For a college student, having a credit card is not a luxury but a necessity. As a college student, you need to spend on many things like books, stationery etc. Besides you have to pay the fees, apartment or hostel rent, food charges etc. As your cash is limited, it is difficult for you to meet all your needs. Credit card can alleviate your problem to some extent.
When giving credit card to their children, parents have to inculcate responsibility and discipline in the children while using it. Parents play an important role in directing and protecting the children in using money properly. This is more applicable to the college students. Due to irresponsible spending with credit cards, many college students have landed themselves into debt.
There are various credit card products for the college student. But before taking any student credit card, it is important to remember that these cards have high APR as against normal credit cards. While selecting the best credit card, consider the following points.
Reduced APR – The average APR of student credit card is far higher than the APR of normal credit cards. The reason is that the companies need payment assurance as they deal with people whose payment capacity is limited or non-existent. But there are few lending companies and banks that offer lower APR. The APR is more or less equal to the APR on the normal credit card but not as low as a secured credit card.
Cash Advance – A card that allows you to withdraw cash from an ATM is an asset for college students. However you cannot charge all your needs to the student credit card. You can use college student credit cards for this purpose.
Balance transfer – If you have many accounts or have extended accounts from parents, this facility is beneficial for you. It will help you keep a record of your spending and use the card responsibly.
Freebies - Usually, banks and other companies offer rewards and rebates for each transaction or purchase charged to your credit card. These offers can be very beneficial.
Use online search for a credit card. There are innumerable offers from credit card companies to college students. As the needs and tastes of each college student vary, banks and lending companies have brought different types of student credit cards to fit the profile of each college student.