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Tuesday, 6 March 2012

Student Credit Cards With Cosigner

The Credit Card Accountability, Responsibility and Disclosure Act of 2009 made it more difficult for students and others under 21 to obtain credit cards. Before the act, credit card companies were allowed to set their own lending criteria, and they heavily marketed credit cards to college students. That led to increasing levels of debt for students, many of whom were already burdened by college loans. As a result students now have to prove they have the independent income to support a credit card or find a parent or someone else with excellent credit to co-sign.

How to Get a Student Credit Card by Using a Cosigner:

1.Find a co-signer.
A parent, guardian or other relative are all good choices, but legally the person does not have to be related to you. Someone who already has a credit card in excellent standing is an ideal prospect. Tell your prospective co-signer that you need help obtaining a credit card. Make it clear to the co-signer that he will be responsible for the debt if you default. Convince your relative or friend that you will not default by talking about your maturity, credit worthiness and sense of responsibility.

2. Shop for a credit card.
Consider local banks and credit unions and also review credit card comparison websites (see resources). Identify credit cards that meet your needs. Interest rates are an important criteria, but also consider annual fees and amenities such as rewards programs.

3. Apply for a card.
The process could be very simple if you are applying to the same credit card company your co-signer uses. Simply have the co-signer call the customer service number on the back of her card and tell the representative that she wishes to co-sign for a prospective new card holder. The representative will take information from both of you and review your respective credit files. A decision could be available in minutes or a few business days.

4. Apply for a different card if you would rather not use your co-signer's card company.
Apply in person with your co-signer at a local bank or credit union or apply by phone with other card companies. Make sure your co-signer is with you when you call. Both of you will be subjected to credit checks, and a decision could be available immediately or in a few days.

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