How to Choose a Student Credit Card
Being a student is an incredibly exciting time. Hopefully, it will prove to be a valuable, fun and rewarding experience. It can also be a time that is challenging when it comes to managing your finances. And particularly if you do not have much experience in doing this beforehand. It is for this reason why it can be an intelligent idea to have a credit card for emergency situations. But this can be a difficult decision so read on for a few tips.
Why Do I Need a Credit Card?
Having a credit card as a student can be very handy as there are many expenses that are attached to attending university. Having access to credit can be helpful for those times that you are running low on your student loan. Or if there is a sudden unexpected cost, such as a trip away or a visit home that you need to fund. Additionally, using a credit card can be an effective way to build your credit score. Which can be helpful later in life.
What to Look For
Credit is not usually available to those that are under 18. So you will need to apply for a student credit card which is likely to have a lower credit limit and higher interest rates to start with. The key things to look out for include the APR (annual percentage rate). Charges for late-payments and annual fees, minimum payment due dates and when is the interest charged from. There are many good online bank accounts like Thinkmoney. Which provide you easy access to credit and can allow you to control your budget for the term.
How to Manage a Student Credit Card
It can be daunting to start using a credit card for the first time and there are a few important tips to follow. First, you must always pay your bills on time and you can do this by setting up a direct debit. You should also keep in mind that it is not really your money until it is paid off. And you should avoid taking out cash from an ATM with your credit card. You should also stick with just one card. Avoid making multiple applications in a short space of time (this will make it look like you are desperate to lenders).
Having a credit card while you are a student can be immensely helpful. Plus it is also smart to educate yourself on how to use credit and improve your credit rating. It is important that you take the time to find the right student credit card and to make sure that you fully understand how it works before you start spending. But once you have the hang of this you should find it very useful during your studies.