Student Credit Cards

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A credit card is a plastic card that can be used to pay for goods and services without the cardholder having to pay precisely at that moment. It allows the cardholder to pay at a later date. A student credit card is simply a credit card that is tailored specifically for students. Student credit cards help build good credit, which is important when you want to get a loan or a mortgage. It also gives you direct access to a line of credit, and most companies offer rewards for a good GPA and will give you 1%-5% cash back on purchases. As long as you pay your bill on time, student credit cards can be a great asset to anyone in college or university.

Pros

  • Allows you to establish good credit early, which makes it easier later when taking out a loan or buying a house
  • There are many fantastic budgeting programs available to student credit card users, showing you exactly where you are spending your money
  • Provides flexibility when your cash supply is low or unavailable
  • Allows you to make secure purchases on the internet

Cons

  • It is easy to overspend, causing you to miss your monthly payments and rack up credit card debt, which can affect your credit rating negatively
  • Spending too much on a credit card can hurt the amount of cash you have in the future, as the more you spend the more you have to eventually pay back
  • Make sure you constantly check your statements to ensure no one is using your credit card for their own purchases; this is called fraud and is very common

Female Student Holding Credit Card

Uses

If managed correctly, a student credit card is incredibly helpful. It can be used when you need to pay a large sum at once, such as when buying textbooks. It also allows you to purchase items online. You may want to buy more expensive items, such as couches and chairs for dorm rooms or off-campus housing, with a credit card. It can also be used for groceries. It is important to remember, however, that everything you purchase with a credit card has to be paid back. If you do not have enough money at the time, you may want to think twice before you use your credit card to make the purchase. If it’s a question of “need”, having a credit card is very handy. If it’s a question of “want”, you may want to wait until you have enough money to pay for it up front.

Where to find them

Visa allows you to find the perfect student card to fit your needs. It allows you to pick a card provider if you so choose, and lists a bunch of different cards and the various rewards they provide. For example, the State Farm Student Visa Credit Card charges you no annual fee, provides a competitive rate and 24-hour online account access.

Capital One allows you to enter a “Card Lab”, where two types of student credit cards are available. The first is the Journey Student Rewards card, which also offers a $0 annual fee and 19.8% variable APR. It also gives you the option to earn cash back. The other option is the MTV Visa, which gives you 5 points per dollar spent on entertainment purchases.

Discover Student Center provides a “Student Center” which gives you all the information you need about different types of cards, a budget calculator, important information about credit, and information for parents. It also allows you to apply for a card, where it will help you determine the exact card you need.