As a student you are probably best face-to-face with a lot of credit card offers especially if you’re going to college. Credit card companies love College students since not only do they gain a customer earlier on much can also rely on the parents of the student paying off any credit card debt that’s the student gets under. Choosing your first credit card as a student is an important enterprise. You should choose a credit card carefully and not go in for the first offer that comes across you. It is an exciting time and moment to pick out your first credit card but you must keep the following points in mind to make sure that you make the right choice.
Having a limited credit history. Typically a person who had a limited credit history finds it difficult to be approved for a credit card. This might or might not hold true in your case if you’re a College student. However make sure that the lender you are dealing with is not find to compensate for the fact that you have a limited credit history by offering your credit card that has a high interest rate. Deal with the credit card provider that these commonly and often with students and people of limited credit history.
A few things to keep in mind when choosing a student credit card
What Is the Credit Limit on Your Student Credit Card
ideally as a student you want to choose a credit card with a low credit limit. What you want to do initially is to learn proper credit card management rather than be tempted to make a huge balance on your credit card that will put you under a burden of debt even before you have finished your education.
What Is the Interest Rate Being Offered on the Student Credit Card
if you intend to use your credit card from making purchases for school or college staff such as books and equipment then it is likely that you may want to rotate your balance from one month another and pay off the expense gradually. Ideally as a student he would a credit card that offers a very reasonable and low rate of interest that allows you to use your credit card for your maximum benefit.
What Are the Extra Fees and Charges Associated with the Student Credit Card
As a student you ideally want a credit card that has the minimum amount of extra fees and charges such as animal feed, processing fee and even an account maintenance fee. While all credit cards can have a normal feel like late payment fee and over the credit limit fee avoid a credit card that has strange and uncommon charges. usually a credit card company will revert the animal charges and Even the interest for the 1st 6 months or even a full year. However, be aware of what interest rate and no charges will be levied on your credit card after the promotional is over. It is not uncommon for student credit cards to have annual charges ranging from $0 and $50. Also the interest rate on student credit cards tends to be higher than conventional in credit cards. If you happen to revolve the balance on your credit card, something which is not advisable, the interest rate on your credit card could make a huge difference in the total amount that you have to pay back on your credit card bill.
Get a Student Credit Card Without a Cosigner
It may be tempting to get a credit card more easily simply by having a parent or Guardian cosigning due on the credit card application. However, try and take on a credit card as a single account holder as that will help teach you need more responsible birds credit payment and management.The new credit card rules and regulations under the credit CARD act 2009 dictate that if you are below the age of 21, you either need to have a cosigner on your credit card application or if you need to prove a source of income.
Choosing a Student Credit Card with Rewards and Points
It is good to find a student credit card that has rewards on it. Having a credit card offer rewards back to the student will using it is an added benefit. However that should not be the first criteria future is your credit card. If you are getting a good deal with a credit card on the interest rate and the credit limit then he should go for it. Rewards can also tempt a student to make unnecessary purchases from purpose of running the rewards. This practice can make you spend more than you can afford to which might not be worth the rewards that you earn in the end. For example, Capital One Venture Rewards credit card offers reward you with flying miles for every purchase you make. Moreover, these reward flying miles do not expire and can be used on any airline without any blackout dates.