Build Credit in Maryland, United States: Secured & Student Ca

Build Credit in Maryland, United States: Secured & Student Cards — What to Expect

Building credit is an essential financial step for residents of Maryland, especially for those just starting their financial journey, such as students or individuals with limited credit history. In 2025, understanding the various credit card categories available, typical credit score requirements, annual percentage rates (APRs), fees, and application processes can help you make informed decisions. This guide will focus on secured and student credit cards, which are often the best options for those looking to build or improve their credit in Maryland.

Credit Card Categories

1. Secured Credit Cards

Secured credit cards are designed for individuals with little or no credit history. To open a secured card, you'll typically need to make a cash deposit that serves as collateral and determines your credit limit. These cards are ideal for building credit because they report to the credit bureaus, allowing responsible use to positively impact your credit score.

2. Student Credit Cards

Student credit cards cater to college students who are beginning to build their credit profiles. These cards often come with lower credit limits and may offer rewards programs targeted towards student spending, such as cashback on purchases made for textbooks or school supplies. They are generally easier to qualify for than traditional credit cards, making them a good option for young adults.

3. Cashback Credit Cards

Although not specifically aimed at those with limited credit history, cashback credit cards can be an option once you have established some credit. These cards offer cashback on various purchases, allowing cardholders to earn rewards on everyday spending. However, they typically require a better credit score for approval.

4. Travel Rewards Cards

Similar to cashback cards, travel rewards cards are available for individuals with a stronger credit history. These cards provide points or miles for travel-related purchases, which can later be redeemed for flights, hotels, and other travel expenses. Like cashback cards, they usually require a higher credit score.

Typical Credit Scores

When applying for secured or student credit cards in Maryland, the following credit score ranges are generally expected:

- Secured Credit Cards: No minimum credit score is typically required, making them accessible for individuals with a score as low as 300.
- Student Credit Cards: Most issuers look for a credit score of around 580 or higher, although some may offer cards to students with limited or no credit history.

For both card types, maintaining responsible credit behavior, such as making timely payments, can help improve your credit score over time.

APRs & Fees

Understanding the APRs and fees associated with credit cards is crucial for managing your finances. Here are the typical ranges you can expect for secured and student credit cards in Maryland:

Secured Credit Cards

- APR: Generally ranges from 12% to 25%. The exact rate will depend on your creditworthiness and the card issuer's policies.
- Annual Fees: Many secured cards charge an annual fee, typically between $25 and $50, although some may have no annual fee.

Student Credit Cards

- APR: Ranges from 15% to 25%, depending on the card and the applicant's credit profile.
- Annual Fees: Some student cards may have no annual fee, while others might charge between $0 and $39.

In addition to APRs and annual fees, be aware of potential late payment fees, foreign transaction fees, and cash advance fees, which can vary significantly from one card to another.

Application Steps & Documents

Applying for a secured or student credit card in Maryland involves several straightforward steps. Here’s what you can expect:

1. Research & Compare Cards

Start by comparing different secured and student credit cards to find one that fits your needs, focusing on fees, APRs, and rewards.

2. Gather Required Documents

Prepare the necessary documents for your application, which may include:

- Identification: A government-issued ID (e.g., driver's license or passport).
- Social Security Number: Required for identity verification.
- Proof of Income: Recent pay stubs, bank statements, or tax returns to demonstrate your ability to repay.

3. Complete the Application

You can apply online, over the phone, or in person at a bank or credit union. Fill out the application form with your personal information, including your income and employment details.

4. Make a Security Deposit (if applicable)

For secured credit cards, you will need to make a security deposit, which typically becomes your credit limit. Be prepared to provide this payment as part of the application process.

5. Review the Terms

Before submitting your application, carefully read the card's terms and conditions. This includes understanding the APR, fees, and any rewards program details.

6. Wait for Approval

After submitting your application, you may receive an instant decision or wait a few days for the issuer to review your application. If approved, your card should arrive within a week or two.

FAQs

1. What is the main difference between secured and unsecured credit cards?

Secured credit cards require a cash deposit that serves as collateral, while unsecured credit cards do not require a deposit and are typically available to those with established credit.

2. How long does it take to build credit with a secured card?

With responsible use, such as making on-time payments and keeping your balance low, you can start seeing improvements in your credit score within 3 to 6 months.

3. Can I upgrade from a secured card to an unsecured card?

Many issuers allow you to upgrade from a secured card to an unsecured card after demonstrating responsible credit behavior over time.

4. What happens if I miss a payment on my credit card?

Missing a payment can negatively impact your credit score and result in late fees. It’s essential to make at least the minimum payment on time.

5. Are there any rewards available with student credit cards?

Yes, many student credit cards offer rewards programs, such as cashback on specific purchases or bonuses for maintaining a good payment history.

6. What should I do if my credit score is too low to qualify for a credit card?

If your credit score is too low, consider applying for a secured credit card or becoming an authorized user on someone else's account to help build your credit.

7. Is it safe to apply for a credit card online?

Yes, applying for a credit card online is generally safe, but ensure you are using a secure website and look for trusted lenders.

Conclusion

Building credit in Maryland using secured and student credit cards can set you on the path to a healthy financial future. By understanding card categories, credit score requirements, APRs, fees, and application processes, you can make informed decisions that will benefit your credit profile in the long run. Remember, responsible credit usage is key to achieving your financial goals.

About the Author

Marks Toms – Editor-in-Chief
Marks oversees editorial policy, compliance, and fact-checking at bankaccountsopen. Read more articles