Acquiring your 1st credit card is a huge first step, similar to getting your driver's license for the 1st time. Because you are just beginning with credit, it's sensible to select a credit card that caters to your credit experience. A student credit card is among the better options for younger folks getting going with credit. Here's 7 steps you should follow when choosing a student credit card.
>>>> 1...Can somebody with nil or no credit be approved?
Because you do not have a lot of experience with credit, you should apply for a card that will approve your limited history.
>>>> 2...What's their credit limit?
When you are beginning, a lower credit limit is better to teach you how not to charge excessively. A credit limit that's likewise high makes it real easy for you to charge up more than you can really afford to spend, which can lead to a lot of debt.
>>>> 3... What interest rate are they charging you?
A lower rate of interest is more beneficial since you'll wind up paying less for carrying a balance on your credit card. To begin with, you might not be capable of getting the lowest rates because creditors save those rates those for customers with really good credit. If your rate of interest is high, over 14% and particularly in the 20%'s, pay your balance off each month to avoid high finance charges.
>>>> 4...Is it Free to use or what's the annual fee?
Ideally, you should pick out a student credit card that does not require you to pay a yearly fee. There are a lot of cards that do not charge yearly fees, so if you find one that does, keep searching. A few credit card companies forgo the fee if you make a purchase within a 12-month period. This kind is satisfactory as long as you buy something at least once a year.
>>>> 5... Will they charge other fees?
Make certain you completely understand their fee structure and when you will get billed. Just about all cards charge late fees and over limit fees. Keep away from cards with unjust fees, like an account maintenance fee.
>>>> 6...Do they require a cosigner?
Owning a card that's simply your card will assist you in buying more responsibly. If you have a cosigner you run the chance of overlooking your card since you know your parents or co-signer will pay the bill. Not only that, when you are late on making a payment, it will impact your cosigner's credit history too.
>>>> 7... Does the credit card company offer rewards?
Having rewards on your student credit card is an extra bonus. If you find a excellent card that doesn't offer rewards don't pass it up. Then again, if you find a good card that does offer rewards, that's even more favorable. Be mindful that you do not misuse your credit card simply to get a lot more rewards.
Just remember to READ the fine print...Be wary of cards that off 0 % for 6 months and after that charge up to 29% interest. Just take your time and compare cards.