Student credit cards are effective tools in paving the way for a bright financial future. A lot of consumers can attest to this statement. After all, by applying for and managing their very first credit card responsibly, many cardholders are able to build good credit reputation that enabled them to rent apartments, land excellent job opportunities, and even buy their own cars.
Unfortunately, when used irresponsibly, student credit cards can also pave the way for a financial disaster. There are a lot of reports and experiences of college students, who were not able to control their spending habits, who eventually fell into debt traps. Not only did they accumulate burdensome debts. They also inflicted long-term damage to their credit history.
This is the reason why students need to be very careful in choosing and in applying for their very first credit cards. This way they can ensure that whatever cards they intend to get will really suit their needs and will work to their advantage.
Now, what should college students consider when they shop for a good credit card program? We will find the answer to this query on the next portion of this article.
Top Considerations Before Getting Student Credit Cards
1. The interest rate. Before getting a credit card for students, you need to consider the rate that will be charged on your card. Ask yourself the following questions: Can I afford to pay the interest that will be charged on my credit card in case I cannot completely pay off my credit balance? Is the rate within the acceptable range of interest rates offered in the market? Is the rate of interest fixed or is it only part of a short-term teaser program? The answers for these queries will help you decide whether or not you would get the credit card program being offered to you.
2. The fees and charges. Be mindful of the fees and charges imposed on your credit card for students. Remember that you will need to pay these costs before and even while you are using your first credit card. So resolve to settle only for the card that asks for very few fees and charges. This way you won’t need to spend a great deal of your money just so you can get the card you desire to use.
3. Features offered in the student credit card. It is also advised that you look at the other features of your card. Inquire whether the card has a cash advance facility which you can use especially during emergency situations. Also, try asking whether you can earn rewards when you regularly use your card in making necessary purchases and in paying your monthly bills. You may also ask for insurance programs that may be offered to you as a cardholder. This way you can maximize the benefits you can get from your student credit card.
4. License/ Accreditation of the card issuer. One of the most important things you need to consider before finally applying for a credit card for students is the legitimacy of the card company. You need to perform a thorough investigation of the license to operate or federal accreditation that the card issuer holds on to as proof that the business is legitimate. You may also need to perform additional researches regarding the track record of the company in terms of having fully-satisfied clients. This way, you can have the guarantee of dealing only with credible card companies and getting only the best card programs.
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