Lots of options
There are many credit card companies and lenders that offer student credit cards for young people just beginning to build their credit score. The major criteria to look for in student credit cards are annual percentage rates, rewards, redemptions, features and fees. Taking all of this into consideration is how to go about choosing which credit card is right for you. Once you’ve researched all the available cards on the market using the criteria set forth below, you’ll be able to make an educated choice.
Annual Percentage Rate & Rewards
A high APR can add a hefty balance to your account. APR can reach up to 22%, so it is important to check out the card’s APR and make sure it is one you can handle responsibly. Some cards offer rewards such as cash back and free merchandise. Using the card will help the card holder accumulate points that can then be redeemed for rewards. Rewards are also presented in a cash-back format. Understanding your own lifestyle will help you select the best rewards program for you. Pay attention for rewards that expire.
Transaction Fees
Even the Best Credit Cards for Students charge fees for various transactions such as transfers, cash withdrawals, over-the-limit fees, and annual fees. Some fees are charged upon opening the account. This initial fee can dramatically decrease the amount of initial credit available. Some students are already under water before using the card, and it is important to check how much you are charged and where your credit limit stands. Other annual fees are charged at the end of the first year, and each year thereafter. They can range from $35 to $95 dollars a year. Be careful, because these fees add up quickly.
Find the best fit for you
When looking for a student credit card, you need to do your research before making a decision. The best credit cards for a student, who’s just starting to build credit and become financially independent, are those which offer a low APR, valuable rewards and low-cost fees. When used effectively, a student will be on their way to gaining financial stability and great credit standing. This is important for those who want to be a better position to purchase houses, cars, and even boost their careers.
