Students who have reached 18 years of age can apply for a student credit card. There`s no need for students to have an income as back-up for the applied credit card. What`s more, they are eligible for a high credit limit despite their minimal or no earning. The first hurdle for most students is obtaining their very first credit card as they would just be beginning with a credit card. They must pick a credit card that accurately fits all their requirements. This type of credit card if chosen wisely can be seen as one of the best options for students.
As a prerequisite, students needn`t have credit experience to apply for a credit card. A credit card that will be in accordance to their limited history should suit them just fine. For beginners, it`s good to have a low credit limit with minimum charge as there are higher chances of debt with a high credit limit. Students must also keep in mind the interest rate that they would be charged with the credit card. For obvious reasons, a student credit card must be accompanied by a low interest rate so that they don`t have to cough up much to maintain their balance. Though it could be a little difficult to find a credit card that applies low rates of interest, searching carefully could be of much help. In a worst case scenario, they must ensure that each month`s payments are made on time so that large charges on the balance are not used.
Typically, a student credit card that isn`t complemented by an annual fee should be selected. In many cases, certain credit companies waive off the fee if consumers buy items in a period of 12 months. It is important for novice users to gain complete information on all the fees that they could be charged for with their credit card. Late fees are used for virtually all credit cards and cards that come with unnecessary ones such as an account maintenance fee should be avoided. Its best for students to pick a card without a cosigner as it makes them more responsible towards payments. Additionally late payments made by the student could have an impact on the cosigner`s credit as well.
Like most other cards, student credit cards too are accompanied by rewards. Individuals must be careful to not misuse their card with the hope of getting more rewards.