Good Credit Is Vital
Establishing good credit early is a necessity in today’s economy. Lenders are being a lot more picky about whom they are loaning money. Despite what you may have heard, it is a good idea to have a credit card. If you are just starting out, Low APR Student Credit Card is a great way to begin to establish credit responsibly. When searching around for the best student credit card, the most important feature should be a low Annual Percentage Rate, or APR. APRs have skyrocketed, and being mindful of how much is being charged to you is the first step to financial responsibility.
Pay Your Balance Every Month
Making a payment each month for the entire balance of your card is great practice. This can help you avoid fees that are associated with high APRs, but most people stick to making the minimum payment instead. Where there is a balance at the end of the month, it can be charged up to 22% in APRs! Finding a Low APR Student Credit Card is your best bet of keeping your head above water and your balance positive.
Rewards vs. Low APR
Rewards and incentives may seem enticing, but card with these offers often hide high APRs. Low APR Student Credit Cards are more logical and responsible for the student just starting out. A lot of students use their credit cards for textbooks, food, clothes, and evenings out. However you choose to use yours, it is important to remember your credit line and not go over it. Not only does this add over the limit fees, it also may affect your credit rating.
Make Sure Rate Is Not Introductory Only
Low APR Student Credit Cards usually come with an APRs between 11 and 15%. It is important to find out if this is just an introductory rate, or part of the long-term contract. Credit card companies often entice people with low APR’s at first, and then steadily raise the rates over time. Adding annual fees and penalties, and you could possibly be looking at shelling out more than 50% of your initial credit line.
Use Your Card Responsibly
Low APR Student Credit Cards can become a hassle in someone’s life when not used responsibly. Even with a low APR, fees due to over drafts and other penalties can quickly add up, causing the account holder financial strain. If at all possible, pay down your balance at the end of each month. If this is not an option for you, consider holding off on getting a Low APR Student Credit Card until you know that you will be financially able to handle it.
