If you’re a student preparing to apply for a credit card, this article was made for you. Consider these common mistakes that many students commit when choosing a student credit card.
Common Mistakes when Choosing a credit card for students
Applying for the wrong credit card. There are many choices of credit cards for students in the market and you’ll want to pick out the one that meets your needs. For instance, consider how you plan to manage your credit card balances. Will you be able to pay off your balances IN FULL every month? If yes, you may consider choosing a student credit card with rewards so you can enjoy certain privileges. However, if you intend to carry a balance from month to month, you should choose a student credit card with the lowest APR to save more.
Getting a credit card with exclusive affiliations. Some student credit cards with rewards offer huge bonuses and discounts but only for purchases made from selected shops and establishments. There’s nothing wrong with having affiliations but if your credit card is limited only to those shops, you’ll want to make sure that you REALLY make your purchases from those shops on a regular basis. Otherwise, it would be very difficult for you to get rewarded at all.
Putting up with high annual fees and charges. There are student credit cards – especially those with reward programs that charge high annual fees and unfair charges. If you won’t review the Terms and Conditions, you may be surprised to discover these fees late on after you’ve already signed up. Remember, only the card’s best features are advertised.
Choosing a student credit card because of the introductory offer. Many credit cards offer low introductory rates to attract more clients. But be careful of choosing a credit card based on the introductory offer alone. Make sure that are clear about the terms of the offer and that the low APR would remain reasonable even beyond the introductory period.
Not doing comparisons. A student may be excited to get a credit card for the first time. Too often, many students have signed up for the first “good” deal sent to them by a credit card issuer. But no matter how tempting the offer is, never make decisions in a hurry. A truly “great” deal will not be lost that easily. Before submitting your application, take the time to shop around first and compare different student credit cards in the market.
Submitting applications to different credit card companies. You should know that most credit cards grant instant approval especially with credit cards for students. Submitting too many applications to various issuers at the same time is a risky move. You could end up with having too many credit cards than you need which can make it very difficult for you to handle.
Not reading the fine print. Unfortunately, not everyone takes the time and effort to read those small prints of the contract. But if you really want to know the REAL DEAL about a credit card, you should spend time to read and understand the Terms and Conditions of the card.
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