How Should You Choose a Student Credit Card?
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There are specific details that you should pay attention to when it comes to credit cards. They can either help or hurt your financial situation, and being broke AND deep in debt during college is the worst tight spot you could ever be in when it comes to money.
It is important, when you are looking for a credit card to use while you are in school, to find one that will be beneficial to you. You need one that will not allow you to spend so much that you get far beyond your ability to repay in debt, but one that will let you get the things that you need to that you cannot instantly pay for in this scraping-the-bottom-of-the-barrel time in your life. Here are a few things you should pay attention to when shopping for the credit card that is right for you.
APR
Knowing what and how the APR works is important. The best kind of interest rate you would be looking for is a fixed rate, but those are harder to find than a variable rate, and may not be a very low fixed rate. Sometimes you will benefit just as much with a variable interest rate. Make sure you know which you will be getting with the credit card you go with.
If you are on a variable interest rate, it is important to know by what system your interest rate will go up. Of course, this information is more important only if you will be carrying a balance from month to month on your credit card. If not, or in other words, if you plan on paying your credit card off as you go each month, the interest rate will not be such a big deal for you.
Do not confuse the APR with the introductory rate. Some credit cards will offer you a great intro rate, but will end up charging you a much larger APR after the time given with the introductory rate expires. Make sure that you go for the lowest rate possible that will last you longer than six months.
Rewards Cards
The credit cards that give you rewards for the purchases you make are the best kind. These kind of cards allow you, in a way, to get a discount on the things you purchase on credit. Try to go for a credit card that will give you the kind of rewards that you will use, like ones with points that you can cash in for a numerous amount of items rather than just something like sky-miles that you may not use.
Penalties
Read the fine print carefully. You need to know how much your interest rate will go up, and what other kinds of charges they will be pouring onto you if you make a late payment or two. You may not plan on making late payments, but it is important, when you are shopping for a credit card, to know how much you will be charged IF you fail to make a payment on time, and what other credit card companies would charge you that might be easier on you.