Are you a college student in search of a credit card? Are you in the process of helping your child apply for and secure a credit card?
On the plus side, there are hundreds of student credit card offers to choose from. This increases the likelihood of finding one that suits your every want and need.
Conversely, with so many choices, it takes a detailed comparison process to ensure that you make the right decision.
No two students (or parents) look for the exact same thing in a credit card, but some details are too important to overlook. Here is a handful of questions to answer:
1. Why do you want a student credit card?
You shouldn’t apply for a student credit card until you have a reason for doing so.
Maybe you want one so that you can more easily and conveniently pay for books and other supplies. Perhaps it’s on your radar for emergency use only.
Just make sure you have a reason to apply for a student credit card.
2. What features are most important to you?
Features vary from one offer to the next, so focus on this during your comparison.
Top features include the ability to earn points or cash back, access to an app, and advanced security measures.
3. What steps will you take to avoid abusing the power of your credit card?
This is a big one. It’s easy to say that you’ll use your student credit card in a responsible manner, but temptation is all around.
Be sure that you take steps to avoid trouble. If you don’t, you could find yourself with a credit card bill that you’re unable to pay. And if you miss a payment, your credit score will suffer.
4. Do you want a secured credit card or unsecured credit card?
Student credit cards come in both varieties. The primary difference is that a secured student credit card requires a cash deposit that’s used as a security deposit and your credit limit.
With an unsecured credit card, you don’t have to deposit any cash upfront.
These are the types of questions to answer and details to consider when searching for a student credit card.
As you move through the process, you’ll come to better understand what’s best for you. And until you do that, you should stay on the sideline. A student credit card is a big responsibility, and you must make sure you’re ready for it.
Do you have any experience applying for or using a student credit card? Did you have a credit card while you were in school? How about your child?