Q: I'm proud to say my daughter is leaving for college soon and I wanted her to have a credit card for emergencies. But every time she applies for a credit card, she gets declined! What can she do to get her credit card for college?
A: Most young people have a harder time getting approved for credit because they don't have a credit history. However, your daughter should check her credit report for any inaccuracies
that could be making it even harder for her to get approved.
One way to build credit is by getting a department store or gas card. These are generally easier to get than a standard credit card. Just be sure your daughter knows that the interest rates are higher, and it's important to pay off the balance every month. A secured card is probably the fastest way to get credit. With a secured card, you deposit money in a savings account so there's little risk for the lender. Once your daughter establishes responsible payment behavior with these cards, she'll have better luck getting credit down the road.
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