Generally, students are not known to be eligble to have a credit card considering their age and their capability to pay their debts on. I came across this site – explaning how students can sustain having a credit card on their pockets. Needless to say, banks and other financial institutions are eager to get credit cards into the hands of college students. But those offering credit cards will be looking after their business interests, not your personal interests (despite what their marketing material says) so it is important to properly research and find the right student credit card offer for you.
Now, the task of researching student credit card has been made far more difficult by an army of unscrupulous Internet marketers pushing whatever programs are going to earn them the most affiliate commission, again, with little or no regard for your long-term well-being.
The reason that researching and avoiding scams when looking for a student credit card is so important is that overspending as a student is frighteningly easy to do. College is the first step out from under our parents’ roof, the first step toward life in the “real world,” and most taking that step have never before had to think about things like interest rates. The result is that many simply don’t think about such things at all, at least not until after graduation when a monster credit card bill arrives in the mail.
These warnings are not meant to cause despair. It is easy to find the right information about student credit cards if you know where to look. A first step would be to brush up on the terms used by most credit card companies. One common term that those unfamiliar with managing their own finances may be stuck on is APR, or annual percentage rate.
APR is a representation of the effective interest rate you will pay on the money you have borrowed by using your credit card. This is an important one to remember. You don’t want to sign up for a credit card, use it even modestly, only to realize that the $5,000 you spent has turned into up to $7,000 of debt.
A 30% APR is on the high end of US credit card interest rates, and most should be able to avoid having to accept such conditions due to a lack of bad credit history. But don’t settle even for a 15% APR if you can do better. Many banks will offer as low as a 6% APR for students that may already have some kind of positive credit history, savings or parents who are willing to co-sign.
Most of the other terms used when looking for a student credit card are fairly self explanatory, like annual fees and introductory interest rates. If you are unclear on any of these terms, use Google, but select your results with caution, or head over to Wikipedia.
After familiarizing yourself with the terminology, you are ready to go fill out a student credit card application. There are a lot of companies and individuals out there trying to sell you someone else’s credit card, and some of them may offer attractive incentives. However, it is usually better to go straight to the bank that issues the credit card. Almost all local and national banks offer student credit cards, and will help you to quickly determine if you are eligible and get you started if you are.
Remember! Watch your spending. Credit cards can add a lot of convenience, but can also get you in a lot of trouble. Bad credit will stay with you long after you have graduated and paid off your debts. Take the opportunity offered by what may be your first credit card to learn how to budget and keep track of your finances.