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Building credit is not the easiest thing in the world. It is best to start
when you are a student so that by the time you graduate you’ll have a
substantial credit history. The best way to build credit if you are a student is to apply for
a student credit card. Student credit cards are ideal to teach students how to manage credit responsibly.
Here are some things you need to know about student credit cards:
1. If you are a student you can apply for a student card in your college, a bookstore or you can also apply for one over the Internet. They are relatively simple to apply for since first-timers
have no credit rating.
2. Student credit cards can be used in the same way as other credit cards but they have a few restrictions. Since students do not have a credit history the parents may have to co-guarantee the card.
3. Many issuers offer student cards that have online account management
facilities. These cards are practical since students can conduct banking transactions online.
4. Student cards usually come with bonuses like discounts and cash back guarantees on purchases of books, food and other consumer items.
5. Certain cards are available that have a 0% APR (annual percentage rate) for the first year. Students should look for cards that have no APR or a negligible APR.
6. Students tend to be careless and misplace things easily. Hence, look for a credit card with security benefits like a “lost card” policy. This will protect the student in case his card is lost or stolen.
7. Even if the APR is little or nothing in the first year, later on these cards generally carry higher interest rates as compared with other credit cards. If bills are not paid promptly the expense in terms of interest could spiral alarmingly.
8. Since students have no credit rating, the credit limit fixed for these cards is quite low.
9. Secured credit cards are a viable option for college students. A deposit in the form of a savings account or a deposit certificate is kept as security against which a credit card is issued. If the student defaults in payments, the deposit will be used to pay off dues.
10. Student cards if used sensibly are good alternatives to build credit rating. In later years good credit rating helps you avail of larger credit facilities.
While student cards have many advantages, the downside is that students tend to binge on insignificant things and often go on spending sprees. If their spending habits are not kept in check, they could wind up with a bad credit situation even before they graduate.
Student Credit Cards
REVIEW OF AMERICAN EXPRESS GIFT CARDS AT CREDITAGOGO.