Things to Consider When Applying for Your First Credit Card

Students have the privilege to get approved for an unsecured credit card despite not having credit history. For this reason, financial advisors recommend applying for your credit card while you are a student. Today, let’s discuss some tips on how to you can find the right credit cards for students:

Credit Card Features – Rates, Fees and Conditions
Check the terms and conditions before submitting your application. Understand how the interest rate is calculated. Keep in mind that credit cards with variable rates are subject to increase depending on the Prime Rate. How much is the penalty fee, the annual fee, balance transfer fees and other finance charges?

Once you submit your credit card application and gets approved, you are subject to abide by the Terms and Conditions of your chosen credit card company. Hence, it is very important to pay attention to the rules before taking action.

On Being A Student Credit Cardholder

While conducting your search, you may find that some credit cards for students offer introductory interest rates and exciting rewards. Young people can easily get attracted to credit card deals especially since it is their first time to apply.

However, before grabbing the offer, check the rates, fees and conditions when the introductory period ends. If you want to get a student credit card with rewards, make sure that you will be able to post your payments on time to avoid high interest rates or expensive penalty charges.

Are You Ready to Use Your First Credit Card?

Owning a credit card is a big responsibility. Yes, you have the responsibility to your credit card issuer to pay your debts in a timely manner. More importantly, a student credit card can be your tool in establishing your personal credit history so that by the time you graduate from college, you have already built a solid credit foundation for yourself.

When used correctly, credit cards for students can bring many benefits. However, when used carelessly, it can lead a person to uncontrolled debt and bad credit. Use your first credit card to prove that you are smart enough to manage your own finances without getting yourself in trouble. Be exercising self-discipline and motivation, you can surely enjoy the advantages of having a credit card.

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 2010

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