Are you planning to apply for your own student credit card before the year ends? If you do not own a credit card yet, acquiring your first card can be exciting. However, avoid making the wrong credit card choice just because you’re in a hurry to get one. Consider the following pointers before signing up that student credit card application.
Look for a student credit card that fits your lifestyle. Credit cards for students can be arranged in various categories.
For instance, some student credit card offer 0% introductory balance transfer rate while others offer different reward programs. Evaluate your personal spending and lifestyle and look for a card with features and services that match your needs.
If you want a credit card with rewards, see to it that you clearly understand the rules of the program. Choose a program that is suited to your spending habits. Take note that reward cards usually carry higher APR than non-reward cards you should be more alert about paying off your balances. The best way to benefit from a reward student credit card is to avoid the interest rate by paying off your full balance each month.
Understand the pros and cons. Are you ready to own a credit card? If this will be your first time to handle a credit card, do your research first so you’ll know what to expect. Ask your parents or someone who have experience managing a revolving credit. Remember that owning a credit card offers convenience but you need to be aware of the responsibilities involved. Seek advice on how you can use your student credit card to your advantage and how to avoid the risks as well.
Choose a student credit card that reports to the bureaus. The most important benefit you can gain from using a credit card while in college is building an early credit history. Thus, by the time you graduate, you would have already built a solid credit history and score. However, you should choose a credit card that will regularly report your payments to the three major credit bureaus (Experian, Equifax, TransUnion).
Use your student credit card regularly. You will not be able to build a credit score if you will only keep your card in your wallet. Does this mean you can be careless with your spending? Not at all! You can use your credit card to pay for small purchases at least once a month. This way, paying off your monthly balance will be easier. More importantly, you can pay off your full balance and avoid interest rate and late fees.
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