Getting your first credit card is exciting and gives you a sense of freedom. You don't have to carry cash around with you, and you can also "charge it." A student credit card isn't always the same as a regular credit card. Because of this, there are some things you need to know before you apply for one. Here are some things you need to know to get a good one that fits your needs.
Some student credit cards don't require a cosigner or even a certain amount of income, but most do. Student credit cards can be broken down into two main types. One is like a regular credit card, and the other is called a "secure card."
The secured credit card works like a regular credit card, but you have to put down at least half of the credit limit and sometimes up to 150% of it. Some of these can have very high fees, so make sure you understand everything before you apply. It is even possible to charge so many fees up front that there isn't much left on the card to charge once you get it. Check out the company carefully, or just stick with the ones you know.
Check the interest rate when you're looking for a good student credit card. Most of the time, these will cost more than a normal credit card. One thing you need to pay close attention to is what happens if you miss a payment or charge too much on the card. First, your introductory offer could be cancelled. Second, the interest rate on your card could go up to more than 28 percent! So you want to make sure that your student credit card will be handled as well as possible.
If you use your credit card to buy things, you can get discounts or even free stuff, depending on the type of card you get. This will make it even more interesting for you. You can choose your student credit card so that different purchases earn you rewards. Most cards will give you 1%–3% back on things like gas, groceries, and medicine. Other cards give you points when you buy CDs, DVDs, movies, electronics, restaurants, or theatre tickets. Again, depending on the card you get, these kinds of purchases can earn you points toward different kinds of purchases. If you keep a B average, some credit cards will even give you a lot of points every year.
Even if your student credit card isn't the best one you can get, it can help you get the kind of credit card you want. After you've had it for a while and used it carefully, like paying on time and not charging too much, it will show to different agencies that you can handle it. With good spending habits, your credit score will go up, which will let you get a better card in the future.
