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Credit Cards for College Students – How to Build Credit Early

Credit Cards for College Students – How to Build Credit Early

Credit cards for college students are available online. The downside is that card issuers realize that most students do not have a direction established. This is true since if you go to college and ask students what are their goals, most will say, I haven’t decided yet, i.e. if they are just starting out in school. The good news is, there are great ways for them to build credit early.

Card issuers are aware of this because at one time they were in college too. Therefore, credit cards for students often have high-interest rates, annual fees, as well as other fees attached. If you have good credit, likely you will find a low rate card. If you are searching for credit cards for college students, it is wise to go online, search, and compare and contrast each card. This will give you an idea, of what the cards offer, as well as what the benefits from each card offer you.

The Internet lists several cards that are best suited for college students. The cards available come from leading card issuers and getting one can help them build credit early. The search will help you save money and time while guiding you to the best cards.

Card Offers

Several of the top student credit cards will offer 0% APR up to six months on balance transfers, cash advances, and purchases, providing you do not default on your credit card payments. I will quote the “0 liability,” since this is important. Some credit card issuers will charge you for unauthorized charges made on your card. I recommend that you check the liability agreement to weed out clauses or stipulations, making sure the 0% fees are legit. Some cards have no annual fee, and you will have the ability to manage your accounts free online at any time, and best of all you will not need a cosigner, and only required to have a minimum income. The regular APR’s on student credit cards are a bit steep, however, if you pay the balance off before the grace period ends, the benefits will make up for the interest rates.

The downside is most students have not established credit history. You might notice that each of the cards listed on some sites require that you have good or very good credit. This can set you back and force you to look somewhere else for credit cards. What do I do next?

Searching for Credit Cards While You Build Credit Early

Sometimes if you scroll down the pages, you will notice to the left side of the page or sometimes the right side of the pages, additional links are available. Click on the student links and review the credit cards offered. Second, never give up. Simply because this is a good credit offer, if you do not have a good credit history, it is possible you can still get the card. You might have to pay higher interest rates at first, or possibly an annual fee, still you might be eligible for a college student card of your choice.

College Credit Cards – Building A Good Credit History At An Early Age

College Credit Cards – Building A Good Credit History At An Early Age

College credit cards are intended specifically for students who normally would not qualify for regular credit cards, as they do not have a steady income or a credit history. As a student, it is a good idea to establish a first-rate sound credit history at an early age, which would help you get a regular credit card in the future, regardless of your employment status.

College Credit Cards Versus Generic Credit Cards

In theory, college student credit cards are identical to regular credit cards. However, these types of credit cards are meant for college students who do not have a previous credit history. Hence, these cards have more restrictions or conditions than the generic cards. The top three restrictions include:

– Co-signature from the parent or guardian at the time of application
– Lower credit limit (Example: $500 to $1000)
– Higher interest rates than traditional credit cards: Normal interest rates on these cards are 16-18%

Advantages of a College Credit Cards

A college credit card has become a necessity for most students. The advantages are many provided you understand how the credit card works and use it with caution. Students, especially in the United States, are prolific users of this type of credit cards. This is primarily because it gives them great flexibility to manage their credit.

Students can use these cards to pay their tuition fees, to rent a car, or to fill gas. In fact, there are certain credit cards that offer low-interest rates to students who maintain good grades. These cards are also packed with rewards and benefits. They can help students to learn and manage their finance at a young age.

A college credit card can also be a prepaid one, with a ceiling on the credit limit. This ensures that the student does not overspend and it also helps parents keep an eye on their children’s spending behavior.

Characteristic and Features of College Student Credit Cards:

There are many college student credit card options from Citi, Discover, and Chase. Apart from these, there are many pre-paid card options. Most of these student cards have many similar features including:

– 0% APR for the initial period of usually 6 months on both purchases and balance transfers (typically)
– No annual fee, at least for the first year
– Online account management at no extra cost

While many of the above characteristics are also applicable to many traditional more generic credit cards, there are certain distinctive features that make the credit card stand apart including:

– 0% liability for any unauthorized charges on the account
– A good GPA helps earns points for the cards
– Theft and fraud alerts

It is a good thought for students to have their own college student credit cards. However, it is important to understand that, at an early age, bad credit could have horrible consequences. Parents can assist their kids in choosing the best credit cards based on their child’s spending behavior and repaying capability. College student credit cards promise financial freedom at a young age if they are used judiciously.