The Smart Habits of Handling Student Credit Cards

If you’re a college student, having your own credit card can be a great convenience and assistance for your studies. This article talks about tips on how students can use their credit cards in a smart way and how they can avoid the bad credit debt trap.

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Choosing a Student Credit Card

It is crucial to obtain the credit card that works for you. Obviously, not all available credit cards for students in the market will work for everyone. Before making a choice, a students must do research in comparing different credit card deals. Always remember that a low rate alone does not guarantee a good deal. It’s important to check the rest of the fees associated with the credit card.

How long will the low interest rate last? Don’t fall for what the ads tell you. You need to check from the contract whether the interest rate will last for a long time. An introductory rate is only applicable for a limited time period. Once the introductory rate expires, you may be stuck with high interest rate student credit card.

Be careful about signing for student credit cards with rewards. Just because a card offers an attractive reward program doesn’t automatically make it a good choice. First, you need to consider whether you can manage a student credit card with rewards. Bear in mind that reward credit cards have higher APR than non-reward cards so if you intend to carry a balance in your account, you could end up paying more on the interest rate costs.

To get the most from a reward credit card, you need to find the one that suits your lifestyle. A frequent flyer student rewards card may not be the best choice for everyone especially for students who don’t travel a lot. If you don’t own a car, a gas reward student credit card is obviously not for you. Meanwhile, student credit cards with cash back rewards offers flexibility so it can be a good option for many young people.

Keeping Up with Your Payment Obligations

Making the right credit card choice is only the first step. Just like all credit card holders, students must stay true to their payment obligations. Avoid the habit of submitting late payments or submitting only the minimum due payment. As a credit card owner, it is up to you to use it to your advantage.

Staying away from bad debt is not an impossible feat. It’s all about being aware of your duties and acknowledging your limits. To avoid bad debt, it’s best to leave at least 50% of your credit limit unused or free from charges.

Make it a habit to check your credit card account regularly to monitor your expenses as well as to make sure that there are no unauthorized purchases in your account. By doing these important steps, you can be sure that student credit cards will be your tools to building good credit.

About the Author

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