Wednesday, June 1, 2011

The Best Student Credit Cards Reviewed & Tips For Using Them Right

A students first credit card is not something to be taken lightly by a student or their parents. Students need to realize that credit cards are a form of money and you should not spend money you don't have. There is a place for credit cards in peoples lives but being responsible with them is the most important thing. The number one rule when being responsibly with credit cards is only spending what you have the ability to pay back, every month. Rule number two is never carry a balance. If you don't know if you can do that, then stay away from credit cards, your headed for trouble.

Here are a few credit card tips:


  • Simply, don't use a credit card if you don't have the cash to pay it off when the bill is due. If your at the gas station and spend $20, when the bill comes in and you only make the the minimum payment, that $20 for gas can turn into $60 in the long run. DUMB. If you must use a credit card pay it off the same month and bank the rewards. 
  • Never carry a balance. Your a student with little or no income. You have to be very careful with money. That balance will grow and grow over time. That $100 balance will work its way up to $1,000's before you know it. 
  • Remember you have a credit limit. If you go over your limit you will be charged a large fee. Also remember your ability to pay off your monthly bill is in direct relation to your monthly income. 
  • Annual fees are a no-no. It's very import to not pay a annual fee. It's also not necessary. There are many credit cards that have no annual fee. Stay away from them. 
  • Avoid extra fees. Making a late payment or going over your credit limit will earn you a nice penalty fee. These are unnecessary costs you have to pay. It may be a sign your not ready for the responsibilities of credit cards. 
  • Get the best deal on credit card offers. Today there are many companies offering credit cards. Shop around and compare their rates and reward points.

Some Student Credit Cards Available

The best of the bunch is the Discover Student card. It has some good cash back rewards and has no annual fee. The rewards are up to 5% in categories that change like travel, department stores, gas, restaurants, groceries, and more. There is a o% APR for the first 9 months. Also a 1% unlimited cashback bonus on everything else.



Another good choice in credit cards is the Citi Forward Card for College Students it offers all the cashback enticements of the mtvU card (5% at restaurants, movies, books) and 1% on everything else. You earn ThankYou Points with every purchase. Also you can earn an extra 10 points per month for staying under your credit limit and paying on time.


Here is a list of other student credit cards from Citi:




Discover also has other styles of card to suit your tastes:





7 comments:

  1. The first tip is definitely the best. If you don't have the money at the time then don't buy it.

    ReplyDelete
  2. Those are really valuable comments. But it's human nature to hope for the better...buying things and hoping for an incoming windfall. And this behavior is even more evident to students.

    It really saddens me there's a huge lack of financial education. Imagine the fact that students borrowed $117 billion in just federal student loans last year. And there is an increase in students unable to keep up with the interest rates.

    Currently, there are only 15 states offering finance related courses in high school. Let's do more than that!

    Best regards,
    Belinda

    ReplyDelete
  3. Thanks for sharing tips for using credit cards. It helps me to gain my knowledge about it.

    ReplyDelete
  4. I just found this blog and have high hopes for it to continue. Keep up the great work, its hard to find good ones. I have added to my favorites. Thank You!

    ReplyDelete
  5. Nice information, many thanks to the author. It is incomprehensible to me now, but in general, the usefulness and significance is overwhelming. Thanks again and good luck!

    ReplyDelete
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    ReplyDelete

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