Students who have yet to begin building credit can apply for secured cards to help fund the expense of tuition and other educational expenses. Once a student is enrolled in a program at a college or university, he or she may qualify for a debit card. This type of card allows the user to make purchases using plastic money held in an account. It is generally accepted at all participating schools and colleges. However, students must maintain good credit in order to apply for an unsecured credit card once they have graduated.
What factors go into deciding whether an applicant qualifies for unsecured cards that graduate? If you are on good financial standing, are able to timely pay your bills on time each month, and tend to maintain your credit usage percentage, you may qualify for unsecured credit cards when you graduate. In many cases, once your secured credit cards graduate to an unsecured card the account no longer requires collateral as a guarantee to borrow. If you are not able to secure an unsecured credit card when you graduate, there are other options available to you.
The best credit cards for graduates are often those that offer the most perks. Students who qualify for unsecured credit cards often do not qualify for the best credit cards, though. Some students have poor credit histories and need an alternative to their current cards to gain access to cash to help make their education more affordable. A transfer credit card is often the best option when students lack both a secured credit card and a regular credit card. This allows them to obtain cash on the same day that they make their purchase.
When searching for unsecured cards that graduate to a credit card within 2 years, there are many factors that should be taken into consideration. One of the first steps to finding the best deal is knowing what your score is at the moment. Knowing your current score is absolutely critical in determining which card to choose and how much you will pay in interest. Because people with bad scores have less of a chance of securing low rates, it is important to get a copy of your credit score before you begin looking for an unsecured cards. Once you know your score, you can look through the options that are open to you.
Bad credit scores usually stem from a number of events. Most notably, missing payments on your student loans usually leads to a low credit score. This doesn't mean that you cannot apply for secured cards that graduate to unsecured ones, though. If your history is filled with missed payments and you have consistently made on time payments, then you will most likely qualify for one of the many secured cards that graduate to unsecured credit cards.
Credit cards that graduate to unsecured ones may only be offered to those who have good credit histories. This means you may have to pay a higher interest rate as well as fees and charges. If you don't have a stellar credit history, however, it may be difficult to find good cards that graduate to this level. You may find that you are assigned to a high risk group or even a group with high interest rates.
Once you know your score and see related information, it is time to begin shopping around for the best deal. Use online services to compare secured cards that graduate to unsecured cards. You can also contact the actual bank where you have your checking account to see related information. You want to see if you can transfer your balance over to an unsecured credit card after you graduate. You want to see if you can transfer your balance over within six months after you graduate.
Be sure that you do not exceed the limit on your new card. You should keep track of your limit spending so that you are aware of it at all times. If you get caught out overspending, you will end up in serious debt. The advantage of secured cards that graduate to unsecured ones is that they are designed to have low limits with no long-term commitment to the credit card.