If you are about to join college for higher education, you may be worried about how to manage finances effectively while you are studying even with a few financial resources. There are several ways to manage finances as a college student and applying for a credit card could be one of them. In some situations, you don’t have to apply for one as a college student. But a student credit card can offer several benefits like building credit history, managing finances effectively, affording emergency costs, and most importantly earning valuable perks to save bucks and get more in less while shopping.
Basically, such cards are designed for people age 18 to 21 who don’t have good credit and looking for ways to meet their education-related financial needs. In this article, we will let you know how you can choose the right credit card to manage personal finances and build good credit without getting into debt.
Decide what feature is best for you
Deciding what feature/benefit is most important to you is the first thing you should consider when about to apply for a credit card. Since such credit cards are specifically designed for first-time card users, they come with a lot of exciting offers and perks. Some come with introductory rewards offers that help cardholders earn rewards or cashback, and some come with interest free credit card feature to help you save a lot of bucks on monthly payments. That’s why consider what benefit will work well for you and then choose a card accordingly.
Choose a Card with No Annual Fee
A good credit card wouldn’t charge an annual fee. So, always get a card that has no annual fee as it can help you save a lot of bucks on your student budget that you can spend on other useful things. Some credit card providers offer exciting perks but they charge an annual fee at the end of the year. That’s why make sure to go through terms and conditions carefully and skip the option if there is an annual fee as it can cause a huge credit card debt instead of building good credit.
Check for Available Rewards
A credit card is one of the best ways for students to manage their finances as they usually come with exciting rewards and offers. For instance, some cards offer users cashback based on the amount of money spent on a purchase or online payment. Some cards come with free rewards points that a user can redeem later on specific products or services to save bucks while buying desired stuff. Remember to check the list of offered perks and benefits before you sign up for a student credit card as it can help you make the right choice.
Choose a Credit Card that Reports to all Major Credit Bureaus
The core purpose of using a student credit card is to build good credit history. And if your credit card is not properly reporting to all major credit authorities and bureaus, you are wasting your time. That’s why professionals always recommend getting a credit card that sends reports to credit bureaus as it helps you get your credit reports updated on a regular basis so you can build good credit. As a result, you will be able to easily apply for other loans or credits in near future. It can also help you buy your home by qualifying for a home loan.
No Foreign Transaction Fees
As a student, you may need to make some transactions in foreign currencies. And a card with a foreign transaction fee can cost you a lot of bucks along with the transaction payment amount. Whether you need to make overseas transactions in near future or planning to study abroad, you should apply for a credit card with no foreign transaction fees so you will be able to save many bucks while building good credit and managing your finances as a student.