Being a student can be expensive. That’s why securing a line of credit is necessary. It enables you to take care of expenses easily. You’re made aware of the length of time you have to pay off the balance without incurring interest. Splitting up large payments into smaller monthly increments allows you to take care of your needs immediately without worrying about when your financial aid arrives.
Student Credit Card 101
This guide is one that you’ll want to review when you have questions or concerns. It helps you identify the best student credit card offers for you. It allows you to take advantage of the most ideal rewards programs. That way, you get something for nothing just by using your new credit card.
Here’s what to look for in a good student credit card:
A low APR.
The lower your interest rate, the less you’ll pay on the balance you carry. If you need to make minimum monthly payments, you can live with greater ease. You won’t be doing yourself a disservice by doing so, either. You can manage the amount of interest incurred easily until you can pay the balance off in full. The lower the APR, the less money you’ll pay throughout the year in interest charges. Small expenses like this add up relatively quickly if you choose to carry a balance on your student credit card.
No or low annual fees.
You shouldn’t pay a small fortune to be a card-carrying member of any financial institution. Instead, look for an option that charges you no or low annual fees. It means that you can use your card with ease without paying a significant sum of money each year. If you have the opportunity to choose a card with no annual fee or a low annual fee, make it your first choice.
Rewards programs that you’ll use.
You can bank all types of rewards benefits with the right student credit card. From gift certificates to cash to physical goods, you’ve got options. When weighing the pros and cons of a particular offer, see if the card provides you with rewards. If it does, learn which is the best for your needs. Then use your card regularly for purchase so you can rack up rewards.
Discounts for students.
Another perk of some student credit cards is the partnerships they have with other companies. You can get significant discounts by shopping with certain retailers. That means you’re able to take care of the expenses that you need with minimal effort. In addition, you’ll have access to savings and rewards, which makes every purchase put on the card worthwhile.
Easy to understand terms and conditions.
Being able to understand what your rights and responsibilities are as a cardholder is imperative. First, it prevents you from making a grave mistake with your credit. Second, it familiarizes you with things that could potentially affect your financial health in the future, such as grace payments and late fees.
Flexible grace periods.
Having the option to pay when it’s convenient for you is ideal. For example, you may find that you need a few extra days to take care of your credit card bill. Student cards that offer flexible grace periods are ideal because they have your best interests in mind. They take care of your needs in a way that works best for you. You’re not stuck scrambling trying to make a payment, so you don’t get penalized with a late fee. Instead, you pay within the grace period, and everything is good.
Student credit cards vary in type, so it’s essential to read the terms and conditions of an offer before applying for one. For example, you’ll want to know if there are annual fees, cashback rewards, and late fees. Another area of concern that’s very important to know about is the interest rate you will get charged. It lets you know what you’ll pay in interest charges if you carry a balance on your cards.
Use Credit as a Tool to Further Your Education
When used responsibly, credit cards can be tools that help you achieve more of your goals as a student. It makes taking care of out-of-pocket expenses easier to manage and helps you build creditworthiness, enabling you to achieve more of your long-term goals after graduating. If you want to be proactive about your finances, there are many ways to do so while you’re still attending college or university.
Building creditworthiness while you’re still young is highly advantageous. When you’re ready to leave school and start living on your own, you’ll have access to a credit line that serves you well. Your credit report reflects what you were able to achieve as a student. That means that you’ll have a much easier time applying for and receiving credit in the future because of your history of successful on-time payments.