If you are trying to decide between a Student credit card versus Secure credit cardsyou need to know that these two types of credit cards are similar, but not the same. If a student’s credit card is usually an unsecured card that does not require cash deposits as collateral, then a secured credit card requires a minimum deposit (usually $49-200) to establish a line of credit on the card.
Secure credit cards have one advantage that makes them a better option for a wide range of people. They are the easiest to be approved of any kind of credit card available today. The advantages and disadvantages of secured credit cards and student credit cards are as follows: This way you can determine which type is best.
When to choose a student card
Student credit cards are for students who want to start Building Credits For the future. Students tend to be approved with minimal credit history, and some issuers even approve applicants who don’t even have a credit score yet.
Student credit cards tend to have low limits and less benefits, as they are aimed at people who have not yet built their credit history. However, many student credit cards are charged Annual fees And we offer free spending and free rewards Credit score Tracking and other credit-related tools.
When to choose a secure card
Student credit cards are for students who want to build credit, but secure cards are for students or others who help build or repair credits. Secure credit cards Because of ease of approval, it is often sold to people with low credit scores and poor credit due to past mistakes.
A secure credit card requires cash deposits to start, but if your account is closed in good condition or upgraded to an unsecured account, the deposit will be refunded. Protected credit card issuers usually report card activity to the credit department. This means that cardholders can build credits with responsible use. Some secure cards offer rewards and do not charge an annual fee.
Student and protected credit card eligibility requirements
The application process for both students and protected credit cards is relatively similar. Although specific requirements depend on the issuer, the following lists some of the most common requirements for both types of cards:
| Eligibility requirements | Student credit card | Secure credit cards |
|---|---|---|
| Proof of income (may be from a full-time or part-time job, scholarship, or grant) | yes | yes |
| If you are under the age of 21, you will be co-signed. | yes | yes |
| Proof of registration | yes | no |
| social security number | Yes, we may allow international students to replace them | yes |
| US Bank Account | no | yes |
| Cash deposits | no | yes |
Alternative ways to build credits
If you find it difficult to create a decision between a secure card and a student card and want to consider more options, here are some alternative ways to build credits.
Become a certified user
Become Certified Users About accounts of trusted friends and family Helps you create credits.
Adding you to your card as a certified user will essentially have the opportunity to “piggyback” your monthly payments, adding depth to your own credit report. But it works in both ways – if they use the card irresponsibly, it can damage your credit. Make sure that the primary cardholder you agree to add has Good credit score A long history of responsible use.
Consider a credit builder loan
Credit Builder Loan Do you make monthly payments to your savings account or certificate of deposit (CD) in your name? The loan issuer reports the payment to the credit department. In the end, you retrieved the money you paid for the loan and deducted the nominal amount and fee.
Use the app to build credits
Some Credit Building App You can also raise your legs when it comes to credit improvements, and in many cases for free. As an example, Experian Boost Reports such as subscription services, rent and utility bills for Experian Credit Reports mean that responsible payments on these invoices will help you build your credit.
Please check the starter credit card
You can also view other starter credit cards that are unsecured but not necessarily for students. Starter cards tend to offer similar credit building opportunities to students and secured cards, with basic perks and low initial credit limits.
Here is an example of a starter credit card:
Conclusion
If you are arguing in between Student credit card and Secure credit cardsyou need to know that either option will help you build your credits. Both types of cards can move on to cards with better perks and rewards as they help you improve your credit score with responsible use and learn positive habits.
The key to using a secure credit or student card is to keep your debt low and always pay your monthly balance on time. Do these things and you will be on your path to improve your credits.
*Petal 1Visa® credit card information is collected independently by Bankrate. Card details have not been reviewed or approved by the card issuer.
