Now that back to school season is in full effect we are going to give a few tips for college students looking for a credit card. Using a student credit card while you are still in school is a fantastic way to build your credit. To build positive credit you need to be a responsible card user by doing things like paying your bill on time, staying within your credit limit and paying your card off each month. By doing things like this you wont find yourself in credit card debt, but rather you will start down a path that builds a strong credit history. With that said, there are certain features you should look for in a credit card to make sure you are getting the best of the best. Here are 4 things students should look for in a credit card offer.
Finding a credit card offer that gives a 0% introductory rate is a great way to start off with a new card. An offer like this means you will pay no interest on your purchases for a specified time. For example, you might see an offer that gives 0% for 7 months, like the Citi Forward® Card for College Students. A card that offers 0% is ideal for those that are planning on carrying over a balance. This will give you extra time to pay the card off before the interest hits. Students could use an offer like this when its time to buy books or any school supplies you might need. This kind of offer is also great when you need to make a big purchase because you dont have to worry about paying interest if you pay the card off within the terms of the agreement.
A credit card that offers a rewards program is one way you can save yourself money. We all know any college student can stand to save some money and a rewards card is one way to save. Take the Discover® Student Open Road Card for example, with this card you earn Double Cashback Bonus automatically on your first $250 in purchases at any gas station and any restaurant each month. You also earn up to 1% on all your purchases. In addition, you can earn 5% to 20% cash back when you shop at the exclusive online mall. When you are ready to redeem your rewards you can cash in for gift cards, merchandise, cash or charity. The key to maximizing a rewards card is to choose a card that rewards you in the categories you most often make purchases in. Like with the Discover® Student Open Road Card, this card gives extra cashback for gasoline and restaurant purchases so if you dont make those kind of purchases than there might be a better rewards card for you.
From time to time there will be student cards that give limited time bonus offers, like the Citi® Dividend Platinum Select® Card for College Students. This card gives $50 cash back after you make $150 in purchases within the first 3 months of account opening. That breaks down to just spending $50 a month and within 3 months you can get a cash back bonus of 50 bucks. Thats an easy way to put some extra cash in your pocket. This particular card also gives 0% for 7 months and has a nice rewards program that gives 2% cash back in rotating categories and 1% in everything else.
If you are a college student with limited credit history or even unfavorable credit dont fall for cards that have outstanding interest rates. Typically, the better cards are going to offer a rate from as low as 13.9% up to 21.9%. The rate you receive will be based on your creditworthiness. If you cant qualify for a low rate then you could see if a parent would co-sign for you. As a matter of fact, if you are under the age of 21 you will have to have a co-signer in order to qualify. Stay away from cards that offer extremely high interest rates. Anything over the rate of 20% for a student card is probably one you should not apply for.
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