Whether 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