CardsWithRewards : Student Credit Cards

Getting A Student Credit Card

A lot of Student Credit Cards offer great benefits very similar to those of non-student cards. But with so many offers available, it’s worthwhile to do a little homework to get the card that best suits your needs. Don’t just respond to the first offer you come across, but take some time to educate yourself on how to choose the student credit card that is best for you

A Student Credit Card is not simply a convenience, but also an important step in building a solid foundation for your financial future. When used wisely, a credit card will help you acquire financial management skills. In addition, as long as you stay regular with your payments, a credit card will enable you to build a good credit history, which will benefit you in numerous ways when you graduate.
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What To Look For When Choosing a Student Credit Card

When comparing Student Credit Cards these are some of the things you should consider:-

• Many student credit cards come with great 0% APR introductory offers, but these typically expire in as little as six months. While it’s best to pay your card off in full every month, many students find that they do carry a balance. If that is likely to be the case for you, pick a card with a low annual percentage rate (APR). It’s not uncommon for interest rates to vary from 11.99% to 19.99%, so you will save quite a bit over the long term by going with the card with the lowest interest rate. So find out what is the APR (Annual Percentage Rate) charged on the card.
  
• Some cards offer a 0% APR for balance transfers, some a 0% APR on purchases, and a few offer this rate on purchases, balance transfers, and cash advances. If you have a balance on another card you may wish to transfer it to a new card. Think about how you mainly will be using the card—for purchases, or make a balance transfer from another card. Then choose the card that best fits your needs. As always, it’s prudent financial sense to take cash advances only in an emergency. So find out what is the introductory offer.
• Many credit cards award you additional benefits, such as cash back or reward points on purchases. These can accumulate into additional perks over time. Again, choose the rewards that best match your interests. So find out which other benefits the card offers.
• Many credit cards come with a variable rate APR, which means that the APR is linked to a financial index. The rate will go up or down as this economic indicator changes, raising or lowering the interest rate on your account. A fixed rate will not change with the financial markets. So find out if the APR is a fixed rate or a variable rate.
• What are the penalty fees for making a late payment or exceeding the credit limit on the card? Read the Terms and Conditions carefully in order to understand the charges and your responsibilities as an accountholder. So find out what the penalty fees are.
• If you are late on a payment or miss a payment altogether, credit card issuers reserve the right to convert your standard APR to a higher default rate. Default rates typically are exceptionally high, often in excess of 30%. Some agreements also let card issuers raise the rate if you default on another loan. Read the fine print to find out what would trigger a default on the card agreement and be sure to avoid any actions that would cause you to be in default. So find out what is the default rate and what triggers it.
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Maximize Benefits With A Reward Student Credit Card

Student Reward Credit Cards cards can be a great way to earn a little extra cash or perks like airline tickets, rebates towards the purchase of a new or used car, tickets for MTV events, gift cards and much more.

When researching reward credit cards, look for the card that offers the best incentives on purchases you frequently make. Some cards award you a full five points (roughly equivalent to a 5% cash back) on charges made in restaurants, bookstores, record stores, video rentals and movie theaters and one point for other purchases. You also get rewarded for getting good grades (up to 2,000 points a year) and for paying your credit card bill on time. Points can be redeemed for gift cards, CDs, airline tickets, or tickets to the MTV Music Video awards.

If earning a straight cash back on purchases sounds more appealing to you, check out cards which give a 5% cash back in popular categories that change four times a year, like travel, clothing stores, movies, and department stores, and 1% cash back on all other purchases.

Finally, some cards enable you to earn credit towards the purchase of a new or used car, towards car maintenance expenses, or for gas gift cards. You earn a 3% rebate for purchases in supermarkets, drug stores and gas stations, and 1% on all other purchases. You even earn points for each mile you drive.

To determine which card best fits your needs, look at your spending patterns and which type of rewards you prefer to earn. Remember that if you will be carrying a balance, you may be better off looking for the student credit card with the lowest APR.

To see our reviews of the best Student Reward Credit Cards click here.
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Student Credit Cards and Building a Solid Credit History

Having a Student Credit Card offers important benefits in addition to convenience and easy access to cash. It enables you to start building a credit history and, as long as you comply with the terms of the card, acquiring a good credit score.

A high credit score will give you countless advantages later in life. Your credit score determines how easy it will be for you to get a loan and what terms and interest rate you will be offered. It even influences how much you will pay for your car insurance.

A low credit score limits your financial options considerably, and it can be a source of much distress, while a high score gives you tremendous financial flexibility. In short, your credit rating will have tremendous impact on your future financial life.

Your credit rating is built up over time, and it is based on your payment history and how well you have managed credit in the past. To establish a good credit rating, use your Student Credit Card wisely. Always make payments on time and never exceed your credit limit. Don’t let your outstanding balance build up and, as much as possible, pay the balance off each month.

The financial decisions you make while in college will have a long-lasting impact on your future. Managing a Student Credit Card well provides a great introduction to how credit works, how to use it to your advantage, and how to avoid the mistakes many people are apt to make when using credit cards.
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