The Top Five Tips to Remember about your Student Credit Card
A student credit card is often a great way for a college-age student to begin working toward a positive credit score. However, it is also a time when many students mismanage their credit cards and end up not only putting themselves in debt, even before they graduate, but also ruining their credit score in the process.
It is therefore important to remember that your student credit card comes with its own set of perks, as well as responsibilities. The following, five tips will help guide you as you begin to build a healthy relationship with credit cards.
- Look for a student credit card that offers no annual fee and competitive interest rates. It is a common misconception that you must pay high fees and interest rates with your first credit card. Although you may not be eligible for the lowest interest rates, as they are generally reserved for consumers with a long credit history, you can definitely shop around and find a competitive interest rate to suit your needs and budget.
- Look for a student credit card that is designed specifically for college students, as these types of credit cards often offer incentives and rewards when the cardholder uses his/her credit in a responsible manner.
- Look for a student credit card with rewards. For example, you can earn rewards for free gasoline and free airline tickets. Some creditors even offer rebates or cash back rewards for maintaining a good GPA!
- Always consider your needs and wants before making a purchase. Although this can be a hard habit to get into, it is important to take a step back before making a purchase to ask yourself if your purchase is a need or a want. Often times, using this approach can stop you from overspending and getting yourself into a situation where you are faced with high debt and no way of paying it.
- Be aware and educate yourself on the new credit card legislation that is set to begin in February 2010, as there are specific laws that will affect who – and who cannot – can get student credit cards.
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