Good Credit Cards for College Students
Good credit cards for college students
will keep costs low while still developing student credit. Look for a
blend of these two features when selecting the card that works for you.
It is also wise to look for added bonuses you can use in your specific
situation to reward good spending habits.
Avoid Prepaid Cards
Prepaid cards may appear to be a good option because they have
no interest rates. However, you will still pay a fee each time you add
funds to the card. Further, in return for this fee, you gain no
positive credit report. Since there is no actual loaning of funds in
this example, the credit card company will not report the debt to a
credit agency, and you will gain nothing from paying your card on
Choose Cards with Deferral Options
As a college student, you will likely fluctuate between
periods of work and study. On breaks and in the summer, you can earn
money with brief periods of employment. However, when you are in
school, it can be very hard to continue to make payments on a credit
card since you are not likely earning a large salary. In this case, a
good option is to elect a card with deferral options where no interest
is charged. Look for cards that allow you to defer payments in
six-month periods without any additional compounding of interest.
Gain Spending Rewards
Many banks and lenders offer specific student credit cards
that reward you where you need it most. For example, you can locate a
card that will give you cash for airline tickets, books or campus meal
plans. Look for a reward program focused on the items you need most.
You may find student cards can help pay for necessary expenditures
through these reward programs.
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