Many young people excitedly enter college, full of dreams and ambitions. However, some of them get stuck in bad credit as a result of poor management or overspending. Having a credit card can be convenient but if a cardholder is not careful, the result can be devastating.
So if you plan to apply for a student credit card, see to it that you are aware of the responsibilities involved in managing credit. Certainly, owning a credit card isn’t just about spending. Get informed. Don’t be afraid to ask advice from people who have built themselves good credit.
In your search, you’ll come across different credit card offers from varying issuers. The fact is, many issuers focus their marketing strategies on students. Credit card companies dote on students since they are most likely to stick with their first credit card even after college graduation.
When comparing offers, it’s very important to know what you’re looking for. The advertisements can be misleading. For example, some issuers offer zero introductory rate which can be very enticing for someone in need of a credit card. However, just because you can enjoy 0% APR for a few months does not guarantee a great deal. Before signing up, check the rest of the fees associated with the credit card. You’ll want to make sure that you will not be subjected to unreasonable penalty charges or hidden fees later on.
What about student credit cards with rewards? You can find a wide variety of rewards credit cards for students in the market. The question is, which one should you choose? Before you make a decision, seriously consider your lifestyle and spending needs.
Will you be using your student credit card on a regular basis, perhaps using it to purchase your personal supplies each month? Or do you plan to reserve your student credit card for an emergency? If you don’t intend to use your credit card that often, perhaps a regular card with a low rate is a better choice. It will be very difficult to earn rewards unless you use your credit card for purchases.
Another thing to consider is your repayment strategy. If you can pay your monthly balance in full consistently, then you may consider getting a student rewards credit card. ON the other hand, if you see yourself carrying a balance in your account from time to time, a safer choice would be a non-rewards card with a reasonable interest rate. The reason is because reward credit cards are known to carry much higher rates and fees than their non-reward counterparts.
Does the issuer of the student credit card report to the three major credit bureaus? Keep in mind that one of the most important benefits you can get from using a student rewards card is to build your personal credit history. Nevertheless, you won’t be able to build credit history if your payments won’t be reported. Take note that not all credit cards for students advertised in the market offer credit reporting to the major credit bureaus.