How to Get a Student Credit Card

After your 18th birthday, you will be barraged with advertisements for credit cards. It can be hard to pick the right one, and it can also be hard to understand how the interest rates work. It can be a good financial learning process for students to get their first credit card, and also learn fiscal responsibility.

Difficulty: Easy

Instructions

1. 
    

   There are several credit cards specifically geared towards students, and you'll want to get reviews of many of them before you sign up. Check the web for student credit card applications. Check out the bonuses associated with each credit card, like getting points for spending on certain things. Think about where you'll use your credit and try to find one that rewards you for that.

2. 
    

   Understand the interest rates. This is the most important part. Make sure you get a free student credit card that doesn't have any annual fee. Then, look at credit cards with the lowest interest rates. Interest is going to be charged on any unpaid balance so you want to make sure that the interest rate is no more than %15.

3. Avoid the credit card applications that come in the mail as they are rarely the best deal for you and it pays to shop around online. Again, look at bonus plans for the different cards out there by internet comparison. Most sites list about 5 or 6 of the cards details right next to each one.

4. 
    
   Student Credit Cards Through Citi and Discover

   Look for a 0% annual yield and a trial student period. Citi, Discover and Capital One have shown to have the best ratings for student credit cards with no annual fee.

Tips & Warnings

• Make sure as a new credit card owner that you stay out of debt. This can adversely affect your credit rating down the line and can cost you steep bills in interest.
• After interest rates and annual fees, the best student credit card depends on who you are.
• A new credit card can seem glamorous but understand that whatever you spend now, you will have to pay back that later, and then some with interest so try to pay off your monthly balance every time you get your bill. This will increase your credit score and increase your credit limit.

Resources

• How to get rid of a bad credit rating
• How to get a free credit history report

[pep1player]

on 5/29/2009 Wonderful article

[starlet67]

on 5/28/2009 Helpful info for getting a student credit card!5*