There are so many credit cards to choose from these days that carry high interest rates, monthly or annual fees and huge penalties for late payments. Some even have special introductory offers that lure prospective cardholders into applying for them, yet terrible APR once the initial offer is over. A college student getting their first credit card does not need any of this hassle. They have enough to handle in their busy life, credit card issues shouldn’t be one of them. Here are a few key rules to go by when shopping around for that first credit card for students.
- Never get a credit card with monthly or annual fees
- Look for reasonable interest rates
- Find credit cards with low late fees
- Don’t be fooled by cards with rewards
Click Here to find the Best Student credit cards and establishing credit cards
So many college students are falling into the trap of buying those credit cards with fees left and right. There is an alternative to this. Before applying for any credit card, make sure to look in the terms and conditions section. If there are annual or monthly fees, move on to another offer because these fees add up. Most of these cards are mailed to the cardholder with almost the entire balance already taken up by fees. It is vital to look for a credit card that has zero monthly or annual fees.
Typically, college students should pay the balance on their credit cards each month to avoid late charges. Unfortunately that is not always possible. College students graduate with an average of $2,800 in credit card debt. With that said, the interest rate does matter and can help save a ton of money in the long run. Some credit cards come with an introductory offer of 0% APR for the first six months which is great. What matters though, is what the interest rate will be after the introductory period. The best rate a student can get is around 9.24%, although an APR under 15% is acceptable.
College students are new to the credit card world and will probably make a late payment or two before they become accustomed to the new responsibility. That is why it’s so important to find a credit card that doesn’t charge its cardholders an arm and a leg for being a little late. College students should be aware of the late payment fee and try to find a credit card that charges no more than $28. Some charge as high as $40 or more. College students could save significantly by making sure the late fees are minimal.
The many rewards that credit cards offer, such as points and miles, are a wonderful advertising tool for the credit card companies, but really don’t do the average college student a lot of good. Most of these rewards cards come with significantly higher interest rates which can outweigh the benefits of the rewards that are given. The average college student does not accumulate enough points to matter. These rewards points are better accumulated for people who spend frequently.
Building and maintaining a good credit rating with that first credit card will help build a sturdy foundation for the rest of your life. Make sure to choose wisely and keep in mind these rules for getting the best credit card possible for a college student.
Click Here to find the Best Student credit cards and establishing credit cards
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