Student credit cards will probably be one of the first things you will encounter as you go off to college. This very ?adult? financial tool can be a great help during emergencies when cash is tight and you need to pay for goods or services immediately. As a substitute for cash, it provides a safe and convenient method for purchasing.
How to get the best deal on your student credit card Getting your student credit card is a lot easier than you think but if you're not careful, you could end up with an unsatisfactory deal. To find which credit card is perfect for you, perform a shop comparison by talking to three or four different companies. They all offer different rates so you have to know what is out there to get the most out of your application.
Look for perks and extras at the same cost. When looking for a student credit card, remember that nothing is for free. Whatever comes piggyback on your credit card pretending to be a freebie is not really a gift. You're paying for it and just don't know it.
To make the most of your so-called freebies and perks, look for a student credit card that offers discounts, warranties, flier miles, free gas and other benefits. You may only earn them each time you use your card but they can come in handy in the future once you've accumulated enough.
Choose a student credit card with low annual fees. If you can, go for a no-annual fee credit card provided there are no hidden fees in the offer. You can save a lot if the credit card company agrees to waive it. Watch out for the renewing period when the credit card company charges the annual fee and make sure you know exactly how much and if you can afford it.
Advantages of getting a student credit card Spending and buying power ? student credit cards allow you to buy services and school-related materials even without cash.
Build credit history ? a student credit card is probably your first step in building your credit history and how you manage it will have a significant impact in your future credit rating.
Build confidence and independence ? a student credit card allows you to manage your finances for the first time and helps build your discipline and reliability.
Disadvantages of student credit card A way to spend more than you can afford ? there is always a temptation to spend more than you can afford to pay, even with a credit limit. If your expenses go unchecked, you could end up with a credit card debt that you will find difficult to repay.
A regular cost concern ? as a student, your main concerns probably would be limited to spending money for food, accommodation, gas for your car and other basic expenses. If you have a student credit card you pay at a minimum, you will be saddled with regular payments month after month.
Where to get student credit cards Student credit cards are available anywhere there are banks, schools and credit card companies. You can even apply for one online. Companies have even brought student credit cards into campuses, setting up booths and tables to promote their services and encourage students to sign up.
How it affects you and your future Knowing and respecting your paying capacity is key to using and managing your student credit card. Used wisely, it can help you develop good money sense and teach you a lot about responsibility. It can be very tempting to have but just because it's available doesn't mean it's right for you. Just remember to use self-discipline each time you flash your student card. Your credit rating, employment, financial reliability ? a good part of your future, incredible as it seems ? rests on that piece of plastic.
If you're applying for a student credit card, chances are it's going to be your very first credit card you apply for. Like anything we do in life, when it comes to doing something for the first time, it's going to be completely foreign to you. To help make the situation better, I will try to explain how a student credit card works and how you can find the best one that can suit your needs.
A student credit card is no different than a regular card. The only difference you'll find that these cards are designed for college students. You'll also find that these cards are generally issued with a lower credit limit and a higher APR (annual percentage rate). As you build your credit over time, these rates and limits can improve. In the meantime, you'll have to live with the higher rates.
As I mentioned above, you'll realize that you're not going to get the greatest benefits but keep in mind that these cards do generally offer rewards. These rewards can vary from getting gas rewards to shopping rewards, so just because you sign up for your first credit card, it doesn't mean you're going be shorthanded and not get anything at all.
What to look for when applying
When applying you're going to have to keep a few terms in mind and it will help if you write these three key words in. These terms are rewards, APR, and annual fee. I'll explain what each one will mean to you and how you can find the best rate.
Out of the three I listed above, rewards will probably be the least of your concerns but it should be something you keep in the back of your head. You'll be surprised on how many people use a credit card just for the rewards. Remember if you pay your credit card off in full each month, you can really reap the rewards of the credit card. In order to find what reward will work best for you, simply look around at what's being offered and see what will best suit your needs.
When it comes down to applying, the APR otherwise known as annual percentage rate is probably the most important term when it comes to your credit card. This is the rate that will be charged to your unpaid balance monthly. Remember, if you pay your bill off on time in full, you won't have to worry about this rate. But, if you think you're not going to be able to pay this bill, make sure you find the lowest rate possible.
Our last term mentioned is the annual fee. With student credit cards, you're probably not going to find many cards with an annual fee but this is something you'll have to look out for when you apply for a card. Try and avoid a card that has an annual fee. There are so many cards on the market that don't have you pay an annual fee.
When you're looking for your first credit card, be sure to compare the cards and keep the terms I mentioned above in your game plan. If you can do this, you'll be on the right path to a perfect credit card.
Both Mario Churchill - & Tom Tessin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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