Credit Cards for College Students
By: Anne Durrell
Ideal for Building Credit
There are many credit cards for college students that actively help to build credit. This is perfect for anyone new to credit as it can supply an opportunity to create a healthy credit history early. Unfortunately many college students use credit cards to supplement low incomes and high tuition costs.
Lower Credit Limit
Banks understand that students often have lower disposable incomes, so in an attempt to help them avoid the debt trap, banks generally try to keep the limits low on credit cards for college students.
The lower limit allows the card holder to still make purchases, but encourages frequent repayments to help keep the balance low in order to keep making more purchases. This helps to teach students responsible financial habits and allows them to understand the discipline needed when spending money on credit.
Rewards Cards
There are some credit cards for college students that offer rewards points. Generally set at around 5 reward points per dollar spent, the rewards are usually targeted to be items that college students would find helpful and are often tailored to the student lifestyle.
The types of rewards can include redeeming your points for gift cards, concert tickets, music store vouchers, movie theater tickets or even cash back rewards. For many college students, the opportunity to access rewards that can actually be beneficial for them can be a good incentive for them to continue making payments off their outstanding balance so they're able to accumulate more rewards.
Low and No Interest Introductory Offers
Some credit cards for college students are very lenient about offering low interest rates. In fact, some lenders will offer 0% introductory rates. This can be a great start for any student, as paying no interest means any repayments made come directly off the balance, reducing their total debt levels.
Some lenders are understanding the value of offering more than just one benefit with credit cards for college students. This means that a little shopping around and comparing different offers means you could find a rewards card that offers a cash back option along with charging zero interest for an introductory period as well.
When it comes to finding the right credit cards for college students, always spend a little time shopping around. Compare all your options and be sure to look carefully at any fees and charges that might be incurred on the account before you sign anything.
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