A discussion of how credit works is essential. Children are often raised today watching as a parent pulls out a piece of plastic to pay for every purchase.
It’s critical for young adults to understand what follows after a credit card is used. They may not fully accept that using credit obligates you to pay real money on a regular basis.
Opening a discussion of how to choose a student card provides an opportunity to discuss responsible use of credit.
Credit Lines
Most student cards have low lines of credit. A parent as a co-signer might enable you to qualify for a card with a higher credit limit but it’s not a good idea for someone new to using credit accounts.
Student credit cards are meant to cover necessities, books, emergencies, cost of supplies and low daily expenses. A high spending limit can lead students to making impulse purchases or spending high amounts on dining out and entertainment.
Shopping Interest Rates
Student credit cards may offer an introductory rate of 0% for the first 6-12 months. If such offers are not available, shopping lenders for the lowest fixed interest rate is a good idea. The card with a low introductory rate is a fantastic deal fro the first semester only if the standard interest rate after that time period is reasonable.
Time passes quickly and a student who can afford the monthly payments on his debt at 0% interest may be financially strapped if that APR jumps to 24%.
Top Student Cards With Rewards
Often student credit cards carry rewards just as their parents cards do. If you are considering reward cards, you should seek a program that you will use.
If travel is not part of your school experience, you don’t need to accumulate airline miles. However, if going home for holidays means taking a flight, building up air miles might be an attractive reward.
Another alternative is to seek a credit account that offers points that build up with each charge on the student’s credit card. These points may be exchanged in time for cash or for products available on the credit bank’s website.
Another possibility is to seek out credit card offers that provide a percentage discount on certain purchases. The goal is to choose a reward program that provide you with something valuable to you and with rewards you will actually use.
Account Management
Online account management is standard today for most credit lending banks. Banking online is standard for many of us now and the ability to track purchases, keep an eye on your debt balance and easily pay your bill fits the lifestyle of today’s college student.
If budgeting is a challenge for you, you may seek a student credit card that allow you to set spending reports by category. With that option you can see at a glance online if you have exceeded you spending allowance on clothing or dining out and make adjustments immediately.
Loss of Credit Card
You are protected by law against charges made to your credit card if it is lost or stolen. However, being protected from the total amount of loss may depend on reporting the loss or theft in a timely way.
For students, the biggest problem of a lost credit card is often simply the absence of the card until it can be replaced. Look at the fine print of the credit application to see how the lender handles the problem of lost or stolen credit cards.
Most major credit lenders have a 24 hours customer service. This will allow you to report a lost credit card by phone and will guarantee a replacement card quickly and easily.
The lifestyle of college students almost guarantees that lost credit cards are a frequent problem. Make sure it’s a problem that can be solved quickly.
Recommended Reading
- Should you apply for a Visa student card or stay away from it?
- Common mistakes related to student credit card applications and how to avoid these.
- Useful strategies on how to compare student cards and pitfalls to look out for.
- Always read the small print before your apply for a student card, no matter what!
- How to stay away from debt during your college years?
- You should only use your student card for buying the…
- How to find a student card without credit history?
- Five efficieint tips on how to build your credit with high school credit cards.
- Where to find student loans without credit history and is it even possible?
Conclusion
Following useful tips for finding the ideal cards for students can be an opportunity for parents to share their own tips on how to manage credit cards wisely. Those tips will also provide credit cards that will provide the highest benefit for students.
