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What Students Should Look For In A Credit Card
Credit cards can be valuable tools for college students. They provide instant access to cash for all sorts of things. Another plus is that the student will begin to build a credit history. A good credit history will help in countless ways later on. 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.
Reward points for purchases with the card is pretty common with most of the companies. Points can be redeemed for things like cash, concert tickets, airline tickets, gift cards and many other things. The airline rewards points are pretty popular especially for those students who go to school far from home.
Credit card limits for student cards can be any where from$200 to $5k. Starting with a low limit at first will reduce the chance of the student going wild and spending money on items they really don't need.
Some companies require proof of income and some don't. In the event that a student doesn't have proof of income the card company might approve them with 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.
As you can see there are quite a few things to look for when trying to choose the right student credit card. Make sure to read the contract terms thoroughly so that you don't get a nasty surprise down the road.
About the Author Now you know what to look for when choosing a credit card. The next step is to decide wich card is the best one for you by comparing features. At Visa College Card we highlight a number of different credit cards for students.
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