Student Credit Cards: What You Should Know
by: Tom Tessin

Credit cards can be a tricky industry, especially when you’re new to the game.  There are so many terms and condition, horror stories, and bad things you’ve heard about them, it makes your head spin.  When it comes down to applying for a student credit card, there are a few things you should know.

When you’re looking for a student credit card, it’s not too hard to find a credit card company that’s willing to sign up.  If you’ve been on the college campus for quite some time now, you have probably realized that they will do just about anything to get you to sign up.  From free t-shirts to mugs, they have it all.  The only bad part about signing up at a booth is that you’re not familiar with the brand and you have no idea what they have to offer.  The best thing to do is research your credit cards online, so that you know what you’re getting yourself into.

Credit card companies make a majority of their money from fees.  The thing with student credit cards is that you will find that your spending limit will usually be very low.  Your range can be anywhere from $300 to $1,000 depending on your situation.  The credit card companies are hoping that you pile up the purchases so quick that you go over your spending limit.  Once you go over your spending limit, you will find yourself paying a hefty over spending fee.  It’s important that you tally your purchases every time you make one because they do pile up quick.

When you sign up for your card, you will notice that the companies are willing to give you an introductory rate on your purchases.  This is usually 0% for about 6 months.  After the 6 months, your rate will go up.  It’s up to your to read the terms and conditions to see exactly what your rate is going to be.  Remember, that the rate will be applied to your balance that you don’t pay off in full.  You can only imagine how quick that would add up if you have a bill around the thousand dollar mark.

An important thing you must know when using your credit card is that you review your bill fully each month.  With fraud in today’s world, it’s easy for someone to steal your identity and make purchases.  Sometimes these purchases can be as small as a few dollars.  These purchases shouldn’t be paid by you.  You’re not responsible for purchases you didn’t make.  Whether you pay your bill online or by mail, it’s important that you check.

If you don’t have a student credit card yet, it’s extremely important that you’re responsible with it.  If you make careless mistakes while you’re young, you will pay for it in the long run, especially if it tarnishes your credit history.  The tips we mentioned above are just a few that you should pay attention to.  It’s your responsibility to read your terms and conditions when applying.