Many students have little experience with using credit cards, so applying for one will help you build a positive credit history and receive other important benefits.
Choosing your first credit card: best college options
Not all students use cards preferring cash instead so they miss the multiple benefits they bring. From paying off the loan to discounts on groceries or dining out, there are many advantages in choosing one. The key reason for getting a card is to start building a history that will allow you getting money easier and with a lower percentage rate.
Managing your bills timely will show banks that you know what to do with your money and do it responsibly. Owing a credit card means you can pay anytime and anywhere which is not only very convenient but also lets you track all your expenses.
Choosing a credit card wisely
Have you ever ordered an essay when you lacked the time to complete it yourself? Different essays websites reviews placed on topessayservices.com give you plenty of options to choose the service and any of them requires payment made with a card. It becomes one of many reasons to get one, you just need to look for specific factors to make the right choice:
- No yearly fee. Some specific cards can earn for their owners different perks and the cardholders may pay a fixed yearly fee. Cards for students don`t offer such rewards, so they should not require annual payments;
- No extra fees. Some cards charge additional fees for transactions in a different currency (around 3% of the purchase cost). If you have plans to study abroad or just like buying stuff on the web, consider companies that don`t charge them;
- Bonuses. Some cards may add bonuses for receiving good grades and high academic performance. Others may offer you a lower percentage for making several online payments in a row. Check your options before choosing a card;
- Online tools. Companies may offer you monitoring tools to control your expenses and be able to manage your finances in time. This feature may become very helpful and let you track your progress of building a good credit score.
Right now there are certain leaders on the cards market that can offer students decent conditions and bonuses:
- Deserve EDU. This option is valuable for those students who like shopping at Amazon as it offers a $59 yearly Amazon Prime subscription. There is no yearly fee or extra for other countries` transactions, it gives 1% cashback with no limits for shopping and is targeted at those users who have no scores or previous credit history. It can become a great first experience if you have never dealt with credit cards before;
- The Petal. This one is not specifically designed for students so it differs from typical student offers. However, it is created for people who only start using a service and have no scores (which is you, a poor student) so you can make use of its benefits as well. It gives you up to 1,5% cashback (with 10% for selected merchants), no fees basically charged by other cards, Uber credits and money limits from $500 reaching $10 000 range;
- Citi Rewards+. The name speaks for itself: the card offers bonuses for shopping in supermarkets and constant purchases at the gas stations (10% bonus), 0% APR and sign-up rewards ($25 gift card). There are no yearly fees and it is perfect for those who tend to pay with a credit card for all supermarket purchases (as it allows saving great bonuses).
Banks are well aware of the fact that the majority of students have no money so they try to give as many concessions as possible. With its help, you can receive the money urgently, rent an apartment, set up utilities, get hired or even establish your business. However, don`t expect that your first card will come with a good credit limit.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes