Before You Apply for College Credit Cards
For many young people, their trip to college represents their first independence. For the first times in their lives, they are responsible to act as adults. They’ll live on their own, buy much of their own food, wake themselves up in the morning. And many of them will get their first experience with credit cards. Whether you’re a student wanting to dabble in the whole credit world, without getting in trouble, or whether you’re a parent wanting to help your student select a card that will not saddle them with too much debt, here is some advice to consider before filling out that application.
Because young people represent the future, college credit cards tend to come with all sorts of fringe benefits. The trick to selecting the best card, then, is to find the best interest rate available for you, in a card that offers incentives and rewards that you will actually take advantage of, and that will help you the most. It’s all well and good for a card to have numerous reward programs, but if they’re not incentives of value to you, then these incentives should not affect your decision.
Some examples: Some cards offer frequent flier miles. Are you a long way from home, and do you expect to fly back for several holidays during the year? Then this is a card you should consider. If you’re just an hour from home or if you take the bus everywhere, then frequent flier miles should not matter. A couple of cards we’re aware of offer discounts when you get gasoline. If you have any kind of car, in the day of $3.00-plus gas prices, this is an incentive you should think about. But of course, it’s unimportant if you don’t have a car. Some college credit cards will offer free merchandise. But is it merchandise you’d actually use? If not, don’t let it sway your decision.
You also need to think about what you will use your card for. If you expect to only use it for a couple of small purchases every few weeks, then the incentives that most college credit cards offer aren’t important; you’ll never qualify for most anyway.
One last bit of advice: Make sure you put aside money each week to pay off your card on time. One major purpose for you in getting a credit card should be to build up a strong credit score. You’ll only hurt this goal by paying your bills late.
Student credit cards.com @ March 7, 2008