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Students usually mismanage the use of their credit cards especially when it is their first credit card. The common mistake students make when they apply for a credit card is that they don't even check the card's features and policies very well. They just go ahead and apply with the company that gives then the first offer. A wise shopper is one that compares and research first before finally going for something. This should be the same attitude applied when looking for a credit card.
For you to have the right credit card for you here are some questions that you need to ask yourself and the company before filing your application.
How much would be the annual parentage rate? While a lot of credit card providers, offer zero percent interest rate, a lot of students find it weird to find remaining balance even after payment. This could be a sad fast regarding zero percent interest student cards. Better yet, go for credit cards with low interest. Zero percent interest cards usually have some hidden charges on them. You may enjoy 0% for the first six months but be burdened with a lot of charges you never know how they're computed. Most student credit cards carry 12-18% interest so you may want to do a lot of thinking before getting your very first card.
Is there an introductory offer? Most banks have it. It is usually zero percent but that would only last for half a year. Some banks also have some offers regarding balance transfer, cash advance or purchase interest. Always remember the end of the introductory period so you would know how to cut off on your spending and won't be surprised when you receive your bill.
Does the card offer some perks or rewards? Most credit cards do nowadays. It is their way of luring the consumers use their card. Different programs like cash back, cash rebates, rewards points or frequent flier are the most common perks. Go for the card which perfectly fits your interest.
What are the penalty fees? This is as important as knowing the interest rate. Sometimes no matter how hard we would like to pay on time, there would be some emergencies that could delay our payment. Having a heads up on the penalty fees would make you more prepared on the consequences of delayed or non-payment.
When you think that you've found the right card for you, make it a point to be the wisest cardholder you could be.
