Which Credit Card Is Good For Students

Which Credit Card Is Good For Students - NEW YORK (MainStreet) -- Are credit cards good for college students? It must be said that yes. Sometimes. Like all of us, college students could use a nice boost to their credit scores and some reward points, but they need to be careful. College is pretty expensive, not adding 20% ​​APR to the picture.

For college students, building a solid credit score is quite a challenge. No credit can create nearly as many problems as bad credit when it comes time to get a car or starter home loan, and it can also challenge students who need to take private school loans.

Which Credit Card Is Good For Students

Graduates without credit, the "ghosts" in the word rely on, have an advantage over their classmates: they don't pay their freshmen's bill until they're 28. it gives credit to history, but in the wrong hands it can range from inappropriate and downright disastrous.

How Do Credit Cards Work?

Still, smart students can get a lot out of a good credit card. Certain tickets and expenses such as a home, which the student would buy with the money, can put on a credit card and be paid immediately. It's a great way to develop a story and build a relationship with companies that will make you eligible for more exciting rewards cards in the future.

If, as the director of financial aid at the University of Oregon, Jim Brooks said, students approach this new power acquisition wisely. Not many.

"Sometimes students use them to buy books and things like that, sometimes they use them for school-related expenses," he added. "But most of the time they're not. They use their credit card for more personal expenses, clothes and things like that... That's where the source of concern is. They're not there."

Graduate students, in particular, are dangerous consumer credit abusers due to a combination of presumption and low income. A student who suddenly has $5,000 in extra buying power can use it... and then have an incredible time paying for it with extra shifts at the local Jimmy Johns.

College Students And The Credit Card Crisis

Even a relatively low limit card can create real problems. Where an employed graduate may encounter four-figure debt with some difficult financial planning, this student can spell utter doom.

It's sometimes painful, Brooks said, to see students go to their financial aid office with rock bottom credit card debt.

"We see students come in and basically say, 'I need more money because I have these bills to pay,'" Rivers said. and I have this bill and I don't have that money.''

There is no help for these students. That bill will grow, or your parents will step in... or you'll learn something about failure at a young age.

How Your Credit Score Impacts Your Financial Future

However, students who can manage their schedule responsibly can reap immense benefits. These days, it comes with ever-increasing student expenses, from books to tuition fees and semesters. Even more and more landlords are embracing plastic, as the student slums many of us remember are retreating to skyscrapers and luxury apartment rentals.

Charging and paying for everyday life can help build a high credit score and even rack up some points to help pay for a decent graduate trip.

Matt Goldman of Wallaby Financial suggested some tips for students to remember when choosing a paper to start with.

First, he said, "you want to start something like a student credit card." You want to avoid low credit / bad credit. Under these different signs. "

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Credit cards for people with poor credit are designed to accommodate the risk of default, so they come with high fees and few (if any) rewards. They couldn't even help your faith much, like those who were already destined for rock bottom.

“There's no reason, as a student, you can't have a card with good rewards and low APRs,” Goldman said. "Because you are a student and a graduate does not want to give the benefits that a credit card can offer high-end customers."

As someone else suggested, students should consider their own lifestyle. Someone who is studying abroad, for example, can consider cards like Travel Capital, which do not have foreign transaction fees. Others who want a management account consider this for students, which pays 5% in cash but is distributed in categories.

Students should also consider whether they want to establish a relationship with certain banks, and especially avoid the annual fee.

How Do Credit Cards Work? A Beginner's Guide

When it comes to the dangers of abuse, Goldman agrees with Brooks that students can work hard and "need to be careful."

"It's a big part of life here in the United States," he said. "This is the time in life when you need to know that you are a good shooter."

Finally, Brooks, for the author's use, is well-rounded. The danger with a credit card is the temptation to buy things you can't afford. But with so many options available, it's hard to see past the crowd and know which credit card will work best for you. Knowing what to look for in a credit card can make this decision easier.

Kudos' personal card research tool helps you earn $750 a year by finding the best card for you based on how you spend and the cards you already have in your wallet.

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Getting your first credit card won't be intimidating once you know where to look. With the right criteria in mind and a card that matches, you have no problem finding the best card for you.

There are four factors to consider when choosing your first credit card as a young adult.

Your ideal credit card should make it easy for you to qualify for an advance, loan, or mortgage at some point in the future.

No matter how much you think you need it, it's always good to work on your profane faith.

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Your credit score helps lenders understand your financial behavior, and they can use this information to estimate how likely you are to repay the loan.

Without your credit history, it has nothing to do with the property, and it's very difficult to do when you need to make a purchase, whether it's your first car, your first house, or anything else.

Expect a credit card issuer that reports to all three major credit bureaus and offers a higher credit limit after a certain period of time.

College students tend to stick with low-cost, high-value cards. Not only can this help you get the best return, but it also makes a plan to build solid credit. Here are the main things you might want to look at;

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The annual fee can play a large part in the value of the card. The APR is actually the total amount you pay each year, in this case credited to your account.

APRs are not the same as interest. The interest rate is only considered to be the primary one in use, but excludes any additional charges that may be imposed.

Many credit card companies offer high APRs. You want to avoid them, especially when it's your first credit card.

APRs are usually much lower for people with excellent credit. As you build your credit, lower your APR. The closer you are to a perfect credit score, the less credit you will pay on your loan.

How To Get A Student Credit Card

An annual fee must be paid once a year for the right to use the card. Not all credit cards have an annual fee, and the ones that do can range from about $50/year to over $500/year!

The best student cards should come with no annual fees – unless the benefits or rewards are worth more than what you pay out of pocket.

If you get $300 in travel rewards, the $200 annual fee is probably worth it. But, if you only accumulate $150 or less in rewards, you're better off with a no rewards, no fees card.

While early credit cards may not offer the highest perks, they can still offer some benefits that can save you a lot of money, like no foreign traffic, for example.

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Many credit cards offer some rewards and perks. These are usually in the form of points or miles on hotels.

Unless you're an international student who often flies home during the holidays, you'll probably find that it's more expensive to have a card that isn't just right.

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