The content is accurate at the time of publication and is subject to change.

Research: Simple factors that help choose the right student credit cards -

Finding the right student credit card is indeed a challenge today. It is a time consuming task to sift through the various offers and decide the student credit card that is best for your needs. Added to this, there are certain rules of the CARD Act that you need to understand before you apply for the student credit card. According to one of the rules of this Act, banks cannot give out credit cards to students if they do not have a co-signer or cannot produce sufficient proof of income. If you manage to meet either of the two criteria, then here are some factors to consider while choosing the right credit card.

The credit limit

Since the student credit card is the first credit card for most people, banks do not offer a high credit limit on these cards. These cards are to help you establish a good credit history without getting into debt traps. The credit limit offered varies from one bank to the other; hence, find out the maximum limit you will be eligible for.

Rate of interest

The rate of interest on student credit cards is slightly on the higher side. This is because students are considered to be high risk applicants since they do not have a credit history to reveal their repayment ability. Ensure you choose cards that offer the best interest rates and optimum credit limit. You can get the rates lowered over a certain period of time if you manage the card well and make your payments on time.

Annual fees and other charges

Most of the student credit cards today have annual fees associated to them and most of the time, these fees are pretty high. However, there are banks that do offer these cards without any annual fees. While such offers are tough to find, it is worth investing time to learn more about such cards and apply for them since they will help you save up a significant amount of money. Also, find out about the various other fees and financial charges that may be levied on your card at a later point of time.

Rewards offer

Almost all student credit cards offer rewards programs to card holders. Ensure you choose the card with rewards that will be of use to you. A card that offers cash back or discounts at various stores would be beneficial. Do not opt for cards with fancy rewards since the charges associated with such cards are always high.