With so many different student credit cards in the market, how can you pick the right one for you? Here are some factors that you should check on:
Factors to Consider when Choosing a Credit Card for Students
The APR. A lot of credit cards for student comes with a 0% APR introductory offer. Before you sign up, make sure that you understand where the zero interest is applied. The 0% APR may only be applicable to purchases or balance transfers while other cards may give the zero interest on both.
Furthermore, make sure that you are clear about how long the introductory promo lasts. Some credit cards offer only 3-6 months while others may offer a much longer introductory period.
Other Charges. Aside from the APR, don’t forget to check all the other costs on your credit card for students (late fees, over-the-limit fee, annual fees, etc.). Remember, a low interest rate doesn’t necessarily mean that you’ve found the best student credit card in the market. Make sure that there are no “hidden charges”.
The grace period. A sufficient grace period ranges from 25-30 days depending on your issuer. Remember to submit your payment before your grace period ends to avoid additional charges.
The perks and rewards. After considering the interest rate and the rest of your credit card fees, consider the rewards that best matches your lifestyle and needs as a student. However, bear in mind that a student credit card with rewards will only be beneficial if you will pay off your balances in full each month. Otherwise, you could be subjected to a higher interest rate.
The terms and conditions. Everything you need to know about your chosen student credit card is in the Agreement. Take the time to examine the complete Terms and Conditions before signing.
The convenience. Can you use your student credit card on various establishments and merchants? Does the card report payments to the major credit reporting agencies? This is very important because a student credit card should help you build your personal credit history.
Online access to your account. Being able to access your account online will help you monitor your balances and keep track of your credit card spending conveniently.
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