Build Credit in Utah, United States: Secured & Student Cards —

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

Building credit is a critical step for individuals in Utah, especially for young adults and those new to credit. Two popular options for establishing credit are secured credit cards and student credit cards. This article will explore the categories of these cards, typical credit scores, APRs and fees, application steps, and more.

Card Categories

1. Secured Credit CardsSecured credit cards are designed for individuals with limited or no credit history. They require a cash deposit that serves as your credit limit, minimizing the risk for lenders.

Features:
- Deposit Requirement: Typically ranges from $200 to $2,500.
- Credit Limit: Usually equal to your deposit.
- Credit Reporting: Most secured cards report to major credit bureaus, helping you build your credit history.

2. Student Credit CardsStudent credit cards are tailored for college students and offer a way to build credit while in school. They often have lower credit score requirements and may come with rewards.

Features:
- No Deposit Required: Unlike secured cards, student cards do not require a cash deposit.
- Rewards Programs: Some student cards offer cashback or points for purchases.
- Educational Tools: Many providers offer resources to help students manage their credit responsibly.

3. Cashback Credit CardsCashback credit cards provide a percentage of your spending back as cash rewards. They are great for those who want to earn rewards on everyday purchases.

4. Travel Credit CardsTravel credit cards offer rewards in the form of points or miles that can be redeemed for travel-related expenses. They are ideal for frequent travelers.

Typical Credit Scores

In Utah, as in the rest of the United States, credit scores typically range from 300 to 850. Here’s how these scores generally break down:

- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Excellent

For secured and student credit cards, it is common for issuers to accept applicants with credit scores in the fair to good range (580-739). This makes them accessible for those beginning their credit journey.

APRs & Fees

Understanding Annual Percentage Rates (APRs) and fees is crucial when choosing a credit card. Here’s what you can typically expect for secured and student credit cards in Utah:

Secured Credit Cards- APRs: Ranges from 15% to 25%, depending on the issuer and your creditworthiness.- Fees: May include an annual fee (usually $25 to $50) and late payment fees (around $25).

Student Credit Cards- APRs: Generally range from 14% to 24%.- Fees: Some student cards may have no annual fee, while others may charge around $20 to $30.

Note: Always read the terms and conditions to understand your specific card’s fees and APRs.

Application Steps & Documents

Applying for a secured or student credit card in Utah is a straightforward process. Here are the typical steps involved:

1. Research and Compare Cards- Look for cards that fit your needs (secured vs. student).- Pay attention to APRs, fees, and rewards.

2. Check Your Eligibility- For secured cards, you may need to provide a deposit.- Student cards often require proof of student status, such as a student ID or enrollment verification.

3. Gather Required Documents- Identification: Government-issued ID (e.g., driver’s license or passport).- Social Security Number: Needed for credit history checks.- Proof of Income: Pay stubs or bank statements may be required, especially for student cards.

4. Complete the Application- Fill out the online or paper application with your personal information and financial details.- Make sure to provide accurate information to avoid delays.

5. Wait for Approval- Approval can be instant or take a few days. If approved, you’ll receive your card in the mail.

6. Make Your Deposit (for Secured Cards)- If you’re applying for a secured card, you’ll need to make your deposit before your card is activated.

FAQs

1. What is a secured credit card?A secured credit card requires a cash deposit that serves as your credit limit. It's designed for individuals with limited or no credit history.

2. How can I build credit using a secured credit card?By using a secured credit card responsibly—making timely payments and keeping your balance low—you can build a positive credit history.

3. Can students apply for credit cards?Yes, many financial institutions offer student credit cards specifically designed for college students, often with lower credit score requirements.

4. What should I look for in a student credit card?Look for low APRs, no annual fees, and any rewards programs that may benefit your spending habits.

5. How long does it take to build credit?It can take several months to build a credit score. Regularly using your credit card and making on-time payments will help improve your score over time.

6. What fees should I expect with these credit cards?Secured cards may have annual fees and late payment fees, while student cards may have similar fees but some may not charge an annual fee.

7. Is it possible to get a credit card with a low credit score?Yes, secured and student credit cards are accessible options for individuals with lower credit scores, typically in the fair range.

Conclusion

Building credit in Utah through secured and student credit cards is a practical approach for those starting their financial journey. By understanding card categories, credit scores, APRs, fees, and application steps, you can make informed decisions that will benefit your financial future. Always remember to use credit responsibly to establish a solid credit foundation.

About the Author

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