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Student Credit Cards
One of the best ways for the student to begin building up a good credit sis to obtain a student credit card. Basically, there exist three types of student credit cards:
- Bank cards issued by banks (MasterCard, Visa, and Discover Card)
- Travel and entertainment (T&E) cards, (for example, Diners Club and American Express)
- House cards, they can be applied only in one chain of stores (for example, Sears charge card)
There are plenty of benefits to owning a student credit card. Credit card for students enables them to pay for their tuition costs, cost of books, meals, gas, cell, etc. It also provides them with the opportunity to find out how to budget their money and handle their finances.
For students who want to achieve good credit, a student credit card is an excellent option. For the aim of building and keeping a good credit rating, it is important that students regularly pay at least minimum payment fee on time, also avoid late payments. It is indeed necessary that the students own at least one credit card for buying books, renting a car, for entertainment. Also, they learn how to manage their own finances and take control of their life. This makes easy for them to create a credit history early in their life.
Having a credit card or two can really be a good way to establishing one’s credit. But the problem is that almost half of all students accumulate late fees on their cards and even more maintain balances from month to month. For this reason, they may face some long term effects after graduation.
One must remember that card issuer aims at making money on one in various possible ways. Plastic card issuers don't mind if you make late payment because they get good money at collecting late charges. Hence, you must follow the below-mentioned rules:
- You should be selective and look for a safer deal: college students represent appealing applicants for the companies issuing credit cards.
- Get acquainted with the fine print and understand its meaning!
- Be aware of your restraints and how much you have the means to charge.
Also, credit card companies try to earn extra money with smaller grace periods. Historically, grace periods were full month long; now they make up 23 days. Some cards don’t have grace periods at all. Look for a card with a longer grace period. When one applies for a credit card, it is important the one evaluate its offer details. It is preferential that card have 0% interest introductory period (usually six months) and be with low annual percentage rate. However, the rewards will be the main differentiator between credit cards.
Below listed are the best student credit cards.
Discover Student Card represents a simple solution for establishing your credit. Its benefits include: Easy online Account management; Cash back Bonus on every purchase; $0 fraud liability; 24/7 Customer Service
The Card can offer: No Annual Fee; 0% APR for 6 Months; Full 5% Cash back Bonus on Get More Purchases; Up to 1% Cash back Bonus on All Other Purchases you make.
Make the Discovery Student Card match your life: Paperless Statements, Personal E-mail Reminders, Online Bill Payment, OnlineCash back BonusRedemption and a little extra money every time you apply the Card.
Capital One® Platinum Card for Students
- 0% APR on purchases till February 2008. Then, variable APR, currently 19.8%
- A manageable credit line for controlling one’s finances
- No annual fee or balance transfer fees
$0 fraud liability in case if your card gets stolen or lost
Citi® Platinum Select® Card for College Students
- $0 liability on unauthorized purchases
- 0% Introductory APR for 6 months on purchases, cash advances and balance transfers
No minimum income or cosigner required; free online account management
Citi® mtvU® Platinum Select® Visa® Card for College Students
- 5 points for every $1 on select purchases; 1 point for every $1 on other purchases
- Twice a year earn 200-2000 Thank You Points for maintaining a good GPA
Earn 25 Thank You Points for paying on time
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