Advice for Students Who Want a Credit Card

Would you like to own a credit card in college?  There is nothing wrong with using a student credit card.  In fact, it is a great tool that you can use to train yourself on how to handle debt and credit.  It is also a wonderful tool for building early credit history.

Unfortunately, many young people who used student credit cards soon found themselves stuck in a serious dilemma – bad debt.  Due to uncontrolled spending and mismanagement of their credit card accounts, these youngsters had to graduate college with bad debt and bad credit history.  Instead of using their credit cards to build a solid credit rating, their poor credit card use has led them to suffer from bad credit history.

Students can easily apply for a college credit card and there are a number of choices.  The more challenging part about having a student credit card is finding the right one and managing it responsibly.  Listed below are essential reminders for students who want to use a student credit card:

Don’t submit application to get a freebie.  The new credit card law prohibits credit card issuers from conducting marketing campaigns in school campuses.  Nevertheless, they can still advertise free stuff in newspapers and on the internet.  You might think that it’s harmless to submit application and get that free tee-shirt but if you get approved for the wrong credit card, you could be facing real trouble.

It is also not recommended to apply for than one credit card at a time.  Always remember that handling credit card debt is not as easy as it seems.  While you can enjoy the convenience and privileges of being a credit cardholder, you should also be prepared to keep up with your obligations.

Choose a student credit card that suits you. Not all credit cards for students can be good for you.  You need to find one that offers features and services that complement your personal needs and lifestyle.  Of course, you also want a credit card with an affordable rate and reasonable fees.  The only way you can avoid making the wrong choice is by comparing student credit cards in the market. Do not hurry submitting your application.  Take your time in evaluating your choices.

Look for a “no annual fee” credit card.  If you can find a student credit card that carries no annual fee and with a good rate, you can save a great of deal of money from not paying extra charges.  Also, try to look for a credit card that offers zero interest.  Even if it’s just for a limited period, you can take advantage of the zero interest rate to purchase items that you need for your college education.

Don’t get a reward credit card if you plan to carry a balance. Generally, all reward student credit cards carry much higher interest rate compared to regular credit cards.  Hence, if you have doubts whether you can pay your monthly balances in full all the time, you should go with a on-reward student credit card with a low rate.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit card articles that would help build student credit.
Copyright 2011

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