Do student credit cards build credit?

[Tammy]

Or do I need a real credit card? I’m planning on buying a house after I graduate.

[Tracy Winters]

Any credit card builds credit

With one exception (prepaid credit cards) – all credit cards build credit.

Secured credit cards, student credit cards, retailer’s credit card, store credit cards – they all build credit.

You need at least two years of timely payments to have a decent score. However; if you only have one account, your credit file will be too “thin”, and you may not qualify for large loans, especially a mortgage.

Mortgage lenders look at more than just your score. You will need a clean credit report (no delinquencies or other derogatory items) and sufficient activity on your report – at least 2 or 3 credit cards (try getting a store card) and at least one installment loan (either a student loan or a car loan).

When it comes to getting a mortgage approved, you will need to demonstrate a minimum of 2 years stable employment history, and sufficient income. These factors may have more weight on the lending decision than your credit score.

Hope this clears things for you.

[Author]

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