Student credit cards bombard freshman every year. Parents should be sure to discuss the issue credit card use with their college student before they leave home. It is an attractive idea for a student to get their own credit card, especially if they are far from home. However, they need to be sure to get a good card and to use it responsibly.
Low Limits
The best student credit cards are those that have reasonably low limits. Giving a student their first credit card with a high limit is a mistake. Students should understand that since most of them are unemployed, they should not take out a high limit credit card. Credit cards for students are meant for necessary items or emergencies, not new furniture or a huge shopping spree. Therefore, to ease the temptation, credit cards for students have low credit limits.
Low Interest Rates
Another common trait of the best student credit cards is a low interest rate. Most student cards will offer 0% APR for the first six months. This is a great deal and students should purchase whatever they need during this time. Be sure to check what the interest rate will be after those six months however. If it is unreasonably high, then it is not worth it to take the card, even with the great six month deal. It usually take students longer to pay their balances on their credit cards, so the interest rate matters.
Rewards
Almost all credit cards offer some type of rewards program. The wise thing to do is find one that you will be excited about using. The more rewards you can get from your purchases, the better. Many credit cards will have rewards programs that allow you to accumulate points and later turn them into gift certificates. This can be a great option for students.
Online Account Management
Student credit cards with online account management are perfect for today's modern student. Most students do most of their banking online, so this concept fits right into their world. If your credit card issuer provides online account management, as a student you are more likely to keep up with you account and even use your rewards program more often. This is definitely a great option to look for in your credit card.
Lost Card Policies
Many credit cards for students are beginning to offer some sort of "Lost Card" policy. These policies protect the student in case their wallet is lost or stolen. With students, it is much more likely that these situations will occur. Therefore, you may want to think about going over a credit card company's policy on this before applying.
Overall, when shopping for any type of credit cards remember to read the fine print. Although they may sound glorious and offer great deals for a short time, you will also need to make sure their long term requirements are ideal for you. Make a list of things you want from your student credit cards and find companies that match your needs.
