subject: Credit Card Information for Students [print this page] Credit Card Information for Students Credit Card Information for Students
You can't have it all. As a kid, you get taken care of, but your freedom is limited. When you leave home as a student, you get to say exactly what you'll do and when. Yes, you get to decide to do the laundry. And you get to decide when to do it..
There is more than just cooking and cleaning.The student must also take full responsibility for his finances. As a student, you need to learn about responsible financial habits and how they affect your credit score. Your budget needs attention from you.. How easy it will be to borrow money is what's at stake - and that can make the difference between an easy path and frustration down the road.
One of the easiest ways you can get started down the a smart financial path is to a student credit card.
What to look for in a student credit card
Students don't generally have any financial credibility. They are fresh out of the package. This can make it quite difficult to get a credit card of any kind - even harder to land one with an attractive interest rate or rewards program. ( U.S. students under 21, who can't prove they have steady income, will need a co-signer.) Even with these challenges, all is not lost. You can still find the best college student credit card. There are some credit cards that offer you, the student, valuable rewards programs and low overall fees.
When looking for a student credit card, you will find they charge you a slightly higher interest rate. Luckily, many student-focused credit cards come without an annual fee and with a rewards program that a student can appreciate. When looking at a rewards program, make sure that you consider flexible rewards cards with a variety of options that you are likely to use. Points can usually be redeemed for entertainment and sometimes even for cash.
Make sure you consider the promotional APR. You will want a low intro rate, and one that lasts at least six months. You should also be careful of picking a student credit card based on the special gift alone. You can enjoy the gift if you like (Why not?), but if you seek long term benefits, pay attention to the actual rewards program before you fill in the application for whatever credit card you select.
Wise Use of Your New Card
When you get your new student credit card, you want to use it to build a positive credit score, not to create a blight upon your record. Yes, that's what responsible use is all about. There are some basic rules that you should follow if you have a desire to avoid the debt trap that so many students wind up setting for themselves. Money doesn't grow on trees - not even with a credit card.Buy only those items you already have money for. Building a good financial record means that you pay off your credit card each month. Don't wait. This will help you avoid interest charges - and save you money, so you'll actually be able to afford to buy more in the long run. Your new credit card can help you build a good credit score quickly - but only if you are careful. Save up money in advance for large purchases, and charge only what you already have saved the money for. Doing this means that you will be able to pay your credit card balance each month in full and avoid painful interest charges that drain your budget.
A student credit card provides you with opportunities to prepare your future the right way while enjoying benefits right away. The reality, though, is that if you use it as if you had only a week left to spend your inheritance, you will most likely find yourself swimming with the sharks of debt. Don't let the the heady feeling that comes with using your credit card go to your head. Make sure that you keep behaving in a financially sound manner. Getting approved for a student rewards credit card should not be a mistaken excuse to ignore sound financial habits.
