We are living in an era where everything has changed or evolved including the duties and responsibilities of students. Students now are more smart and ambitious about their future. Nowadays many students are interested in getting credit cards and want to build their credit history as early as possible. So a student credit card will be the best solution for students who want to build their credit because it is easier to get approval for a student credit card than a traditional credit card. However, when you are applying for a credit card you have to provide information regarding your income. So, as a student what you can put for income on the student credit card application?
Income is a very vital piece of information for credit card applications. As a student you can put for income on a credit card application is full or part-time jobs, investment dividends, scholarship money, social security payments, pensions from deceased relatives, and public assistance payments. You can also put the money from grants as income depending on the credit card company. While applying for a student credit card, you should check out what is considered income so that you have the best chance of getting a credit card.
What Can A Student Add In Income When Applying For A Credit Card?
When you are trying to get a student credit card, the credit card company will want to know your income. Because your income will decide whether you will be eligible for a credit card and what the interest rate will be. Moreover, information about your income will help the credit card company understand if you will be able to keep up with payments on your credit card. Moreover, it also determines how big your credit line will be. As a student, you might not have a job or you might work as a part-timer. So your income might be low but if you apply for a student credit card then you can claim more than just your own income from a job.
Apart from your job income, if you get any financial help from your parents or legal guardians then you can add the amount as your income on the credit card application form. If your parents add some amount of money as a credit to your account regularly then it will be counted as income. You can also count other financial aid as your income like scholarships from the college, investment dividends, etc. You should try to contact the credit card company to find out the minimum income range for a student credit card. This information will help you understand if your income qualifies for the minimum requirement or you have to increase your income.
Minimum Income For The Approval Of Credit Card
Unfortunately, there is no set amount of income or minimum income range for guarantee approval of student credit cards or any other type of credit card. Usually, the minimum income requirement depends on the credit card issuing company and it varies from bank to bank or institute to institute. When you apply for a new credit card; the card-issuing company checks your application and income to determine whether you will be able to afford payments on your credit card. Basically, the approval of a credit card depends on how much disposable income you have after paying for necessities, like rent, tuition fees, etc. This disposable income could be as little as $100 or more depending on the credit card company.
So if your income is high, then you will have a better chance of being approved for a credit card because high income means more disposable income after all the monthly expenses. Moreover, if your income is high then you might get a higher line of credit. Therefore, when you are applying for a credit card, you must be honest about your actual income. You should understand that a line of credit can very quickly turn into debt if you can’t afford to pay it off. Therefore, you must keep your line of credit within your financial limits.
How To Get A Student Credit Card
Getting a student credit card is much easier than you think. You can apply for a new credit card online without any hassle and might be getting approved within minutes. If you want the application process to go smoothly then you must follow the below steps –
1. Check Your Credit Report
2. Compare Student Credit Cards
3. Review the Issuer’s Eligibility Requirements
4. Collect Documentation
5. Co-Sign Your Application, if Needed
6. Submit Your Application
1. Check Your Credit Report
The first step of applying for a credit card is to check your credit report. You must review your credit report for 100% accuracy. If there is incorrect information on your credit report then it will make it very difficult to qualify for a credit card. Moreover, the information on your credit card is also used to calculate your credit score. You can freely check your credit report and credit score. You don’t have to pay for a credit report check. You can easily check your credit report from all three major credit bureaus – Equifax, Experian, and TransUnion for free. If there is an error on your credit report then you can dispute it and correct the information before applying for a student credit card.
2. Compare Student Credit Cards
There are various types of student credit cards available on the market. So, before applying for a credit card, you should compare all the available options. When picking a credit card, you should consider the below factors –
a) Annual Percentage Rate (APR): APR can be high for student credit cards and it has an impact on how much interest you have to pay.
b) Fees: Many student credit card charges annual fees, setup fees, or monthly maintenance fees while other cards don’t charge any fees or have fewer maintenance fees.
c) Rewards: Though it is very rare, there are few student credit cards available that allow you to earn rewards on certain purchases. If you are interested in rewards then you should check them before applying for a card.
3. Review The Eligibility Requirements
When applying for a student credit card, you must check the eligibility requirements. Usually, the student credit card eligibility requirements vary from issuer to issuer but you have to fulfill some common requirements like –
a) You must be at least 18 years old
b) You must be currently enrolled in college
c) You must have a source of income or a co-signer
d) You must have a Social Security number, etc.
4. Collect Documentation
When you are applying for a student credit card you have to provide/submit documentation like proof of income, college enrollment, etc. So, collect all the required documents to save time and avoid the hassle. You might also have to submit documents like W-2 tax forms, a recent pay stub, and your college acceptance letter or transcripts. You don’t have to submit the actual documents but you will require them when to fill out the application.
5. Co-Sign Your Application, If Needed
If you are below 21 years old, or your income is low then you will need a co-sign for your credit card application from your parents or legal guidance. A co-signer can be a parent, relative, or even a close friend as long as they have a reliable income and are at least 21 years old.
6. Submit Your Application
As I have said before, you can submit your student credit card form online. Once, you submit the application form; it might take a few minutes to know the decision. If your application requires further review then it might take a longer time to process your application. Once your application is approved, the credit card company will mail the card to you. If your application is rejected then you will receive a letter containing an explanation of why your application is rejected.
FAQs About What To Put For Income On Student Credit Card Applications
1. Do Student Loans Count As Income?
A student loan doesn’t count as income for a credit card application because it’s not income, it’s a debt. So, if you have a student loan then you can’t put income on a student credit card application. Though you might use the student loan for personal expenses that doesn’t mean it is an income.
2. What Portion Of Scholarship Or Grant Money Counts As Income?
There is no exact answer to this question. Different credit card Companies consider a different portion of a scholarship or grant money as income for credit card applications. There are few companies that don’t count grant money as income. So the best for you is, you can ask or call the credit card company directly to have a clear idea about the scholarship or grant money.
3. What Is The Age Requirement For A Student Credit Card?
The minimum age requirement for a student credit card is at least 21 years old. If you are below 21, then you will need a co-signer for your credit card application. The co-signer can be your parents, guardian, etc.
4. What Are The Most Accessible Credit Cards For Students To Get?
Some of the most accessible credit cards that students can get easily are Chase Freedom; discover it, Petal, Deserve, Master card for students, Greenlight Debit card, etc.
References:
1. https://www.bankrate.com/finance/credit-cards/what-to-put-for-income-on-student-credit-card-application/
2. https://campinghiking.net/credit/what-to-put-for-income-on-credit-card-application-student/
Last Updated on February 6, 2022 by
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
