If you are a college student, acquiring a college or student credit card is the easiest way to build a good credit history. Perhaps you have seen credit card applications displayed around campus. The application process is very simple, and most people are approved. Although obtaining a credit card is perfect for proving credit worthiness, it is essential to responsibly manage credit. Advantages of a Student or College Credit Cards Aside from the obvious advantage of establishing credit history, student credit cards are ideal for basic purchases. For the most part, college students are strapped for cash. Hence, a college credit card may be used wisely to purchase semester books and pay for other unexpected expenses that arise. Furthermore, some college students obtain a student credit card to purchase an inexpensive used vehicle. On average, student credit cards have a low limit. Average credit limits are about $1,000. Credit card companies recognize that first time credit card users may become overly excited with seemingly "free money," thus, the limits are kept low. Low credit limits make student credit cards easier to manage. As you build credit, the credit card company will gradually increase your spending limit. How to Use Credit Wisely To avoid accumulating excessive debts, college students must resist the urge to buy whatever they want. In some instances, a college credit card company will approve students for a large credit limit. This is dangerous. Do not purchase items you cannot afford. By doing so, you will likely join millions of other people who are drowning in debt. Rule of thumb: payoff balances each month. This contributes to you remaining debt free. How to Apply for a Student Credit Card To get approved for a student credit card, college students must be employed. The application will request employer, income, school, and personal information. Moreover, the creditor will review your credit report. Prior to completing the application, you should read the terms of agreement. What is credit card's introductory rate? What will the rate be after the six month introductory period? Furthermore, what are the late fees, and is there an annual fee? |
