Tue. May 28th, 2024

Acquiring a credit card is a huge achievement for any college student. It is also the beginning of a financial management journey. The first credit card will define your financial health in college and history throughout your life. 

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Many companies provide credit cards to students. Students can also acquire these credit cards or live without one. Making the right decision at the beginning will affect your credit history and financial management practices going forward. Here are issues to consider before getting a credit card as a student. 

Personal finances 

How are your finances? Are you a good manager, or will you get into unwarranted debts? Are you making money while in college? If you can get a do my English assignment helper online, you can create more time to start a business that makes money or take a part-time job. 

The credit you get through the card has to be repaid within a set time. Failure to repay the credit will attract penalties and hefty interest. If you cannot manage credit, the card will damage your financial records forever. Only obtain a credit card when you can manage your finances and repay the credit you have obtained. 

Transaction fees

Transaction costs accumulate in substantial amounts over time. The card will attract charges whenever you use it at a store. Read through the fine print to determine how much you will pay whenever you transact with the card. 

Some charges are indicated in percentages, while others are in specific figures. For instance, you may be required to make an annual subscription. Particular stores may be free for some cards and charged for others. Such details will determine your eventual expenditure when using the cards. The calculations help you to determine the cost of owning and using the card. 

Annual percentage Rates

Some cards offer high rates, up to double digits. Your rates increase when the balance is not paid every month or within the agreed intervals. Such increases in APR will make it difficult for you to pay your debts. 

Your spending habits and cash flow will determine the type of card you acquire. If you wish to carry forward the credit as you await a huge deposit, it is advisable to go with a card that offers low rates. While the rates do not appear significant on the face, the penalties will be huge based on your credit repayment behavior. 

Requirements during application 

Each credit card provider has unique requirements for students. The requirements depend on your financial history, limits, and the terms you would like to subscribe to. Most card providers insist on holders being 18 years and above. You will also be required to possess a Social Security number. 

A card owner should have his source of income. If you do not have a constant source, a cosigner with reliable cash flow becomes your guarantor. You must have a current college student status when applying and to continue operating the card. Proof of student status will be required alongside the expected graduation date. However, some card issuers are lenient and may approve your application without proof of student status. 

Rewards 

What are the benefits of owning one card over the other? Consider the places you can use the card and the bonuses you get as a result. The cards also provide items and places against which you can redeem the points accumulated. Most of these cards allow you to redeem points in hotels, rental cars, accommodation, and flights, among others. 

Cashback is also a reward system used by many credit cards. The secret is to find a card with rewards that you use. For instance, if you rarely fly, yet the card offers flight bonuses, it might not be for your class. Choose a card that allows you to pay school fees or buy textbooks from the bonuses. 

Holder categorization 

Cards come in categories. They may be labeled platinum, gold, diamond, or other categories. Pick a category that will meet your needs. 

The categories denote the credit limits you can get and the places you can use the card. Choose a card that will help you to meet your financial and credit needs. It is especially important to get the right limits and a chance to repay the credit at convenient intervals without punitive penalties. 

Status after graduation

How do you transition from a student’s credit card to that of an ordinary person? Choose a card provider who offers a decent future beyond college days. The terms will help you to transition seamlessly, including carrying along your history and benefits. Also, you can click here and check helpful sources for students. 

Many credit card providers offer very attractive packages. However, the details in these packages will determine the card’s convenience. Choose a credit card that will serve your current student credit needs and offer a seamless transition into the future.