand is a wise move,” recommends Rossman.
You can obtain your credit score from the main credit bureaus, which include Equifax, Experian, and TransUnion, as well as directly from FICO. If you choose to get it from the bureaus, they are required to provide it at a cost considered “reasonable” under the law that established free annual credit reports. Alternatively, you can access your credit score for free through various other means. Many credit card issuers and banks offer credit reporting and scoring as a free service to their cardholders, and some — like Discover — even permit non-customers to use the service.
A lower score increases the likelihood that your credit card application could be rejected. Rossman suggests aiming for at least a credit score of 670 before applying for your first credit card, if you can afford to wait.
Explore student credit cards
It’s important to thoroughly investigate various credit cards before making a selection.
Key factors to keep in mind include the interest rates, maximum credit limits, annual fees, and any rewards or cash back incentives available.
If you don’t have a credit history, be aware that you may not qualify for a standard credit card initially. In such cases, think about applying for a student card or a secured card, which requires a deposit that acts as your credit limit.
Secured cards are generally easier to obtain than regular credit cards. Additionally, you might want to look into applying for your first card with fintech companies like Petal or TomoCredit, which consider factors beyond the traditional credit score and are thus more likely to offer credit to young adults and other underserved populations.
If you’re confident in managing credit and are interested in a rewards strategy, I personally advocate for simplicity. A no-annual-fee cash back card, like the Bank of America® Unlimited Cash Rewards credit card for Students – which offers 1.5 percent cash back on all purchases – is a great choice.
You can apply online
You should be able to submit your application for the credit card you want directly through the issuer or via a marketplace like Bankrate.com.
Bankrate offers a useful approval odds feature that helps you understand your chances of approval.
When you’re set to start your application, make sure you have the following information ready:
- Social Security number
- Date of birth
- Information about your income, including tax withholding details and job information
- Proof of school enrollment if you’re applying for a student card.
You may need to specify that being a student is your job, and if you don’t have a part-time job, your parents can be listed as your income source.
