Do doctoral students qualify for student credit cards?

[ReadingLisa]

Do they? 

[danieleWrites]

Doctoral students are students. Of course, whether or not they qualify for a student credit card depends entirely on the policies of the card issuer.

[TakeruK]

Yes, in general, PhD students qualify for the "student status" required for a student credit card. Whether or not a student qualifies for credit in general is a different question. However, it's good to note that most people qualify for a regular credit card with a lower income than some PhD stipends, so unless you did something to your credit in the past, I'd say most PhD students should be able to get a credit card. My advice is that you should get a credit card as soon as you are able to, and begin building credit!

[ReadingLisa]

Yes, in general, PhD students qualify for the "student status" required for a student credit card. Whether or not a student qualifies for credit in general is a different question. However, it's good to note that most people qualify for a regular credit card with a lower income than some PhD stipends, so unless you did something to your credit in the past, I'd say most PhD students should be able to get a credit card. My advice is that you should get a credit card as soon as you are able to, and begin building credit!

 

Thank you! That's actually a problem for me right now as I don't actually have credit. I've been too paranoid to get a credit card, thinking I'd spoil my credit, but now that I need credit (to rent an apartment in another city) it might be too late. 

[GeoDUDE!]

Thank you! That's actually a problem for me right now as I don't actually have credit. I've been too paranoid to get a credit card, thinking I'd spoil my credit, but now that I need credit (to rent an apartment in another city) it might be too late. 

 

 

I applied for the first time 4 months ago and got it within a few days; just provide proof of income and entire the wide world of fake money!

Edited April 3, 2014 by GeoDUDE!

[themmases]

Thank you! That's actually a problem for me right now as I don't actually have credit. I've been too paranoid to get a credit card, thinking I'd spoil my credit, but now that I need credit (to rent an apartment in another city) it might be too late. 

 

I did the same thing, but once I looked into it I found I was actually able to qualify for a regular credit card (I do have a full-time job right now). If I had gotten denied for this one, there are also secured cards available to people with limited credit history-- you give the card issuer a deposit and usually the deposit is your credit limit. After a year of using it responsibly, you should be able to convert to a normal card and get your deposit back. Most of those cards do report but it isn't obvious that it's a secured card on your credit report, so you can build credit by using them.

 

I used the boards at Credit Card Forum to get an idea of what first-time credit users were getting approved for and liking, and ended up with a Discover card.

 

Also, in IL at least not having a credit history didn't prevent me from getting an apartment or signing up for utilities. In college, the gas company even claimed my "good credit" meant I didn't have to give them a deposit when I opened my account. It seemed like these places were looking to avoid bad credit and red flags, rather than hold out for people with known great credit.

[juilletmercredi]

My credit was actually pretty bad emerging from undergrad.  For the first 3-4 years of grad school I couldn't get a credit card, but I was able to get one last year - I want to improve my credit before I'm on the tenure track and wanting to buy a house and car and things - and they've since raised my credit limit.  So if I can get one from weak credit, you can get one from no credit.  All you have to do is show proof of steady income - and even then, "proof" is relatively.  I got my credit card online and typed in my income from the online application; it's not like I showed them check stubs or anything.

 

I wanted that Discover it card but my credit wasn't good enough, lol.  I have a Barclayscard, which has the benefit of free FICO scores.  That satisfied me as I got the card to build my credit, although the interest rate is understandably high because it's designed for folks with fair to middling credit.

 

Also, whether or not you need good credit to get an apartment depends on the market.  In an unsaturated market, or a market with lots of vacancies, you may be able to pretty easily secure an apartment without credit or with fair credit.  I think that in places like that, it's just like themmases said; they're looking to avoid people with red flags like evictions, defaults, liens, etc., and not people who missed a couple payments on a $600 credit card 4 years ago.  I just secured an apartment in rural PA for my postdoc with fair credit with no issues, and a few years back when my husband was in college he was able to get an apartment in suburban Atlanta with no credit and just $250 deposit.

 

But in a completely saturated/low-vacancy market, it's more difficult.  but in NYC the landlord wouldn't even look at my credit - my income alone was so low that I needed a guarantor for the apartment, and my stipend was actually pretty high as stipends go ($31,000).  NYC's also like that because tenancy laws heavily favor the tenant and it's really difficult to evict someone, even if they aren't paying you.  Landlords can lose up to 6 months' rent if they have a hard-to-evict tenant on their hands who's not paying, but because the market is so saturated they also have dozens of people to choose from.  If they don't like you today, someone else can walk up tomorrow.  So they tend to have very stringent policies when it comes to renting out places.  You also have to pony up a lot more money up front (I had to give them first and last month's rent AND a security deposit!)

[ReadingLisa]

Thank you guys for the suggestions. Right before I started thus topic I had applied for the Discover It card but was declined. Today I actually checked my credit score and as I suspected, I have no credit history. However, the website (creditkarma) recommended the Capital One Journey Student card. I was just approved for it with a $300 spending limit. It's far from much, but I'm still happy!

[TakeruK]

Thank you guys for the suggestions. Right before I started thus topic I had applied for the Discover It card but was declined. Today I actually checked my credit score and as I suspected, I have no credit history. However, the website (creditkarma) recommended the Capital One Journey Student card. I was just approved for it with a $300 spending limit. It's far from much, but I'm still happy!

Congrats My very first credit card (when I turned 18..or was it 19?) had a $500 limit, but that's how you build it up. Assuming you will use the card responsibility (i.e. pay it off every month) your credit should build up really fast. You might even start getting spam mail soliciting you to apply for their cards in a few months or so. Most of these offers and the Capital One cards tend to have really crappy terms (very high interest rate, no real rewards/benefits etc.). I would say that you should consider switching to a bank-issued student credit card when you can. 

