When you go to college, student credit cards will likely be one of the first things you see. This very "adult" financial tool can be a big help when you need to pay for goods or services right away but don't have enough cash. As an alternative to cash, it is a safe and easy way to pay for things.
How to get the best deal on a credit card as a student
It's easier than you think to get a student credit card, but if you're not careful, you could end up with a bad deal. Talk to at least three or four different companies to find out which credit card is best for you. They all have different rates, so to get the most out of your application, you need to know what's out there.
Look for extras and perks that cost the same. Remember that nothing is free when looking for a student credit card. Anything that comes with your credit card and pretends to be a free gift is not a gift. You're paying for it without even realising it.
To get the most out of your "freebies" and "perks," look for a student credit card that gives you discounts, warranties, frequent flier miles, free gas, and other benefits. You might only get them when you use your card, but once you have enough of them, they can come in handy.
Choose a card with low annual fees if you are a student. If you can, get a credit card with no annual fee, as long as there aren't any hidden fees. If the credit card company agrees to waive it, you can save a lot of money. Watch out for the time when your credit card company will charge you the annual fee. Make sure you know how much it will cost and if you can afford it.
Pros of getting a credit card as a student
Student credit cards give you the ability to spend money and buy things, even if you don't have any cash on hand.
Build your credit history. A student credit card is probably your first step in building your credit history, and how you use it will have a big impact on your future credit rating.
Build your confidence and sense of independence. A student credit card lets you handle your own money for the first time and helps you become more responsible and disciplined.
Student credit cards have some bad points.
A way to spend more than you can afford. Even if you have a credit limit, it's easy to spend more than you can pay back. If you don't keep an eye on your spending, you could end up with a credit card debt that is hard to pay off.
A regular cost concern: As a student, you probably only have to worry about spending money on food, housing, gas for your car, and other basic costs. If you have a student credit card and only pay the minimum amount each month, you will have to make payments every month.
Where to get a credit card as a student
Wherever there are banks, schools, or credit card companies, you can get a student credit card. You can even fill out an application online. Companies have even set up tables and booths on college campuses to promote their services and get students to sign up for them.
How you and your future are affected
The key to using and managing your student credit card is to know and respect your ability to pay. If you use it wisely, it can teach you a lot about money and responsibility. It can be very tempting to get, but that doesn't mean it's right for you just because it's there. Just remember to practise self-control every time you show your student card. Your credit score, job, and financial stability depend on that piece of plastic. As crazy as it sounds, a big part of your future depends on it.
