Student credit cards are very useful tools that help in cultivating a healthy financial habit. Learning to manage finances at an early stage in life will help even in future. You can start building a credit history and learn the ropes as this will help in securing any type of loan in the future. Even if you don`t wish to avail a loan you can build a good credit rating.
Obtaining a student credit card can be an overwhelming experience for most youngsters. First of all, the credit card companies will look into the credit history before giving their approval for the credit card. However, most credit card companies have special student credit cards that are offered with no annual fee and with half the interest rates. However, you must do some shopping around to obtain the best credit cards because there are different schemes in different companies. Choosing a card with no interest rates or annual fees and one which has some basic rewards program is the best bet.
The cash back reward schemes are especially helpful for students to take care of their daily needs and grocery shopping etc. There are various discounts that are offered on college-related purchases and there are added perks that can help students save a lot of money. But students must be cautious while picking credit cards and ensure that they are student friendly. There are cards that can save students some amount of money with every swipe. But the best way to save money is by applying for credit cards that are interest free for a longer period of time.
There are credit cards that have longer introductory periods and that is a good way to save huge sums of money. This is also a great way to learn to manage your finances at an early stage. When you obtain one of these cards you will learn to manage with available credit and you will also learn the value of paying your bills on time. You will require some experience to streamline things like payments etc., and having a longer interest-free period really does help.
You need a valid student ID from the university in order to get an approval for a student credit card. It is also easier to apply online as there are a number of student credit cards. All that students need is a co-signer or they will have to show some proof of income to prove that they can pay up on their cards.