Any student Any student who is 18 years and older can now apply a low cost student charge card account. This is a great way to rack up credits for oneself without having to worry about identity theft or mismanagement of money.
Low Cost Student credit cards
It is normal for the best student charge cards to offer low credit limits and interest rates. Discover® Student Card offers 0% on purchases as intro interest for 6 months and then a regular interest rate of 14.99%.
Citi ForwardSM Card for College Students offers regular APR of 17.24% the intro pay rate and period being the same.
Student credit card V/S Prepaid credit cards
Even though Student charge card accounts are a better deal than most prepaid cards offered by gas companies, it is imperative that you understand that it functions like any other charge card.
The amount of money you are allowed to spend works like an unsecured loan and if you overstep that limit and do not pay back on time, there are consequences. Know your budget and spend accordingly in order to avoid trouble.
Keep Your charge card account bills low
There is a trick that most consumers are unaware of. If you pay off the debt before the next billing cycle, the percentage fee on the transaction will not be charged.
For example, if you buy a compact disc today through your charge card and before the billing cycle is complete, pay it back through a simple online payment or paper statement, you will be charged only a minimal, if not no interest at all. The reason is that it would operate like a temporary loan as if the disc was purchased through cash itself.
The only problem is that this ‘pay back later’ attitude creates a lackadaisical attitude in a lot of people who ultimately gather high interest bills. If this impulsive nature is kept in abeyance, it should not be a problem for students to utilize the college student credit card accounts to their benefit.
Don’t Apply for more than one charge card account
It is a misconception that having more than two credit cards actually increases your creditworthiness. On the contrary having more charge cards will lower your credit scores and rating if you are not careful. It is not about having more cards. In reality, your available credit to credit used ratio matters more in racking up good ratings than the number of cards you have.
Students who are regular with their payments and keep their spending in check will have higher ratings than the one with more cards but whose credit line is poorly used. Therefore, think again before applying for multiple credit cards.
Use your student credit card wisely
Student debit cards are not meant to be a tool used by youngsters to cater to their unnecessary wants. It is not something you should use in a shopping spree. The purpose is that students become aware of their financial responsibilities and be able to manage their finances aptly.
So it always goes along a long way towards building a good credit that you pay your bills on time and do not overstep the credit limits. You should also examine your charge card bills thoroughly since errors and misprints on bills are not uncommon. If you use your card responsibly, it will give you the credit worthy status the card companies seek while doling out the best charge cards available in the market.
Finally, when looking for the best charge card start with a reputable website like www.1-2-3-creditcards.com and always keep your eye on Discover credit cards and Chase cards for the best offers.