The New Word Is Yes
Little to no credit history can make it hard or near impossible for students that are applying for student loans or other lines of credit to start progressing. Many institutions turn students away because they don’t already have credit established. But how can you establish credit, when you continue to be denied credit cards in the first place? Deserve is bridging the gap for students to be able to start building credit, without turning them away due to a lack of credit history.
If you are a soon to be college student, currently enrolled, or soon to be graduate, there are more incentives with this credit card like referral bonuses and Amazon Prime Student perks to start looking into. You’re going to want to keep reading, because it gets even better!
This new card helps not only domestic students but international students as well. This credit card will will start reporting to 2 of the 3 major credit bureaus (Transunion and Experian) so making payments on time to your credit card will be very important. To start the process and apply with no credit history, they will be looking at several factors:
- The financial documents you provide and your credit potential
- Bank account balances and your ability to pay
- Your contact information and how frequently it changes in the likelihood that they need to get in touch with you
- Your major and the likelihood to graduate and get a job
The Benefits to the Card
If you are approved for the credit card, you will notice there are several factors that make the Deserve card stand out:
- No annual fee and no foreign transaction fees
- Your first late fee is waived (do not let this be a trend, lates on a report can harm you scores greatly)
- Unlimited 1% cash back on all purchases-rewards will not expire as long as your account is active
- 12 months with Amazon Prime Student-a six month free trial and a 12 month statement credit of $49.99 when you use the card for the subscription
- Referral credit money to account-$30 of credit every time you refer someone and the friend also gets $30 for joining. You can refer an unlimited number of friends but if you refer 10, you’ll get a $200 bonus to the accoun
In order to start building credit here is what you need to apply:
For domestic students
- Your Social Security Number
For International Students
- Student Via, passport ID or school documents (I-20 form or DS 2019)
Applicants must be 18 years of age for this offer. There is no deposit needed and no cosigner for the credit cards Deserve offers.
Key Factors to Remember
Often times college age students get out into the world and are ready for independence. Before you start applying for credit cards on your own please consider three very important variables.
1. Debt-Credit cards are not to be taken lightly and should be used knowing exactly the goal in mind-to build credit. Racking up credit card debt will follow you around for years. Buying a tank of gas or a textbook and then paying it off is good practice with your money. Try not to overspend or live outside of your means.
2. Utilization-High balances on a credit card mean low credit scores. If you have a credit card you are using, the balance should be as low as possible. If you are having to use it for something significant and the balance is pretty high, try to cut that down to below 30% of the utilization. This will help you keep your credit scores up.
3. Budget-Keep in mind your why for the credit card you have. If you are hoping to build your credit scores up, remember the other debts after school that will follow you i.e student loans, etc. The last thing you need is a credit card looming over you for years because of a spring break trip you took in college. Know your limits and understand your budgets!
While there are many credit card companies out there to help build your credit scores as a young adult, this is just one option out there to explore. Finding the right credit card for you and your needs will take research and patience. Consult a trusted guardian or advice from a relative about the options out there and establish boundaries for yourself. For families, this is a great way to start the conversation on finances and understanding a budget while away from home. Additional resources on student loans and credit building cards, you can follow the link.
A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.
Article by Breana Washington
Do you have questions about your credit report? If you would like to speak with one of our attorneys or credit advisors and go through a free consultation please give us a call at 1-800-994-3070 we would be happy to help.