Not that you’ve decided to get a student credit card, the first important step is to find the right one. As you graduate from high school, you may have received a lot of offers from different credit card companies. Perhaps you may have a few cards in mind that you’re considering but before you go and submit your application, here are some points to ponder:
Student Credit Cards Can Be Good Or Bad
Having a student credit card can work to your advantage or disadvantage – depending on how you manage it. Sure, applying for a college card is easy despite your lack of personal credit history. In fact, these cards are your stepping stones toward rebuilding your personal credit. However, let’s not forget the risks associated with having a credit card.
Have you checked the interest rates and fees of the card? Are you aware of exactly how much it will cost you to maintain your college credit card? Indeed, getting an approval is quick and easy. But it’s in the choosing that you’ll want to spend more time with.
Surprisingly, there are credit cards for students that offer a very low APR to attract customers. But to which of your charges is the low interest rate applicable? Take note that there are credit cards with more than one APR. The low rate may either apply to either your balance transfer charges or purchases only. It is also important to make sure that the initial low APR isn’t subject to change any time after you signed up your contract.
Thus, the best way to compare credit cards is to examine the Terms and Conditions. Here, you should be able to learn about the exact fees and terms of the card right from the beginning. Failing to review the agreement may lead you to get the wrong student credit card.
Watch out that student credit card!
Enjoying the benefits from a student credit card greatly relies on your personal management. Use your card only for important purchases. Make sure that you can pay off your balances in full before your scheduled due date. This way, you can avoid the additional interest rate costs and keep your credit history in good standing.
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