Use student credit cards with care for a better financial future

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Credit Card Applications » Research » Guides » Building Credit History » Use student credit cards with care for a better financial future

Use student credit cards with care for a better financial future


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

Being a student and away at college is a very exciting time for everyone. Especially during this time, it becomes more important than ever to have enough money to do things with your peers. Student credit cards are a sought after item for a number of reasons including the fact that it is the first step of financial independence for a youngster. In addition, the chance to obtain interesting discounts at a lot of the places they frequent makes it even more of a popular choice among students.

For qualifying for a credit card, a student first has to be over 18 years of age. The student will also need to furnish documents that will allow the bank to see that he can be a credible card user. This will include proof of employment indicating that he or she can pay their own bills. Getting a student credit card is a great idea not just for those times when you really need the money. It is an excellent way to get stated on getting a credit score that will help you for your other financial transactions. The higher your credit rating, the better it is for your loans, mortgage, insurance and more.

When considering student credit cards don’t make hasty decisions. Since this is your first time with a credit card and if you are prone to shopping then avoid a rewards credit card. There have been many people who have been misled by the thought of a reward into spending more than they can actually afford. You need to be more level headed about handling your credit card if you do not want to end up paying bills over bills each time you earn some money. Start with a simple credit limit and a lower interest rate. Once you establish a good credit rating, you can choose to extend your credit limit on par with your income.

Pay your monthly minimum balance. If you have some extra money on hand to pay towards the credit card then do it. Don’t wait for it to rise up to become an amount you cannot handle on your own. Many students consider the credit card to be their emergency fund. While this is okay in a real emergency if you consider every time you need a new outfit for the parties to go to be an emergency, you will be in considerable trouble. Plan your spending carefully.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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