Credit CARD Act Changes

• Until 2010, college students frequently received offers encouraging them to sign up for a credit card in return for a free T-shirt or tote bag. However, in 2009, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act was passed by the government, and now credit-card marketing is limited on campuses. Bankrate also notes that anyone under 21 must demonstrate an independent income to be approved for a card, or co-sign with someone older.
  
  

Card with Parents or Guardian

• Because of the CARD Act, it is now more difficult for young people to get their own credit card. Bankrate notes that many students are now sharing credit responsibilities with their parents or guardians. Some parents choose to add a student as an authorized user to an existing card. This allows parents to keep an eye on spending and help teach good credit habits. Other families decide to have a parent co-sign the application. This will help build the student's credit history; however, if the student is late with a payment it will adversely affect the parent's credit history.
  
  

Secured Credit Card

• For a young person with a job, or a newcomer to the U.S., a secured credit card can be a useful tool for building credit. A secured credit card requires a deposit, which is held as collateral. The credit limit is typically that deposit, although it may go up with on-time payments. Some cards have high annual fees or interest rates, so it pays to shop around. Bankrate.com has a list of secured cards including the Applied Bank Platinum Zero Secured Visa, which has no application fees and currently offers a 0-percent interest rate.
  
  

Student and Newcomer Credit Cards

• For those with an average credit history, there are some cards available for those with a limited credit history. Capital One offers a Cash Rewards for Newcomers card, which can help those new to the U.S. build their credit history. It offers 1 percent cash back on purchases, and 2 percent back on travel purchases. There is no annual fee, and the variable interest rate is currently 24.9 percent. The Journey Student Rewards card from Capital One gives students 1 percent cash back on purchases, plus a bonus if payments are made on time. This card offers a variable interest rate of 19.8 percent, with no annual fee.