Before You Apply for a Student Credit Card
While you are a student, the only way to make ends meet may be through the use of a credit card. However, before you indulge in the business or charging, there are three things that you should know about student credit cards.
APRs Vary. APRs are the cost of borrowing money. Though many credit card companies are more than willing to give you credit, that credit comes with a price. To save yourself money, you will want to choose a card that has low rates. Many student credit cards have a zero percent APR. These are definitely the types of cards you want. If you already have a card and you are not sure what the APR is, check the bottom of your credit card statement. If the rate is high, try negotiating a lower rate with the credit card company.
- f the company is not willing to negotiate, try moving your debt to a credit card with lower rates (and no annual fees).
- Credit Cards Have Bonuses. Some student credit cards offer cash-back bonuses on purchases, such as gas and food. These are great credit cards for students, because you actually make money when you charge items, especially if you pay off the balance promptly. Other student credit cards offer air travel rewards based upon a point system. These type of rewards can come in very handy when you want to visit home, take a vacation, etc.
- Your Credit Score is Important. Your credit score is a three-digit number that appears on your credit report. The higher your credit score is, the better your chance will be of getting student credit cards with low interest rates. If you need to find out what your credit score is, you can get a free credit report online.
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