Prepaid Credit Cards

• One way a student can obtain a credit card is to open a prepaid account. These cards are based on money you deposit in a bank, which issues a credit card with a limit up to the amount you have on deposit. If you do not have any verifiable income or anyone willing to open a credit account with you, this might be your best option until you have established a good credit history.
  
  

Co-Signer Credit Cards

• If you do not have the money for a prepaid card card but you know someone willing to guarantee that payments will be made to the credit card account, you can ask that any adult co-sign with you. You will be the primary owner of the account, and you will be primarily responsible for the payments. However, if you don't make the payments, the bank will pursue the co-signer for repayment.
  
  

Younger Than 21

• In 2009, to protect inexperienced borrowers, Congress passed many credit card account reforms. Included were rules on issuing credit cards to people younger than age 21. Basically, a bank cannot issue a card to someone younger than 21 unless that person has a job or other income sufficient enough to repay the debt, or if a co-signer 21 or older has means to repay the debt.
  
  

Credit Card Dangers

• Obtaining a credit card as a student can be an effective way to establish credit history. However, there are dangers. Using your credit card can be a convenient way to immediately obtain what you want, but sooner or later you must pay back the debt. Uncontrolled or unwise use of a credit card as a student could leave you in extreme debt that could take years to pay off, or with bad credit that could take years to repair.