Build Credit and Earn Rewards With a Student Credit Card
by John Ross
For a long time it was difficult for students to obtain a credit card since most students
lacked any credit or employment history. But nowadays credit card companies offer
credit cards specifically for students recognizing that by offering credit cards to
someone at a young age they can gain a lifetime customer. Credit card companies
started a new segment of credit cards called student credit cards or also known as
college credit cards. These credit cards typically have a low credit limit usually
between $500 to $1,000 and generally come with a higher interest rate as well.
There are many benefits for getting a student credit card and there are also some
things you should look out for when comparing cards.
Benefits of a Student Credit Card
Helpful tips on choosing a student credit card
As a final note be sure to manage your credit wisely. Numerous college students
have accumulated a large amount of credit card debt by spending recklessly. Your
first credit card is an important step in establishing your credit rating and developing
good financial habits so use it with care.
About the Author
John Ross is a freelance writer for Best Rewards Credit Cards.
by John Ross
For a long time it was difficult for students to obtain a credit card since most students
lacked any credit or employment history. But nowadays credit card companies offer
credit cards specifically for students recognizing that by offering credit cards to
someone at a young age they can gain a lifetime customer. Credit card companies
started a new segment of credit cards called student credit cards or also known as
college credit cards. These credit cards typically have a low credit limit usually
between $500 to $1,000 and generally come with a higher interest rate as well.
There are many benefits for getting a student credit card and there are also some
things you should look out for when comparing cards.
Benefits of a Student Credit Card
- Establish Credit. Student credit cards are great for helping you establish credit
history. Many students have little or no credit history so it is more difficult for
them to get approved for a loan or even an unsecured credit card. Student
credit cards have lower credit requirements meaning they are easier to acquire
then a typical unsecured credit card. This allows a student who has little or no
credit history to get a credit card. Once you have a credit card you will be able
to build your credit history by paying your credit card bill on time every month.
- Earn Rewards. Many student credit cards now offer rewards when you use
them. Typically you can earn one point per dollar you spend with you student
credit card. You can redeem points for merchandise, gift cards, or cash back.
Student credit cards typically offer extra rewards when making purchases at
gas stations, clothing stores, or restaurants.
Helpful tips on choosing a student credit card
- Pick a student credit card that has no annual fee. An annual fee can be costly
for someone who is on a limited budget. Most student credit cards don't have
an annual fee but always check to make sure the card doesn't have one
before applying for it.
- Look for a card that has the lowest interest rate. Many college students carry a
credit card balance each month. If you think you may carry a balance you
should look for a credit card that offers a low interest rate to avoid paying too
much interest.
As a final note be sure to manage your credit wisely. Numerous college students
have accumulated a large amount of credit card debt by spending recklessly. Your
first credit card is an important step in establishing your credit rating and developing
good financial habits so use it with care.
About the Author
John Ross is a freelance writer for Best Rewards Credit Cards.
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