When you are a college student, you have to consider many financial decisions, and having a good credit score is key if you want to rent an apartment or apply for a loan after graduation. The excellent idea is to have a college student credit card. Having a credit card is the perfect way to start building a credit score.
There are several college student credit card options, each providing different benefits for different kinds of students. The good news is that there are some cards that you may qualify with no credit history at all. You need to be at least 18 to apply and must have a reliable source of income.
Why It’s Important To Have A Credit Card
There are several advantages to having a college student credit card. First, it is a convenient method of making payments as they are safer to carry than cash, and most importantly, they help you build a credit rating as long as you keep up with your fees. It is essential to understand that using a credit card doesn’t immediately mean you will end up in debt.
There are other benefits of having a credit card, such as:
- Building your Credit Score
- Travel Insurance Coverage
- Reward Points
- Cash Back
Blanche can help find the best card for you. Check out our latest picks ➞
What’s A Credit Score?
A credit score is a number between 300-850 that represents a consumer’s creditworthiness. Please take note that the higher the score, the better borrower you are. This score is based on credit history, including the total amount of debt, repayment history, and the number of open accounts. The credit score primary purpose is to evaluate the odds that a person will repay loans responsibly.
What does APR mean?
APR the interest rate you pay represented over one year. It can help you understand how expensive a transaction will be. This rate is payed when a balance is carried over across statements. You won’t pay any interest if you pay off your ending balance each month by the due date. If the ending balance isn’t paid in full by the due date, you’ll pay the agreed-upon interest on your outstanding balance.
What does Cash Back mean?
Cash back is a reward for credit card users which refunds a small percentage (often 1 to 5%) of purchases on a card. Many credit cards will offer variable percentage cash back, depending on the type of purchase. It’s important to understand your spending as you apply for different credit cards, to optimize for the most cash back. Blanche can help find you the best cash back for your needs — chat anytime.
More Tips
Finally, before you decide which college student credit card to apply to, make sure to find the one that helps you save money and report to all three credit bureaus to help you build a credit score. Other things to consider are annual fees, interest rates, rewards, foreign transaction fees, and international acceptance.
If you have more questions, feel free to chat with Blanche anytime.