As we get closer to summer and, as a result, many students are considering what expenses may arise when the fall semester of their college school year begins, this is a time where many often look at student credit cards and interest rates associated with these particular type of credit options, as there are students who use cards during college for a variety of purposes, but this does not always mean that a student card will be right for everyone. It goes without saying, students should compare current student credit card interest rates before selecting a card, but moreover, students need to reconsider why they want a student credit card and review the uses of this card which they may implement.
Student credit cards are currently averaging, here in the second week in June, to be around 13.99%, but students must understand that this may be an introductory rate and, depending on the card issuer a student works with, their rate may be higher or lower. Yet, comparing rates with a variety of financial institutions, and doing research into what these cards may require, like annual fees as an example, will also be a step in the right direction for students who feel that a credit card for college will be right for their particular situation.
However, students must examine why they are in need of a credit card or seek out this particular line of credit before making any moves when it comes to acquiring a credit card that is particularly tailored for college students. While new rules from the CARD Act may stop some students from getting these lines of credit, since proof of sufficient income or a cosigner will be required, students who plan to use their credit card for everyday purchases or to simply cover certain expenses like textbooks or other college related expenses may not have the best reasons for acquiring one of these cards, particularly if they are not incredibly responsible with their purchases and repayment habits.
Student credit cards for those who are in college are typically one of the common sources that have led to debt early in a student’s life and this can be a step back and a major hindrance for years to come if a student uses their credit card without caution, but student credit cards can be beneficial when it comes to building a good credit history while pursuing an education.
Yet, even the noble pursuit of improving a credit score and building a credit history can be marred with mistakes on the part of a cardholder which will lead to debt and financial problems that could last well beyond graduation. While students must make sure they can qualify for an affordable card with reasonable rates and terms, and this will require comparing numerous credit cards from a variety of lenders, students must also look at their financial practices, financial situation, and their ability to responsibly handle purchases on a credit card as prompt repayment will be necessary so that excessive spending does not overwhelm a student before they enter the workforce after school.