Student credit cards bombard freshmen every year. Parents should be sure to discuss the issue of student credit cards with their college students before they leave home. It is an attractive idea for a student to get their own credit card, especially if they are far from home. However, they need to be sure to get a good card and to use it responsibly.
The best student credit cards are those that have reasonably low limits. Giving a student their first credit card with a high limit is a mistake. Students should understand that since most of them are unemployed, they should not take out a high limit credit card. Student credit cards are meant for necessary items or emergencies, not new furniture or a huge shopping spree. Therefore, to ease the temptation, the best student credit cards have low credit limits.
Another trait of the best student credit cards is a low-interest rate. Most student credit cards will offer 0% APR for the first six months. This is a great deal and students should purchase whatever they need during this time. Be sure to check what the interest rate will be after those six months, however. If it is unreasonably high, then it is not worth it to take the card, even with the great six-month deal. It usually takes students longer to pay their balances on their student credit cards, so the interest rate matters.
Almost all student credit cards offer some type of rewards program. The wise thing to do is find one that you will be excited about using. The more rewards you can get from your student credit cards, the better. Many student credit cards will have rewards programs that allow you to accumulate points and later turn them into gift certificates. This can be a great option for students.
Online Account Management
Student credit cards with online account management are perfect for today’s modern student. Most students do most of their banking online, so this concept fits right into their world. If your student credit cards have online account management, as a student you are more likely to keep up with your account and even use your rewards program more often. This is definitely a great option to look for in your student credit cards.
Lost Card Policies
Many student credit cards are beginning to offer some sort of Lost Card policy. These policies protect the student in case their wallet is lost or stolen. With students, it is much more likely that these situations will occur. Therefore, you may want to think about going over a credit card company’s policy on this before applying. The more protected you are, the better the student credit card is.
Overall, when shopping for student credit cards remember to read the fine print. Although they may sound glorious and offer great deals for a short time, you will also need to make sure their long term requirements are ideal for you. Make a list of things you want from your student credit cards and find companies that match your needs.