Credit cards are a secure and easy way to get some money in times of need. One can use the credit during emergencies and complete the credit card payment later. One may think credit cards are only used by adults or salaried individuals. Well, many banks offer credit cards for students who aren’t earning yet. Students may need a line of credit for several reasons. For example, students that study far from home wait for their parents to send money. If the money arrives with a little delay, students can use credit cards to meet daily expenses. Read on to know how students can find credit cards in 2022 without any income.
Challenges for Students in Getting Credit Cards
When a bank offers a credit card to anyone, it checks the creditworthiness and repayment capacity. Banks don’t want to offer a credit card to someone who cannot pay the credit card bill timely. For measuring the creditworthiness of a credit card applicant, banks go through the credit score, income statement, and bank statement. A stable job shows the banks that applicants are capable of repaying the credit used.
In the case of students, they neither have a credit history nor an occupation. How will the banks judge the creditworthiness of students if they don’t have any income? Well, good credit history and stable employment are required, for getting general credit cards. Banks know that a student cannot have a stable source of income. However, banks still judge the repayment capacity of students in several ways.
Since banks know that a student will not have a stable income, they offer specialized credit cards to a student. Student credit cards are specially designed for non-working individuals who are still studying. Student credit cards will have different features than regular credit cards. The best part is that you don’t need to be employed for getting a student credit card.
How do Banks Check the Repayment Capacity before Offering a Student Credit Card?
One may think about how banks check the repayment capacity before offering a student credit card. Credit card issuers check the bank account statement of students before offering them a credit card. You may receive funds from parents at regular intervals. By seeing your bank account statement, credit card issuers can identify the repayment capacity. Since students do not have any prior credit history, bank account statements are useful for calculating their creditworthiness.
Know the Credit Card Options for Non-working Students in 2022
Credit cards for students come in different forms. The options for students to acquire a credit card in 2022 are as follows:
• You can get a student credit card with lower interest rates based on your bank account statement. Student credit cards are also available for those studying outside their native country.
• Students can also acquire a credit card in 2022 as a co-signer. Your parents, brother, or anyone with a good credit score can get a shared credit card. You can also become an authorized user of a credit card of your parents or any other related person.
• Many students prefer secured credit cards for meeting daily expenses. You don’t need a prior credit history to acquire a secured credit card. You have to make a deposit which becomes your credit limit for a secured credit card.
What to Know Before Requesting a Student Credit Card in 2022?
Don’t go for the first credit issuer you come across without any research. You need to compare student credit cards from different issuers to choose the best one. Things to consider before requesting a student credit card are as follows:
• Choose a student credit card with less processing and annual fee. You can compare the annual fee and processing fee of several student credit cards to choose the best one. Many banks offer credit cards to students without any annual fee or other charges.
• You will have to pay interest on your credit card balance after the grace period. You can choose a student credit card that offers a long grace period for making payments. You also have to compare the interest rates before applying for a student credit card in 2022.
• You need to know the eligibility criteria before applying for a student credit card. Eligibility criteria differ from one bank/issuer to another for a student credit card. For example, many banks have an age restriction on student credit cards. Besides eligibility criteria, you also need to submit the required documents for getting a student credit card in 2022.
You do not have to visit a bank branch for getting a student credit card in 2022. Via the online interface of the credit card issuer, you can easily apply for a student credit card in 2022. Know more about a credit card for students in 2022!
