Tips on Picking a Good Student Credit Card

Credit cards have become the preferred choice for making payments, paying of loans, transferring or consolidating loans, etc. Adults as well as students can benefit from these cards. The adults generally have the financial security to experiment with a few cards before picking the one that suits them the most. But as a student, you may not have this privilege. You must make all attempts to get the best card compatible with your needs in the first attempt so that you don’t have to worry about it during your studies. After all, a credit card is supposed to make your life simpler not tougher. So what should you look for in a credit card company?

• Interest Rates
  The most important aspect in any credit card is the Annual Percentage Rate (APR). This is the interest that you would have to pay on your purchases on the credit card in annual terms. Obviously a lower interest rate is preferable. Hence hunt for cards with low APR. A higher APR could mean that you are expected to pay higher interests which can be financially taxing for you.
• Charges
  Many cards actually have an annual charge, an amount you have to pay the credit card company for providing you that service. Pick the ones with lower or zero annual charge. Other charges include late payment fees. This is extremely important and is typically very steep with almost all credit card companies. These fees could transform your credit card from a financial convenience to a financial crisis. Late payment not only affects you financially, but also messes up your credit history. An excellent way to avoid them is to avoid late payment. Lastly, your over limit fees. Make sure what the credit limit on your card is, and stick to it. If you are careless, you will exceed your limit and that can attract more fines and interests. These are avoidable expenses so you must avoid them.
• Introductory Offers
  Most credit card companies come up with dream offers. You would have very low APRs or even 0% APR, no annual charge, etc. Don’t pick the card based on the introductory offer alone. Make sure that you look at the duration of the offer and the charges after the offer. A sweeter introductory offer doesn’t always translate to a sweet credit card scheme after the offer period – hence the longer the offer period the better. Typically this offer period lasts for 3-6 months or even a year.
• Grace Period
  This is an important aspect of your credit card. The grace period is the interest free period during which you can repay the money spent with the card without any interest. In short, if you repay in the grace period, your credit card is literally your plastic money. The longer the grace period the longer you have to repay the bill with no additional charge, hence preferable.
• Reward Points
  Many credit card schemes have reward points associated with them. This is probably the only aspect where you don’t have to be cautious while picking the scheme. You just need to maximize your benefits with this clause. Hence, it is also a criterion that you must consider after some of the others mentioned above. Some cards may give you points that you can redeem at your favorite store or purchase something that you like, prefer such cards over others.

Lastly, always read the fine print before signing up for any card. If you can’t understand, then ask for help. But make sure that you are aware of all the terms and conditions before you enroll for a credit card. Also keep track of what you spend and pay off your bills quickly. Most credit card companies support online banking facilities to aid you in these steps.