These days it doesn’t seem like it takes much to qualify for a credit card. With so many different credit cards out there almost anyone can qualify for credit; even students. In fact students have become a highly targeted group to sell credit cards to because they are the easiest targets. What better group of people to target than those who are broke and looking for money? Yes, getting a credit card if you are a student can be all too easy. So here is some information on getting student credit cards to help you decide if getting one is the right thing for you to do.
Where to look & who to talk to
There are many different places to look for credit cards. You can search by credit card companies; the four major credit providers are Visa, MasterCard, American Express, and Discover. And you can also look to your bank or a local bank in your town or city. Sometimes banks can offer different rates than the credit card companies themselves. Talk with different banks, credit card companies, friends, lenders, any pretty much anyone you know that has a credit card. Any advice can help you make a better decision.
Knowing your credit limit
Some students make terrible mistakes when they get student credit cards by getting cards that have much more of a spending limit than they will ever be able to repay. They usually end up in a pile of unwanted debt and a future of bad credit because they can’t get out of it. Don’t make the same mistake that other students have made before you. Make sure when you find the credit card of your choice that it doesn’t exceed what you know you can pay on it. Just because a credit card company or bank qualifies you for a ten thousand dollar limit (which is very unusual for a student credit card) doesn’t mean you have to take it. If you need it for an emergency then $1000 usually covers it. You want to use this credit card to help build good credit history; not throw it down the kisser.
Advantages to owning a student credit card
1. Convenience- Today’s world is becoming very “plastic.” Or in other words you need a credit card to do almost anything. As a student convenience can make a world of difference. Credit cards make it easier to pay for things online, and easier to make those airline reservations and hotel reservations for Spring break. Credit cards give you all the convenience of cash but can carry it neatly in your wallet or even on a key chain.
2. Emergencies- Living the life of a student you’re bound to run into an emergency or two. Sometimes tuitions and books end up costing more than you think, or you do something really dumb and have to visit the emergency room. A credit card can help out in situations where you’re short on cash. Don’t however get so use to using it that it becomes something you use for all your purchases.
3. Building credit- Student credit cards can truly prepare you for the future if you use them wisely and prudently. Student credit cards are given so that students can begin to build their credit history in the hopes that later down the road they can use it for larger purchases; like buying a home. If you pay the balance regularly you can do just that. If you don’t however, student credit cards can eat you alive and ruin your chances of every qualifying for a home.
So, getting a credit card if you are a student can sound like a great thing but there are a lot of factors to consider. Make sure you do your homework and figure out of it’s the right choice for you.