Student Credit Cards' Practical Guide for Beginners

Are you planning to apply for a student credit cards? If this is your first time, this article will surely help you out.

Are you a student about to enter college? If yes, have you thought about getting your own student credit card? Perhaps you may think that having a student credit card is not in your list of priorities. Some people may even have a negative impression about credit cards for students, thinking that owning a credit card will only put the student at risk of debt.

It is true that having a credit card involves responsibility. However, when used correctly a student credit card actually has its advantages. Here, we’ve listed the major advantages of owning a student credit card that you should consider:

Get approved for a good credit card deal with no hassle. Generally, the best credit card deals in the market require good to excellent credit. An applicant must also have a stable job or a reliable source of income in order to get approved.

This is not the case for student credit cards. In fact, this would be the only time you can apply for a credit card without worrying about these requirements. Once you’ve graduated, you will not be qualified to apply for a student credit card any longer.

Build your personal credit history early. Having a student credit card is a tool for building your credit history. Why is it an advantage to have an early credit history?

Lenders and insurers have more confidence in clients who have a clean record of credit history. Thus, the older your credit history is the better candidate you would be in the eyes of lenders. It is no secret that the best rates and terms are given to customers with the best credit rating.

Take advantage of the opportunity to purchase online. Purchasing from online merchants is not only more convenient, it is also cheaper. Online shops often sell goods at a lower price compared to regular shops because of lower capital. Enjoy great savings and discounts when you use your student credit card to shop online.

Use a Student Credit Card to Your Advantage

As we’ve said in the beginning of this article, being a credit card holder involves responsibility. It doesn’t matter whether you own a regular credit card or a student credit card - all cardholders must be aware about their obligations to avoid the risk of debt.

To sum it up, there are four rules that a student must remember when using a credit card:

1. Use your student card only for important purchases. Don’t use your student credit card for things that you can pay in cash. Never use your card for an unplanned purchase.

2. Pay your bills on time. Building a solid credit history largely depends on how timely you are with your payments. Be conscious about your payment due dates and always submit your payments on time.

3. Monitor your account regularly. You can do this by examining your monthly bills and accessing your online account (if your credit card company provides online access). Make sure that there are no unauthorized charges in your account and if there are, inform your student credit card issuer right away.

4. Pay off your monthly bills in full. To avoid debt build up, it’s best to settle all your student credit card bills each month. Doing so will prevent you from maximizing your credit limit and frees you from additional costs like the APR and late penalty charges.