#best credit card for college students
Student Credit Cards
A credit card is a rite of passage for college students, but did you know some cards are specifically designed with college students in mind? Choose the right one and you’ll get rewarded for the kind of spending others like you tend to make. Use our syllabus below to narrow down your choices.
How to Choose a Student Credit Card
How to Choose
Credit cards are a fantastic tool to have in your wallet as a college student. They are an easy payment method, and, when used properly, help you build a positive credit history, a key area that lenders will be looking for when you need to borrow money later in life, such as for a car or mortgage. Credit cards are also safe and secure, helping to minimize the impact of fraud on your finances. But with so many offers to choose from, the prospect of picking one can seem daunting.
Thankfully, some credit cards are designed specifically with students in mind. And there are ways you can ease the decision-making process. Follow these five steps when choosing the best card for your wallet:
- Research, research, research. Put your experience doing research for term papers to work. Those skills will come in handy when it’s time to choose a credit card. Each credit card has different features and costs, so you will need to take your time reviewing the options. If you simply settle with the first card you come across, you may be selling your wallet short.
If you do decide that you want a “short-term” card, keep in mind the impact this may have on your credit score. You get “points” for the length of your credit history – the longer the history, the better the score.
Having a cosigner means that your parent or another adult has agreed to take on the responsibility of your debt should you default on your payments. This is a big request to ask of your parent—if you miss your payments, it will not only affect your credit score but might affect theirs as well.
If you have income from a job, you may be able to qualify on your own.
- Interest Rate: The rate that is charged on your credit card balance, expressed as the APR (annual percentage rate). Usually, if you pay your balance in full within the designated grace period, you won’t be charged interest. Funds transferred from another credit card (balance transfers) typically have a separate rate.