If you’re a young person with very little credit history, one of the best ways to establish your credit history is by opening a student credit card. If you’re currently enrolled at a college or university, you may have noticed credit card companies on campus offering t-shirts, hats, and other giveaways in exchange for a completed credit card application.
While that’s one way to apply for a student credit card, it’s recommended that you research available offers online to ensure you make the best decision. It’s easy to compare student cards by simply typing “student credit card offers” into any popular search engine and comparing results. There is also a list of student credit cards at the bottom of this page.
While some may see student credit cards as a negative, the fact of the matter is that students, like all people, need to establish credit. Sure people will argue that you don’t need credit, and that you shouldn’t buy anything you can’t afford, but that’s a very short-sighted approach. Most consumers will need to secure an auto loan or finance a mortgage in their lifetime, so establishing credit early on is vital. Otherwise you may find yourself in a tricky situation down the road.
Students can usually get approved for a student credit card with very little credit or none at all. The credit limit will be low, often only a few hundred dollars, but it will serve an important role as the beginning of your credit history. Your first credit card can make or break you, so be sure to pay on time and fully understand all the terms of the cardholder agreement. If you pay on time and show creditors you are a responsible borrower, they will raise your credit limit, and more credit card offers will come your way, offering better terms, lower APR and 0% APR.
These days even students can obtain 0% APR student credit cards without having any prior credit, although the 0% APR period is typically limited to only six month. Students can also take advantage of no annual fees and reward programs right off the bat.
The credit card industry has opened up its doors to students in the last decade or so, and the options seem to be growing everyday as credit card companies battle for young adult business. Of course one of the major reasons credit cards target young consumers is their likelihood to default and miss payments, allowing the credit card companies to charge outrageous APR percentages, annual fees, late fees, and more.
So before you set out to get a credit card, understand that it carries with it a ton of responsibility and the decisions you make now will affect your future financially. Anything you spend with a credit card must be paid back, and there’s no way around that. Don’t be fooled into thinking a student credit card is free money, or a means to buy things you can’t afford.
A student credit card is a crucial first step in building your credit, so make sure you’re financially ready and mentally aware to take on the responsibilities of credit.
Let’s look at a few good looking student credit card offers currently available. Click on the credit cards to learn more and apply.
