Your Student Credit Card Options

Are you a student who’s about to enter college? If yes, you may be planning to get your own student credit card. Yes, many college students prefer to open a credit card account not just to have a credit card to use but to establish their personal credit history as well. Having a student credit card is a smart move if you can make the right choice. Below are the most important factors that you should consider before choosing a student credit card.

Interest Rates and Fees

The APR is the additional cost that a cardholder pays each time he/she carries a balance for the next month. Needless to say, you’ll be better off with a low interest rate credit card. As a cardholder, do your best to pay off your monthly balances in full to avoid the APR.

However, there may be instances when you can’t pay off your whole credit card balance. This is why, a student credit card with a low APR is a smart choice. But take note that the interest rate isn’t the only thing you should be concerned about. Aside from a reasonable interest rate, you should make sure that the rest of the fees are just as reasonable.

Looking at the ads will not tell you everything you need to know about a credit card. To learn about the real interest rate, how the APR is calculated, and the other fees associated with your student credit card, you should read each and every statement in the contract.

Grace Period

The grace period is the length of time that the cardholder is allowed to pay back the charges without incurring the additional interest rate cost or APR. Most credit cards for students allow a 25-day to 30-day grace period.

It is crucial to get a student credit card with a sufficient grace period to protect yourself from the risk of bad credit. Bear in mind that not all credit cards for students provide ample grace period so it is up to you to find a credit card that does.

Low Credit Limit

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A student credit card usually has a low credit limit, to the dismay of many young people. But in fact, having a low credit limit is a good way to start learning about correct credit card use. Although a credit card with a higher credit limit gives you more freedom to spend more, it also puts you at a greater risk of falling in the debt trap.

First time cardholders like students are recommended to get a credit with a lower credit line. Use your credit limit wisely and charge only important expenses to your student credit card. More importantly, see to it that you will able to pay back your charges on time to avoid bad credit.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit cards articles that would help build student credit.
Copyright 2009