Getting The Lowdown On Obtaining A Student Credit Card With Cosigner

Oct. 14, 2011 - PRLog -- There are plenty of benefits to having a student credit card, such as enabling cardholders to pay their gas and food bills, textbooks, furniture, and more. College students need credit cards in many cases, but applicants stand a higher chance if they have a cosigner.

What should you do now? You first need to find someone close who agrees to cosign for you. This can be a guardian, parent, or another relative. You do not have to be related to the person who will cosign for you; so, you can ask a colleague or a friend as well. What is important here is that this person has a very good or excellent credit score, holds a credit card, and has outstanding repayment history. Ask them to cosign for you, making it clear that they will be the ones to pay back your debt in case of default. You should try and convince your relative or friend that this is very unlikely to happen. Discuss your sense of financial responsibility and maturity.

If you have a cosigner already, it is time to shop for student credit cards (http://www.creditcardreview.ca/creditcard-2-2-2-1-2-2-2-2/). Check with the local banks and big banks in Canada (e.g. Bank of Montreal, CIBC). When you consider credit card offers, two things are important - whether the credit card suits you and whether you are a likely candidate. You should also compare interest rates, annual fees, rewards plans, etc. Ideally, you will choose a credit card with no annual fee. Even if you do not find such a card, some credit card issuers will waive the annual fee, provided that you are charging items on the card within a period of one year. Be sure you understand all fees that go with your credit card of choice. Almost all credit cards have over-the-limit and late fees. However, some cards go with unfair fees, for example, an account maintenance fee.

With these details in mind, back to applying. Applying for a credit card for students is much similar to when you apply for other credit card types. The difference is that your cosigner has to call customer service, dialing the number on the back of their credit card. The cosigner has to inform customer service that they want to cosign for you.

Keep in mind that not all credit card issuers allow applying with a cosigner. Some companies do not service joint accounts. Other issuers will ask that you have a cosigner, even when they have mailed you an offer. But do you really need a cosigner? You will be more responsible if you have one. You are less likely to neglect your card knowing that your parents or friends will pay the bill.

What else to consider? It is a good idea to have a low credit limit in the beginning. This way, you will learn not to overcharge. When the credit limit is high, you may be tempted to charge way more than you can actually afford, leading to debt.

If you are interested in getting a credit card, visit students credit to get more information - http://www.creditcardscanada.net/what-is-a-student-credit...

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Canadian credit card directory is listing credit cards offered by major Canadian banks and financial institutions, as well as credit cards offered by Canadian stores.
http://www.creditcardreview.ca/