What All Students Must Know About Student Credit Cards

Student Credit Cards

Credit Card 150x150 What All Students Must Know About Student Credit CardsAny student who is planning to enter college for the first time ought to begin working on building their credit, and one way they can do so is by getting a student credit card. This is the ideal type of credit card, since it will not only help the student build credit, but will also give them a certain sense of security, especially when faced with emergencies that require prompt cash. But even as such, there are things that all students must consider, or rather, there are steps such students can follow, so as to ensure that they get the best college student credit cards.

What Are The Credit Card Fees

To begin with, one should always check before applying for any college students credit card and know what the fee involved is. It goes without saying, that for example a credit card for college students that requires them to be paying a monthly payment would be ideal for them. Rather, one can take time and shop for a college student credit card that rewards them in form of either cash back, or rebates. This enables the student to benefit fully from the credit card.

Choose a Student Credit Card Wisely

Secondly, a student looking for a college credit card should opt for one that has a major logo, for example Visa card, or Master card. As such, they have higher chances of being accepted in most places, besides being reported back to the agencies dealing in credit cards. It is worth noting for the college students that with a well respected credit card, they can be sure this is the right direction in building their credit.

Good credit is helpful in case one finds themselves caught up in credit debt, or when looking for the right credit card debt relief. Most lending institutions will not want to deal with anyone with a bad credit history, and even when applying for a loan, those with poor credit scores have a hard time convincing the lenders.

Selecting Student Credit Cards

student credit cards 150x150 Selecting Student Credit CardsWhether you yourself are a student, or you’re a parent shopping for credit services for your child there are a few important things to consider. Very often, you may not be aware of the benefits students get, or some of the special offers credit card companies keep under the radar for those who qualify. We’ll touch on that in a moment.

First thing first. You should know up front that generally student credit cards have a higher APR as a result of low or no credit history. Credit card companies have their guard up when students do not have decent credit history, as they may overspend, have no job while during school months, and ultimately not be able to pay their monthly minimums.

However, one thing they do not do, is exclude students from rewards and special offers. A 12 month no interest card may get you out of a clinch, but if you use your imagination, their are always ways to float balances for 11 months and then transfer to a student loan with a lower interest rate. Of course, always be on the lookout for exclusion policies when planning something like the above, but that can be a great way to boost a credit score when credit history is minimal, all the while not getting buried with outrageous interest rates.

If you’re having difficulty getting a credit card a student, you might also consider a secured card. Sure, it’ll cost you up front, but when you’re out of options, you’re out of options.

Here’s what to look out for:

  • Associated fees
  • Low limit vs secure deposit amount
  • Transfer fees, in case you start building credit and receive a better offer from another cc company
  • Retroactive APR increases for non payment