How Do I Choose the Right Credit Card?

Credit cards and college students go together. They might as well be conjoined twins; however the relationship can be volatile. It means that individuals that unable to control their spending habits eventually will finally become 'debt-slave' when they landed in serious financial trouble particularly credit card debt.

Which type of card should I choose in the first place?

The first step is the crucial step in keeping yourself out of debt. It is extremely important that you have to be financial literate before applying for one card.

Do some survey before you applying for a card

Each credit card has its own balances, rates, and other benefits, and different students have different needs that determine which credit card could potentially be most beneficial for their lifestyle.

Identify your personal spending habit - Good or Bad Spending Habit?

It is much easier for students who have an established credit score and a good ability to manage their finances; to apply for a good rewards card. These cards generally tend to carry a higher line of credit, opening up the potential for more spending and larger purchases.

However, they also tend to bring higher interest rates and greater Annual Percentage Rate (APR) meaning that a person who has poor credit score or an inability to manage their personal finances which actually ended up in serious credit card debt.

Even though he or she owes a lot of money, they can find that the potential benefits to these cards is great, however a student without the proper money management skills or without a steady form of income would be well advised to consider another option for their credit card needs.

'Safe cards' for students

Therefore, student credit cards can be great alternatives for other students who have problems in managing their finances when they are first time away from home. Some forms of student credit cards even come in the prepaid credit card form, meaning that students are even more encouraged to keep a closer watch on their spending habits.

Advantages of 'safe cards'

In any case, these forms of cards generally tend to have a smaller line of credit and lower interest rates, which has a two-fold benefit for students.

The smaller line of credit encourages less spending and more responsible spending.
A person will be able to spend based on the low credit limit. This encourages people to plan their spending only at necessary items.

A missed payment will incur less finance charges.
It avoids individuals from getting themselves into long-term credit card debt that tends to build up from heavy monthly fees on unpaid balances.

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