Good Credit Cards for Students
University is an excellent time to begin building credit with these good credit cards for students. These cards specialize in student credit and they can help you finance your education while building a solid credit history. Browse our selection of good credit cards for students and apply using a secure online application today.
Building a good credit history is more important than ever these days. Lending institutions are tightening their belts and scrutinizing potential borrowers very closely. For young people, building good credit can begin with their first credit card.
There are some good credit cards for students that can help them to reach financial maturity by allowing them to develop a credit history.
When you first get to college you are likely to receive many credit card offers from different lenders. The student center may be filled with tables from local banks and lenders all looking to get a shiny new credit card in your hand.
Your best bet is to pass up these offers along with the free pizza and t-shirts they are giving out. If you want to build credit and trust, then ask your parent if you can become authorized on their card.
This way, you will demonstrate that you are able to borrow and pay back before you ever have a card of your own. If you borrow on their card and do not pay back the obligation, then you will know that you are not mature enough to handle a credit card.
Secured Cards for Students
Another good credit card for students is a card that is considered secured. These cards are issued by banks and work just like any other credit card. The difference is that you must already have the money you wish to borrow in the bank that issued the card. In this sense you are borrowing against yourself and the bank is taking no risk.
While this may seem to not have many advantages over paying cash, you will be building a good credit history.
If you use these cards for small purchases each month and then pay back the amount owed on time in full, you will develop a great credit rating in no time. Then you will be able to get an unsecured card at a decent rate.
The rate that you are loaned money by your credit card company will depend on your past credit history. If you have outstanding loans or unpaid debts, then you will not be offered a great interest rate. If you have a decent credit history then you will be able to negotiate for a lower rate.
This is one of the best reasons there is for achieving and maintaining a clean credit report. You will end up paying less for items that you purchase on credit if you are able to pay back the loans at a lower rate of interest.
This will save you a bundle of money over the long haul of your financial life.
Factors to Consider Before You Apply
There are some other factors to take into consideration if you are a student that is shopping around for credit cards. Many cards offer different incentives such as cash back for purchases. This can be a great way to begin saving money as you will receive a cash bonus in your account each time you use the card for an approved purchase.
Other cards will offer merchandise credits to popular brands for using their cards. Be certain to check what the offers are so that you can tailor the best one for your own particular needs.
For example, a card that offers cash bonuses or air miles for frequent flying would be great for a student that travels a lot or a great distance to return home for the holidays.
It is important to remember to not get in over your head when it comes to credit. Student credit cards are easy to use and the life of a student can offer up many opportunities to use them. It is a good practice to leave the cards at home if you are going out for a night on the town.
This way, you will not give in to sudden urges of generosity that sometimes arise when a good time is being had. Develop a good credit history and your financial future will be safe and secure.
* We recommend you read the student card issuers terms and conditions carefully for the most up to date rates and fees before applying.