Student Credit Cards With Rewards

Student credit cards were not available for a long time since it was difficult for students to provide any credit history or employment history. But nowadays credit companies have started offering credit cards specifically to students recognizing that by offering cards to at a very tender age they will get a customer for lifetime. Companies have now started a new segment of cards called student credit cards or also known as college credit. These credit cards typically have a low credit limit usually between $500 to $1,000 and generally do come with a higher interest rate as well. There are many benefits attached to a card. But there are also certain things you should look out for when comparing cards.

What are the Benefits of a Student Card

It helps to establish credit. Student credit cards are great for helping you establish credit history. Many students have little or no credit history so it is all the more difficult for them to get approved for a loan or even an unsecured card. These cards have lower credit requirements, in the sense they are easier to acquire then a typical unsecured card. This allows a student who has little or no history to get a credit card easily. Once you have one, you will be able to build your credit history by paying your credit card bill regularly each month.

It helps to earn rewards. Many student credit cards now offer many rewards when you use them. Typically you can earn one point per dollar you spend with you student card for your purchases. You can redeem points for merchandise, gift cards, or cash back. Student credit cards typically offer extra rewards when making purchases at gas stations, groceries, clothing stores, or restaurants.

Helpful tips on choosing a card

You should always pick a student card that has no annual fee. An annual fee can be costly for someone who lives on a limited budget. Most cards don't have an annual fee but always check to make sure the card doesn't have one before applying for the same. You should look for a card that has the lowest interest rate. Many college students carry a credit card balance each month. If you think you may carry a balance you should look for a credit card that offers a low interest rate to avoid paying too much interest.

And finally you should make sure to manage your credit wisely. Numerous college students have accumulate a big quantity of credit debt by expenditure irresponsibly. This is very much harmful. Your first credit card is an important step in establishing your credit rating and developing good financial habits. So make sure to use it with care.