The Best Credit Card for Students
It happens younger and younger. A newborn receives a credit card application before he gets his social security number. Likewise with a college student – before you have earned a single credit, you are bombarded with credit card offers. It is scary, but it can be a valuable asset when you are away from home for the first time.
The best credit card for students will be everywhere. Every possible bank and credit card company will come to campus and tell you that their card is the best. They’ll give you t-shirts, magazine subscriptions, and restaurant coupons for signing up. They might even feed you pizza to get you to stand at their table long enough to heat their spiel. And after all, you really have been meaning to redecorate your dorm room to make it homier. So, why not?
Well, for one thing, signing up for every card just to get a thermos or a concert ticket will hurt. Every application that is turned in requires a credit check. Too many inquiries into your credit is as bad as getting too many credit cards. Which leads to the second thing – what if you are approved for every card you sign up for? Too much credit too quickly can lead to bad debt. And college students are too young to start that early with debt problems.
The true reason to get a credit card is for emergencies (like your parents talk about) and necessities, such as textbooks. While the freebies are nice, it’s better to make sure the card has a low annual percentage rate (APR) and no annual fee. These things can cost you more than that concert ticket is worth.
It’s okay to pick up the applications to review and compare. Or better yet, shop online and see what deals are available. Typical APRs range from 12-18%, but the lower the better. If the card specifies a low “introductory rate”, then be sure to read what the rate goes to after the introductory period.
There are affinity cards, which can be for your university or college, political party, or environmental or social causes. This means the benefit of using the card goes to these organizations.
However, you can also benefit from the use of a card via reward points that can accumulate for travel or gifts. The more you use the card, the more points you earn. Some cards offer bonus points for certain purchases such as gas, prescriptions or groceries. The key is making sure that you can either pay the balance in full each month or make the minimum monthly payments. Failure to comply with the terms and conditions could result in the loss of your reward points.
It’s okay to eat the pizza and listen to the on-campus spiels. Just don’t let them suck you in and make you sign the dotted line. Most of these sales people get bonuses for the number of applications they get and don’t have your best financial interests in mind.
Quick Tip #1
Although it may be overstated, there is a lot of truth to people ruining their credit score due to missing payments and
paying their credit card bills late.The fees can pile up and the interest rates can grow before you know it.
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Quick Tip #2
Never let your cards go out of your sight and always check your receipts and your card statements thoroughly.
These are simple ways to prevent credit card fraud happening to you. If you do see a suspicious credit card statement,
then call your credit card company straight away and cancel your cards. |
Quick Tip #3
Today’s cards offer a wide range of excellent features, including frequent flier points, programs that bank points toward a new car
and cards that support charitable organizations. Other options worth having include car rental insurance coverage, trip cancellation coverage
and extended warranty coverage. |
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