It can be overwhelming for parents and college students when choosing good credit cards as they need to select the best student credit card rises. The best credit card shall depend on the student’s situation, needs, and expectations for the card, keeping in mind that the best credit card for one student might not be the same as the next.
Unlike the other cards, the student cards also have simple qualifying requirements, such as lower fees, fewer rewards, and benefits. In the long run, one of the benefits of a student credit card includes building a credit score that can help get a job or attain any financial goals.
Steps for choosing a student credit card
The first step is to check the credit scores. This step may not seem necessary for a student with no credit experience, but it is still advisable because a mistaken credit history could exist and decrease the credit score. Long credit history and a good mix of diverse types of credit tend to create a higher score, while a history of maxed-out credits generates a lower score.
Next, the student should do some research on the credit card. Here, there are four factors to consider. One such factor is the rate. As compared to other kinds of debts, credit cards have a higher interest rate. Card companies use rates to calculate the interest they charge if the holder doesn’t pay on time.
You should also consider fees as the cards may charge a variety of expenses such as annual fees, late payment fees, among others. It would be best if you also considered rewards like cash backs or points and co-branded cards.
The final step is to apply for the card. This application requires one to fill in personal information and be at least 18 years. If the student is the recommended age, they will need an adult cosigner or a source of income. Once submitted, the student’s approval takes a few days.
Options for Student Cards
Major companies issue these cards. They also come with a lot of rewards. They include Discover it, Chase Freedom, among others.
