Building, boosting, and maintaining a good credit score is crucial for one's future if done responsibly. However, mishandling credit can make future corrections significantly more challenging. Our previous post Credit Score: Boost Your Financial Reputation discussed the importance of credit scores and how to improve them. But where does one start their credit journey? Here are some ideas.
- Choose a suitable credit card
- Apply and obtain the card
- Understand the responsibilities involved
- Value your credit score
- Practice smart credit card usage for future financial flexibility
There are many different options for first-time credit card owners such as student credit cards for higher education students as well as non-student credit cards, both of which have options that do not require any existing credit history to apply.
A Few Examples Student Credit Card Options
Discover it Student Cash Back—this card offers the following:
- No annual fee
- 5% cash back on a quarterly category (requires activation each quarter) and maximum cash back
- 1% cash back on all other purchases
- Unlimited cash back match after the first year
- Flexible cash back redemption options
- Cash back does not expire
- No late fee on your first late payment
- No foreign transaction fees
- No prior credit history required
This card is best for students who have a little extra time and can remember to keep up with the changing 5% category cash back each quarter, which needs activation. For this card to be beneficial and worthwhile for students, attention and understanding is needed.
Capital One Quicksilver Rewards for Students — this card has similar offerings to the Discover it Student Cash Back card but requires less attention, in turn offering fewer rewards with lower maintenance. This card offers the following:
- No annual fee
- 1.5% unlimited cash back on all purchases
- Earn 10% cash back on Uber and Uber Eats
- $50 cash bonus after spending $100 in the first 3 months
- Flexible cash back redemption options
- Cash back does not expire
- No foreign transaction fees
- No prior credit history required
Non-Student Credit Card Options
Non-student credit cards are a bit less exciting than student credit cards. This is because as a non-student, it is much more difficult to obtain a credit card without previous credit history. Co-signing for a credit card for a child or someone needing credit help was common in the past, but this is now not generally allowed.
Chase Freedom Rise — unlike most non-student credit cards with no prior credit history needed, this card does not require one to put down a deposit that matches one’s credit limit. This card offers the following:
- No annual fee
- 1.5 % cash back on all purchases
- $25 statement credit when enrolling in automatic payments
- No prior credit history required
What now?
Remember, having a credit card requires great responsibility that can set you up for success in the future or it can set you back and create massive obstacles later in life. Whether you are getting your first credit card for yourself or encouraging your child to do so, make sure the credit card owner has an adequate understanding of what credit is and how it is to be used properly. If you are unaware of the importance of credit or do not believe yourself to be responsible enough to handle it, DO NOT get a credit card.
Alina Shick