 

Another good thing to note is that your credit score/history is stronger the longer you have credit and you should never cancel your first credit card. Since this card might not be the greatest, you might not want to keep it and if you get a bank-issued card in the next few months or so, it won't make much of a difference in the long run. However, if a few years down the line, you want to get another credit card, don't cancel your first card / close the account. Keep it there and never use it because this extends the length of your credit history (if the card requires you to use it once every X months, then do the minimum to keep it open).

 

Finally, usually people can request a credit limit increase every 6 months or so. Probably a good idea if you are finding that $300/month limit isn't very useful. Also, the bigger credit limit you have, the better your history looks (as long as you don't carry large balances) because if e.g. a bank trusts you with $2000/month,  then someone else would be more likely to trust you too. If you pay off your balance once a month when you get your statement, I think the ideal ratio is to make your regular monthly statement 1/4-1/3 of your total limit--i.e. if you spend $1000/month and you put it all on your card, you would want your limit to be like $3000-$4000.

[Djentbot]

I have absolutely nothing of value to contribute to this thread, but just wanted to say I like your avatar ReadingLisa.

[ReadingLisa]

Congrats My very first credit card (when I turned 18..or was it 19?) had a $500 limit, but that's how you build it up. Assuming you will use the card responsibility (i.e. pay it off every month) your credit should build up really fast. You might even start getting spam mail soliciting you to apply for their cards in a few months or so. Most of these offers and the Capital One cards tend to have really crappy terms (very high interest rate, no real rewards/benefits etc.). I would say that you should consider switching to a bank-issued student credit card when you can. 

 

Another good thing to note is that your credit score/history is stronger the longer you have credit and you should never cancel your first credit card. Since this card might not be the greatest, you might not want to keep it and if you get a bank-issued card in the next few months or so, it won't make much of a difference in the long run. However, if a few years down the line, you want to get another credit card, don't cancel your first card / close the account. Keep it there and never use it because this extends the length of your credit history (if the card requires you to use it once every X months, then do the minimum to keep it open).

 

Finally, usually people can request a credit limit increase every 6 months or so. Probably a good idea if you are finding that $300/month limit isn't very useful. Also, the bigger credit limit you have, the better your history looks (as long as you don't carry large balances) because if e.g. a bank trusts you with $2000/month,  then someone else would be more likely to trust you too. If you pay off your balance once a month when you get your statement, I think the ideal ratio is to make your regular monthly statement 1/4-1/3 of your total limit--i.e. if you spend $1000/month and you put it all on your card, you would want your limit to be like $3000-$4000.

 

Thanks for all of this great advise! I'll definitely keep it in mind.

 

So, I actually only plan on using the Capital One card to pay my monthly cell phone bill ($75), and then I'm hoping to pay the balance before the end of the month. So I don't think I need a card with a larger spending limit for now. I will apply for a bank issued credit  card in a few months though, as you suggested. 

 

 

I have absolutely nothing of value to contribute to this thread, but just wanted to say I like your avatar ReadingLisa.

 

Haha! Right back at ya!

[cesarchavez90]

I have USAA student credit card. It's great but I have a 1000.00 limit, which isn't as much as other credit cards because the interest is low. Seek them out! I LOVE them

[maelia8]

I have USAA too (for regular banking as well as my credit card), and I love it! They have amazing customer service via telephone and internet, their rates are very reasonable (especially for overseas withdrawals), and they allow you to withdraw from any ATM up to six times per month and they refund you the ATM fees

[danieleWrites]

Credit cards aren't the only way to build credit. You can get a small loan from your bank, secured or unsecured, and put the money in the bank to pay the loan back with. Credit cards are problematic in many, many ways, but they're also good in a variety of ways. If you have student loans, you have credit, even if you haven't paid on them yet. You may pay student loans, even if they are in deferment. If you don't have a student loan, you can get one to build credit with. They're generally very low interest (compared to credit cards) and you do not have to take the full amount offered to you. They are deferred while you're in school full-time, but, again, you don't have to not pay them while they're deferred. The interest rates on these loans runs in the single digits. Most credit cards will charge you in the double digits.

 

If you're interested in a card, and you have student loans or want to contribute to a 529K account (for yourself or your future children or a relative's child), Sallie Mae has has this thing called UPromise, which offers a credit card at a generally low rate for students. 1% of purchases goes toward the loan or a 529k. The reward is nice, but the interest rate is much friendlier. Shop around. People with little credit rarely get good rates, though.

 

Finally, if you have enough income, start an IRA or other retirement planning now. Even if you can only stick 50 bucks in a month, you're building something. 50 a month is 600 a year, plus whatever interest it earns. If you wait until you have a solid job to contribute, you're going to lose quite a bit.

[serpentina02]

I have USAA too (for regular banking as well as my credit card), and I love it! They have amazing customer service via telephone and internet, their rates are very reasonable (especially for overseas withdrawals), and they allow you to withdraw from any ATM up to six times per month and they refund you the ATM fees

Do you know if it is fairly easy to get this credit card with limited/no credit history?

[maelia8]

I didn't have any when I got the card, but I did already have a regular account with them and my parents bank there too, so that might have something to do with it? It's a bank for military families, so they might have different standards/requirements than most normal banks.

[Crucial BBQ]

Thank you! That's actually a problem for me right now as I don't actually have credit. I've been too paranoid to get a credit card, thinking I'd spoil my credit, but now that I need credit (to rent an apartment in another city) it might be too late. 

Unless things have changed having no credit is worse than having bad credit.