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Choosing the Perfect Student Credit Card

For every college or graduate student, it is essential that they learn proper money management before going out and getting a student credit card. They can be very useful tools for emergencies or every day use when used correctly.

The great thing about being a student is that they can start fresh with their credit scores and help build a good credit rating, saving them tons of money in the future. Excellent credit scores make it easier to obtain a car loan, mortgage, or another credit card in the future while also paying less interest fees. People who have very good credit scores also have bargaining power over interest rates as well, making it in the best interest of the student to pay on time and to be responsible with their card.

When applying for a student credit card, the card application will usually ask for identification, a tuition bill or some sort of proof that you are a student. The best limit on a student card should be around £500 or an amount the student knows he can pay off if it were to get maxed out accidentally. Identify theft or a night out on the town with their mates can have a big impact on student credit cards, so it is important that they stay on top of it and know their financial limit.

The prefect student card should have no annual fees, a 0% APY (Annual percentage yield) or a balance transfer period for special offers, cash back rewards, trial usage periods, and other benefits to help give incentives to the student for excellent card use. What is currently advertised as student credit cards might be promoted for only college students but typically any type of student can apply for them. Cards that are ideal for college and graduate students are credit cards that do not require a minimum income or need a co-signer.

Credit cards are a huge responsibility and it is good for students to start young, learn what it is like to be financially responsible, and to be on top of their own funds without relying on others such as parents or guardians to pay for their debt. It can be a very rewarding process to know that the student is in the process from coming out of childhood and into adulthood with their money in their own hands.