Credit 101: Student Credit Cards
Contributed by Caryn e Zent
Credit 101: Student Credit Cards
You're a freshman, and those student credit card offers start rolling in. Woo hoo! Everyone wants to offer you a credit card. Your eyes light up as you drool over what you can buy. In most cases, as long as you are a full-time student, you qualify for a card. Got income? It doesn't matter. The man behind the curtain (in this case the parents) can be counted on to bail you out of a tight spot.
As students tend to be loyal to their first credit-card issuer and will remain faithful after graduation, creditors love to give cards to students. Some student credit card issuers have exclusive marketing agreements with college campuses so they can aggressively go after student consumers. What does this mean to you? Credit! It can be good or bad, depending on how you use it. You can make your student credit card help you while avoiding common credit pitfalls. You can build your credit wisely.
How to Get the Best Student Credit Card
Isn't it great to be so popular? But try to restrain yourself and search for the best deal. Try sites like bankrate.com, cardratings.com, or studentcardpicks.com to find the best rates and features. These sites do the research for you and save precious time you need to spend "studying." Don't go with the first application that comes your way, as the card may have higher interest rates and penalties.
You might consider a card that offers cash back or other rewards, but research first how easy they are to redeem. Always read the fine print on credit card applications and agreements. If you have a question, ask the issuer. Make sure you know what you are getting into.
