Making Sense Out Of A Student Credit Card

Being a student in college can be fun, especially if you have access to funds – without having to worry about always carrying cash with you. A student credit card can take care of many of those problems and provide you with a credit rating for later on, too. Here are a few things you need to know about how to select a student credit card that will be just right for you.

Two Kinds Of Cards

If you already have a credit rating, then you may be able to apply for a regular credit card. Otherwise, you will probably have to settle for a secured credit card. These kind of credit cards require a deposit of close to the amount of the credit limit on the card – and some even more. There is usually a higher rate of interest, an annual fee, and oftentimes there are other ones, too. You will probably want to stick with the major companies, though, since there are scams connected with this type of credit card.

Check The Interest Rate And Fees

Every credit card has an interest rate. It only applies however, after the introductory offer, and if you leave a balance on the credit card or pay late. Your introductory offer can be anywhere between three and fifteen months. Many student credit cards have fees attached, and there may be more than one.

The Rewards Offered

You can find different types of rewards with different companies that offer student credit cards. There is quite a variety of rewards that you can get, including CD’s or DVD’s, free movie rentals, discounts on clothes and books, and much more. If you want, some students cards are geared toward drivers and your points can be used toward the purchase of you next car – new or used.

Most student credit cards will give you one point for every dollar that is charged to the card. Some companies will give you different rates of credits for different types of purchases. This means that you may get one point for every dollar charged, but you also could get as much as five points toward the purchase of things related to the card.

Special Benefits For Good Grades

There are some student credit cards that give a whopping 2,000 points per semester if you maintain a B average or better. That adds up to 4,000 points a year, and that will definitely give you some buying power.

Student credit cards are also geared to help the student to be able to get good credit if they use the credit card wisely. This means that they may require you to read some material before they issue the credit card. The issuing company will also usually make online services available so that the credit card can be paid easily – and on time. Besides the above, at least one credit card will also give you 25 points each month that the payment is made on time. Before you actually sign-up, though, you will want to compare the various student credit card offers and this will enable you to get the best one for your needs.

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