Tips, best credit cards for college students - Action News 5 - Memphis, Tennessee

Tips, best credit cards for college students

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(WMC-TV) - College for most students is their first time away from home. Now more than ever, building a good credit history is important.

"Loans mortgages and car loans that we can qualify for but also employers look at credit history insurance companies do," said Odysseas Papadimitriou who runs a finance website called cardhub.com.

He says if a student is out on his or her own for the first time a secured credit card might be the best option.

"It is a normal credit card. The only difference is when you get it, you put a security deposit down the similar way that you put a security deposit down when you rent an apartment," said Papadimitriou.

For example, if a student put a down payment of $500 on a secured credit card, then 500 dollars would be the credit limit for the card holder. The card holder would build up his or her credit paying the bill each month. The safety net is that down payment. Of course, the student can increase credit limit by adding money to the down payment. At the end the cardholder can get that down payment back, or if he or she walks away prematurely the down payment covers your credit costs.

"They also learn how to handle credit in a very responsible way," said Papadimitriou.

Two of the secured credit cards mentioned include Harley Davidson Secured Credit card, it does not charge an annual fee, and Lifemiles visa, it does not have an annual fee the first year and you can earn miles toward free airfare.

Papadimitriou also says prepaid visa cards are like a debit cards. They can be effective, but they build absolutely zero credit history. There are a lot of suggestions for the right credit cards for students in different situations so they can build credit history effectively to see it. Click here to see more.

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