Student Credit Cards

Simply being a college student doesn’t mean you’re eligible for a “student” card. You must have some income to apply for a student credit card. You might face difficulties in getting approval for the student-specific card if your credit score is shaky or you have  no credit history at all. Sometimes lenders will allow  to deposit some cash in your account as collateral in order for them to give a credit card to a student. The deposit protects the issuer in case you fail to pay your bill, reducing your chances of not getting approval for student credit card. Here are some benefits of student credit card. 1) Interest free financing – If you’ve student credit card, you can enjoy short term and interest free financing i.e., you can buy anything at zero percent interest rate. 2) Reward points – Student credit cards offer more reward points in comparison to other credit cards. You can redeem these reward points for discounts, cashback, free trip, and more. 3) Good credit history – A student card is prefect to build a good credit history. Maintaining a good credit score can help you with future loans, renting your own apartment and getting low insurance premiums. 4) Helps you in getting your first job – According to the Society for Human Resource Management, “Approximately, half of the employers conduct background credit checks on potential hires.” Maintaining a good credit score through student specific card will help you in getting your first job. The best bosses actually teach their college interns this and help them establish good credit and personal financial habits since they are so crucial to a successful careers.

If you’ve a student credit card, just make sure of the following points. 1. If you want to maintain a good credit score, you must make your payments on time. One missed payment can drop your score, and it can take months to recoup. So make sure to pay on time. 2. Pay out full. Use your student credit card to build your credit score rather than using it as a loan, use it to build credit. This will keep you away from incurring excessive interest charges. 3. Make sure to purchase something through your credit card every month. This will you’re your account active and allows you to build a history. 4. If you don’t misuse your card and pay out full every month, you may be ready for using rewards. Paying out full every month helps you earn more cash back or reward points. full each month. Make sure to check convenience fees as some credit card companies charge higher convenience fee.