Similarities and Differences of Student Credit Cards

Credit cards for students abound in the market. If you are in search for one, what are the similarities and the differences that you need to know about them? How can you compare effectively and make the right choice? Here are some tips:

Interest Rates. Of course, everybody wants to get a low rate credit card. Some student credit cards may offer an impressive introductory rate but the more important question is, “how much will the regular interest rate be after the introductory period?” Think about the long term consequences of your decision. You don’t want to grab the initial low APR just to get stuck with a high rate card in the long run.

Terms and Conditions. Different issuers of student credit cards each have their own Terms and Conditions. If you won’t spend time reading the fine print, there is no way you can be sure that you made a good choice. No matter how tempting the deal is, you want to sit down, read the contract, understand its stipulations and ponder over them before signing up for the card.

Rewards. Credit cards for student can also have a variety of reward programs such as Frequent Flier Miles, Gas Rewards and Cash Back Rewards Programs. Choosing a college credit card with rewards will depend on your lifestyle.

If you drive your own car and if you think you will spend a lot on your transportation budget, you may consider getting a gas rewards card. Calculate your estimated monthly costs on gasoline purchases and comparing with the savings you can enjoy if you use a college credit card with gas rewards.

Do you go to boarding school located in a State outside your hometown? Do you need to travel by plane to spend vacation with your family? If yes, then perhaps a Frequent Flyer Miles student credit card is the right one for you.

Meanwhile, cash back reward student credit cards offer flexible ways to earn rewards. Typically, you get 1 cash back point for every dollar you spend on general purchases. Cash back cards are also great for young people because it can be more fun and exciting. You can get discounts from selected shops and exchange your points for cash, gift certificates or as free merchandise.

However, you should not take for granted your privilege to earn rewards. Don’t charge purchases on your credit card just for the sake of earning points. Use your card only for sensible buys and pay off you charges in full to avoid the interest.

About the Author

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

Copyright 2009

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