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How To Choose A Student Credit Card

How To Choose A Student Credit Card

Credit cards for students can provide need access to cash for emergencies or as a way for parents to supplement their cash needs. A student can also begin to establish good credit. Good credit will serve you well throughout adult life. There are a few specific things that you should look at when determining which card will be the best choice.

The interest rate that a credit card charges is the most important thing to pay attention to. Many of the more popular cards have an introductory rate of 0% for the first six months or more. Pay close attention to the terms of the card to find out what the rate will change to after the introductory period is over. Rates can typically vary between 11% and 21% on most student credit cards.

With some student cards points are awarded for purchases. Reward points can be redeemed for things like cash, concert tickets, airline tickets, gift cards and many other things. Airline tickets are especially nice for students attending school far from their homes.

A credit limit can range from $200 up to $5,000. Starting with a low limit at first will reduce the chance of the student going wild and spending money for items they really don’t need.

Proof of income may be required by some card companies. In the event that a student doesn’t have proof of income the card company might approve them with a cosigner. Some cards don’t require proof of income or a cosigner. It all really depends on the specific credit card companies guidelines.

Other cards provide cash back rewards based upon purchases. Cash back varies from 1% to 5% usually based on the specific types of purchases. For example tuition or book purchases may receive a higher percentage cash back then grocery purchases.

Cash advances, balance transfers, rental car insurance, online statements, online bill pay and travel accident insurance are some other nice incentives that student credit cards offer.

Pay attention to the features and terms of the cards you are thinking of applying for so you get the right card for your needs. Make sure to read the contract terms thoroughly so that you don’t get a nasty surprise down the road.