If you apply for an instant approval credit card, your credit card application will usually be processed within seconds. In certain cases, more time would be needed to determine whether you qualify for a credit card offer. In order to receive an immediate decision, you typically need to have a very good credit history.

Student credit cards are designed specifically for college students. Student credit cards tend to have lower limits because most students do not have a stable, full-time income. Some card issuers view students as trustworthy borrowers, while others treat them just like any other customer without a credit history. For students who manage their finances well, student credit cards offer convenience of payment and a path to establish a credit history. For students who mismanage their finances, the accumulated credit card debt can become a substantial financial burden over time.

Advantages of using student credit cards:

• Parents often encourage students to get a credit card because they see them as a tool to teach their children about financial responsibility
• Students can use monthly credit card statements to analyze their spending habits
• Credit cards offer the convenience of paying for goods and services over the phone or the internet.

Selected student credit card issuers:
Citibank Student Cards
Discover Student Cards
Capital One Student Cards

Secured credit cards are credit cards for people with bad credit or no credit history. Secure credit cards are backed by a security deposit in order for the consumer to build or to rebuild their credit history. Typically, you can deposit anywhere from a couple of hundred to thousands of dollars into a security deposit and this amount will correspond to your credit line. For example, if you deposit $1000, your credit line will be $1,000.

Before applying for a secured credit card, you should find out what fees come with the card and whether the credit card issuer reports transactions to credit bureaus. If the issuer does not report your activity, the secured card will not help you build your credit history. Most secured credit cards carry an annual fee. Do NOT do not apply for any offers that list a 1-900 number as their contact. The FTC warns of reported scams in which companies advertise 1-900 numbers and consumers end up paying for placing calls to a company that never had any intention of giving out secured credit cards.

If you are not able to qualify for a secured credit card on your own, you can ask a trusted friend or a family member with good credit history to become your cosigner. Cosigners will be responsible for your debt in the event that you do not repay your balance. Once you get approved for a secured credit card, use the credit card responsibly. Keep track of your expenses and make sure you pay your bill on time. In a few months, check whether your credit history reflects your payment record. Eventually, when your credit record improves, you should be able to get a regular credit card with better terms.

For the most part, a prepaid credit card can be used just as any Visa, MasterCard or American Express credit card. The main difference is that a prepaid credit card allows you to spend only the amount that you have preloaded with the card issuer. In other words, you cannot spend what you do not own.

Prepaid cards offer a number of advantages:

• Easy approval – issuers do not need to check your credit history, so you do not need to worry about your credit score. Your approval is virtually guaranteed upon verification of your identity.
• Control – if the prepaid card is given by you to your children, for example, you can control how much they can spend and they cannot go over your limit.
• No monthly bills – obviously, prepaid cards are preloaded with money, so you do not pay any bills and you cannot incur any late payment fees.

While some of the disadvantages of using a prepaid card include:

• Prepaid cards will not repair your credit history – prepaid cards’ activity generally does not get reported to credit reporting agencies
• It is not a source of emergency funds – unlike credit cards, you cannot use a prepaid card as a source money in an emergency
• Additional fees – some prepaid cards may carry a number of different fees: card application fees, monthly maintenance fees, charges for balance loading, ATM withdrawal fees, inactivity fees, minimum required balance fees, to name a few

Features to pay attention to before you apply:

• What are the card fees?
• What are your reload options?
• Is online account management available?
• Can you have additional cards under the same account?
• Does the prepaid card issuer offer bill paying services?
• What are the minimum and maximum balance limits?

Below is a list of popular prepaid cards:
AccountNow Prepaid Card
Vision Premier Prepaid Visa Card
SilverCard Prepaid Mastercard