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Credit card companies are always eager to encourage students to use credit cards. There is no harm in allowing students to use credit cards, if used properly. This article covers the following topics regarding student credit cards
What are the points to be considered before going in for student credit cards?
What has to be done to find out best student credit cards?
What are the tips for using student credit cards effectively?
Student credit cards are especially designed for use by college and university students. Credit card companies hope to encourage college and university students to set up credit card accounts and so they create special credit cards for students in order to encourage this new group of customers. Also, since students tend to be younger customers, they tend to have very short credit histories. This means that they often do not qualify for traditional credit. Credit cards for students help to bridge this gap and through their simpler applications allow students to enjoy credit cards.
How To Find The Best Student Credit Cards
Most students can easily find credit card offers. This is because credit card companies actively advertise on campuses. However, to get the best cards, students should not necessarily just sign up with the first offer made. Instead, they may wish to speak to several banks and financial institutions about the credit cards offered to students. They may also wish to consider becoming an authorized user on their parents’ credit cards. If parents have good credit ratings, students can enjoy very low rates while building up their credit rating. However, students should be aware that often the best rates and limits are those which appear on the special offers which are mailed to them.
The Best Ways To Apply For Student Credit Cards
If you are a student, you should compare several credit card offers and find a credit card that offers you:
- Low limits
Since students often live on very limited budgets, high limits are not realistic. They can tempt students into overspending and they can also make debt too large to repay.
- Low Rates
Many student cards offer introductory rates of 0%. After an initial period of 6 months or so, students need to start paying regular credit card interest rates, which can be quite high. It is important to check the fine print to make sure you understand what you will be paying after the introductory period.
- Reward programs
Many student cards offer reward programs that allow students to accumulate points that can be exchanged for movie passes and other bonuses. To make your card as budget-friendly as possible, find the card that offers you as many rewards as possible.
- Online accounts
Most students do their banking online. By selecting a card that lets you manage your account online, you increase the chances that your card will be paid on time.
- Good security policies
Since students are only getting used to using credit cards, a card with a comprehensive security policy that keeps students safe is essential. Before signing for any card, make sure that you understand what happens in case you are the victim of fraud or the victim of theft.
- No fees
Many credit cards offered to students are fee free student credit cards. This makes sense, since so many students are on limited budgets.