Are you a parent or a guardian of a student going to college? Have you considered getting a college credit card for your child? This article tackles valuable tips on how you can help your student choose the right credit card and avoid falling into the debt trap.
Choosing the Right College Student Credit Card
Look for a student credit card with low interest. A credit card with a low APR can save your student from the risk of debt accumulation. In case, he or she needs to carry over a balance, having a low rate card will certainly be a big help.
Avoid student credit cards with annual fees. With the many choices of credit card for students in the market, you have the right to choose the best offer. Go for a college credit card with no annual fees and save tremendously on your monthly charges.
Check credit card review websites. Don’t know where to start in choosing? Visit credit card review websites and get to know which cards have the best potential. Narrow down your choices more conveniently without the need to hop over each and every credit card company on the web.
Read the fine print. Reviews online will only give you the best and worst features of the card. When you’re down to just two or three choices of student credit cards, it’s time to take a closer look. Read the Terms & Conditions page to be sure that you’re getting the best deal.
Avoid submitting multiple credit card applications at once. Don’t try to see your chances of approval by submitting multiple applications to different issuers. Some credit cards may offer freebies just to get you to sign up. But submitting multiple applications without carefully considering your options can only get you into trouble.
Using a Credit Card for Students Responsibly
Never max out your credit limit. Using your credit card’s limit to the fullest could risk your credit rating. It can also put you in a bad credit situation. TO avoid problems, it’s best to stay within below 40% of your allotted credit line.
Don’t use your student credit card for luxuries. Avoid using your first credit card for expenses that are not at all related to your studies. Better yet, don’t use your card for any unplanned purchase.
Monitor your credit card account. Keep track of your spending habits by checking your monthly billing statements. Thus, in case of incorrect charges, you can dispute them immediately.
Never use your student credit card for cash advances. Never take out cash from your college credit card. If you do, you instantly get charged with high APR plus transaction fees. If you’re badly in need of cash, better just ask your parents.
Don’t be content with just the minimum. As much as possible, never carry your balance over to the next month. Pay off your charges in full as soon as you can.
Always pay your bills on time. If you own a credit card, make it a habit to submit your payments on time.
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