Every year students across the country coming on college campuses can expect to get bombarded with credit card offers. On the average they will get from five to seven during their first week on campus. Campuses even have booths offering goodies such as t-shirts, food, and frisbees just for signing up for a credit card on the spot. While a free gift may be nice, potential student cardholders can probably get a better deal elsewhere or even online.
Best Cards for Student
Most college students do not have an established credit history so they should pick cards that offer a low interest rate after the initial sign-up period. Even without an established credit history, students should be able to qualify for a reasonable interest rate. They should find one with an annual percentage rate in the mid-teens, or about 16 percent to 17 percent. Many cards issuers offer introductory rates of 0 percent for the first six to 12 months. Avoid all credit card with an APR of over 20 percent.
Also, students should realize that there are many card options that do not charge an annual fee and offer a grace period of at least 20 days, which can be key if they do not make their monthly payment on time
Again, it is very important to note that a card with a low interest rate is best for college students, since they often carry a balance and a higher APR will end up costing them more.
Students who have a good handle on their expenses and can exercise restraint when using their card should consider a rewards credit card because these cards provide incentives that match up with their spending habits. Reward credit cards may grant the cardholder points when charging such student expenses as books, groceries or gas. Therefore, a rewards card may be ideal for a student who has control of his or her finances and pays off their card balance each month.
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