Companies issuing credit cards start targeting potential customers at a relatively young age. The first offer may arrive as early as the high school graduation. By the time students proceeds towards college, they will be inundated with innumerable college credit card offers and promotional material.
Choose Your College Credit Card Carefully
Most of these recipients are not aware of the mechanisms that control and determine credit. Banking on this flimsy knowledge base is a sure-shot recipe for disaster. The cardholder can plunge into a lifelong struggle with financial difficulties including debt and bankruptcy.
The Best Undergraduate Credit Card
The Discover Student Card is one of the very few credit cards offered to individuals with absolutely no credit history. Most credit cards for college students demand a minimum credit ranking of good. The Discover Student Card does not charge any annual fee. It also comes with an attractive cash back program.
Credit History Facts for Young Students
A cardholder’s credit report begins with their very firs credit card account. Every transaction and its payment impacts future finances. Hence a student should learn to use their card with great caution. College students should be discouraged from using their credit card for convenience shopping. A credit card s not a source of income and should not be used indiscriminately. Inability to pay balance on time ruins credit at a young age.
Personal and financial safety is of supreme importance at a college campus. Card information (especially the card number) should never be disclosed. Any loss or theft should be reported immediately to prevent financial damage. Parents procure a student credit card for emergencies (flat tyres, airline tickets, school supply purchases etc.). Frivolous expenditure should not be charged on the card.
Reward and Cash Back Program of Students Credit Cards
The rewards, terms and conditions vary across different cards. A student should thoroughly understand the terms of agreement. Ideally they should be able to manage on these terms. Several different cards should be compared to ascertain a card best suited to an individual’s requirements. Making sound financial decisions requires patience.
The Citi Forward Card for College Students is one of the better cards in this segment. It rewards proper card utilization thereby reinforcing beneficial credit practices. The card also has a rewards exchange program. It offers redeemable bonus for paperless statements (provided that the facility is activated within three months of opening the account).
Best Platinum College Credit Card for Students
The Citi mtvU Platinum Select Visa Card for College Students rewards students for performing well in academics. The student can earn up to 2000 points twice a year for a good GPA. Additionally 25 ThankYou points are accredited to the account in every month in which the balance is paid on time. This is subject to the cardholder staying within the credit limit. The ThankYou points thus earned are redeemable for gift cards, travel, electronics, music and more.