Student credit card is a great first step to establishing a good credit history. Building good credit may not seem like a priority when you’re in school, but you’ll need it if you want to fund a car, buy a home or qualify for the best credit card offers. Your credit could even affect your job prospects and ability to rent an apartment.
In the previous post, Infocreditfree.com introduces people to some of the necessary information that is useful for getting the consumer loan online to get more information people can read the article Consumer loan online may be secured or unsecured loans. Now, let find knowledge about the student credit card in the post today.
STUDENT CREDIT CARD
Just like a lot of article posts about land loans, apply for credit, Public service loan forgiveness, free credit card, mortgage application…. this post about the student credit card also includes some main parts. They are:
1. Who should apply for student credit card?
Student status may (or may not) be important. Check the card’s terms and conditions on the publisher’s website for application validity. For example: Rewards for students Journey from Capital One do not have a clear student requirement, while the rules for Discover it Student Cash Back say “You must be a college student”.
Federal law limits people who can accept credit cards under the age of 21. The issuer is prohibited from providing the card to a person under the age of 21 unless they have proof of independent income or a co-signer – a person who agrees to be responsible for the debt if the primary cardholder cannot pay. single. This can be a barrier as most major credit card issuers do not allow co-signers.
People age 21 and older are also required to provide proof of income. However, they can list any income for which they have reasonable access expectations.
Bad credit is usually a deal. Student credit cards are designed for people with little or no credit history. If you have bad credit because of missed payments or other mistakes, you probably won the qualification for a student ID card of your own. In that case, look for a card designed specifically for people with bad credit.
2. How to choose the best student credit cards?
Credit report
The student credit card must report to all three credit bureaus: TransUnion, Experian and Equifax. Three companies collect information used to calculate credit scores. That is why you want your good payment history to be recorded by all of them. All our recommended student cards report to all three offices, with the exception of the Deserve Edu Mastercard for Students, indicating they report to Experian and TransUnion.
Annual fee
It is ideal to avoid an annual fee when you have a student budget. In addition to keeping your costs low, the annual no-charge card makes it easy to open an account once you build enough credit to move to a better credit card. If there’s no annual fee, you can keep your original credit card open to maintain the length of your credit history and benefit your credit score.
Referral and continuous interest
Cards designed for newcomers often have higher interest rates, so it’s best to pay your full bill each month, which allows you to avoid paying interest altogether. However, some student IDs provide you with a 0% referral interest period, which can be helpful if you have a large purchase, you will need a few months to pay.
Reward
If you hope to earn points or refunds for your spending, look for a card with a reward rate of at least 1%. Some student credit cards are more generous, but 1% is a decent rate for a starting card. You will get more value if you choose a card with a reward that fits your spending. Some cards also offer a registration bonus. These offers can potentially surpass your college costs, but only if you don’t overspend to earn them. If you choose a student credit card with a reward, use it only for transactions you have made within your budget.
Foreign transaction fee
A foreign transaction fee is an additional charge when a purchase is made overseas, usually 1% to 3% of the total amount of a transaction. That can seriously affect your student budget if you spend a full semester in the study abroad program. If you plan to travel outside the United States, look for a student credit card that does not charge foreign transaction fees. Some issuers, including Discover and Capital One, do not charge these fees for any of their cards.
Internationally accepted
Another consideration when studying abroad is how easily you can use your credit card. Visa and Mastercard are widely accepted around the world, but American Express and especially Discover are less so.
Security deposit (for secured cards)
If you have difficulty qualifying for a student credit card, consider a security card. These cards require a secure deposit, usually equal to your credit limit. Minimum deposit requirements tend to be between $ 200 and $ 300, but some can add up to $ 500. Pulling in deposits can be an obstacle to student income, so you may have to save the most or ask someone for help. You get your deposit back when you close your account in good standing or upgrade to regular Cameron credit card with the same issuer.
3. Some best student credit card for you choose
| Card | Our pick for … | Key benefits |
|---|---|---|
| Discover it Student Cash Back | Cash-back rewards | • 5% cash back in rotating categories, on up to $1,500 per quarter in spending • 1% cash back on all other purchases • $20 annual statement credit available for good grades |
| Deserve Edu Mastercard for Students | No credit history and international students | • 1% cash back on all purchases |
| Journey Student Rewards from Capital One | Incentives for responsible use | • 1% cash back on all purchases • 1.25% cash back for any montha |
| Discover it Student chrome | Gas and restaurant rewards | • 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases/quarter • 1% cash back on all other purchases • $20 annual statement credit available for good grades |
| Citi Rewards Student Card | Big rewards on small purchases | • 2 points per dollar spent at gas stations and supermarkets on up to $6,000 in combined spending per year. • 1% cash back on all other purchases • Rewards on all purchases round up to the nearest 10 points |
| Capital One Secured Mastercard | Secured card | • Potential access to a higher credit line without additional deposit after making first five monthly payments on time. • Reports to all three credit bureaus |
| State Farm Student Visa Credit Card | Limited credit | • 3 points/$1 spent on insurance premiums. • 1 point/$2 spent on other purchases |
This post is information about student credit cards in the USA. Also if you are looking for information about bad student loans in Australia, you should read the article Five tips to choose the best student loan in Australia from Loansaustralia.net.
In addition, if you are looking for student loans in New Zealand. you should the article To get student loans NZ you need to meet some requirements from Loansnz.net.
Hillary (Team Content) – Student credit card