Student Credit Cards: How To Choose
Posted on Jan 28 2008 | Tagged as: Finance
In the United States the average college student will get overwhelmed with numerous different credit offers. A credit history will begin to develop when you reach your 18th birthday, so be extremely careful with offers because it can be potentially beneficial or harmful for your entire life.
Your credit record will have long-term impact on your finances. Be sure to exercise caution while you’re in college. You may be tempted by the great credit card offers you receive, but be careful which student credit cards you opt for even though merchants are competing to entice you. You should understand and track what you agree to. You’ll regret choosing a “free” tee-shirt, dinner or other benefit if it costs you your credit history. Take care to use caution and keep good records of your obligations.
Be extremely careful to leave a current forwarding address for your student credit cards, because unpaid balances due to careless application information is a huge problem. Applying for too many credit cards will harm your credit rating regardless of the fact that they were declined or accepted.
Institutions of higher learning typically have an agreement with the major credit card companies. This agreement makes a “cash back” card bearing a symbol of the institution available for every enrolled student. If not abused, this privilege works to the benefit of both the school and the individual. Unlike University meal cards, which may also come from credit companies, this is an actual credit card. It can be used everywhere that accepts plastic. A wide variety of cards are available, and students should consider what benefits they desire.
While credit cards tend to have high interest rates, they can still be used to pay for college tuition and associated expenses. Make sure to read the fine print as carefully as for any other financial matters. Be certain that you understand the terms of any and all contracts before you sign them.
If you remember that any credit you receive today must be paid back at some future date, generally with some interest, you can use your student credit cards to build your credit history and have an easier time in the future when you want to apply for a bank loan to buy a house, start a business, or even buy a business. Future prospective employers and landlords may also review your credit history to determine if you look like a financially responsible and stable person.
There are student credit cards available for many of the well known colleges that are imprinted with the college’s mascot or other school symbol. Responsibly used, college student Visa cards can be a way to develop a positive credit record and at the same time make it unnecessary for you to carry large amounts of money in your pocket at all times. Visa, Master and Chase Platinum student cards have broad acceptance, so they are generally the most useful ones to opt for. Chase Bank also offers “Platinum” student cards which have reduced financing rates for visa or master card.
- Angela Mercer