Many students go off to college and they are away from home for the first time and they have never had to worry about credit or anything like it. Then, they go to get a new cell phone or get gas or electric service for a rental home and they are denied or they are required to submit a large deposit. This can come as a shock and one way to get some credit is by getting a student credit card. Many people look at credit cards as a bad things, but most college students could benefit from having a card or two and using it responsibly. This will give the student the buying power that they need when they get out into the real world and want to do things like rent a home or get a new cell phone.
Luckily, there are a lot of great student credit cards out there. You don’t have to go crazy buying things to establish credit with these cards, either. Many people believe that your credit report will reflect the fact that the card is a student card and it won’t matter much that you have it, but this is not the case. If you have a credit card and you use it responsibly it will positively impact your credit score and earn you buying power, regardless of the fact that the card was geared toward students.
The benefit of applying for and using student credit cards is that they often offer much lower interest rates. If you are new to credit cards you should know that the interest rate on the card is something that is very important. When you get a student card you may be paying as little as eight percent interest but if you got a card with the same credit limit that was not geared toward students you may be paying more than 20% interest. Why does this matter? It matters because when you buy that book for your sociology course for $50 you would rather pay eight percent interest on it than 20% interest and this is even more true for those large ticket items that you may have such as car repair bills and the like.
College is the perfect time to begin building your credit. You’ll want to be careful of course, because too many people have ended up in trouble in the future when they are not careful in college, but this is the time when you will want to start using your credit cards wisely and building credit. After college you may want to buy a home or even buy a new car and the credit cards that you had in college will determine, in large part, whether or not you will qualify for the financing that you need. It’s never too early to begin building your credit up, and many of those who have a long credit history that helps them started in college. Why not take advantage of all of the offers that are out there and start building up your credit report?