Student credit cards: Basic guide

by Jakob Jelling

Many students start becoming consumers of credit when they get their first student credit card in college. Student credit cards can give them a highly convenient way of making purchases; however this is also a time of great responsibility as they start their first endeavor into money management. You need to be careful when using your student credit card. This is the time you start building your credit report which will come into play when you start needing money to buy a house or a car. It is very easy to misuse credit in college. Usually it is very expensive being a college student nowadays and it can be hard to keep track of bills and pay them on time. However a student credit card can also be very convenient. It can teach you better money management skills. If you work hard you can start building a solid credit score. Students can also avoid carrying around cash. Many student credit cards offer protection incase the card gets stolen or lost. There is much choice for students when it comes to selecting a card. The first thing when choosing a student credit card is to find one with a low APR. Many student credit cards will even allow you to accumulate points from your purchases which you can redeem for DVDs, books, CDs and other cool rewards. If you misuse your student credit card and keep making late payments, you will be under a huge debt burden when you graduate and need to buy a home or a car. Student credit cards are not a student loan. Consider them as high interest loans which you should pay off immediately. On the other hand by properly managing your payments, you can have a good credit score when you graduate. If you make your payments on time, you can also avoid the interest charges. Be careful of the late fees on your student credit card. Student credit cards generally have low interest rates but they might have a smaller maximum credit limit. If you are a college student, you may have received a lot of student credit card offers through the mail. Credit card companies want you to get hooked on their card early in life, so that you remain their loyal customer in the future. Online applications have made it very convenient to apply for a student credit card. In addition the Internet can let you shop around from a wider selection of cards right from your home. Usually it is a secure way to apply if the online site has a secure server. You can qualify for a student credit card if you are at least 18 years of age. About the Author Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.