Things To Watch For When Applying For Student Credit Cards

Behold, the notorious gateway to debt of a typical college student, the credit card. Student credit cards are known for having lower spending limits and high APR as a way to “control” spending. While that thought process might work, some students are oblivious to using it as a way to develop smarter spending habits.

I was very serious when I applied for my first credit card. I knew that a student credit card could put me into a hole of financial misery and I sought to learn as much as could before I applied for one.

• Be prepared to show proof that you are enrolled in school
  Student cards have their own benefits and perks because they are targeting the young adult population in school. Special offers and programs are just methods that credit card companies use to take advantage of the young and the inexperienced.

• Know the introductory rate period and the terms
  Usually, you’ll find that most credit cards have an introductory rate of 0% APR on purchases, balance transfers, and cash advances. The catch is the time that the rate is in effect. Regular cards often offer an introductory period of 12 months but for student credit cards, it is usually 6 months. For cash back cards, the cash back percentage usually drops after the introductory period also.

• Know the APR and terms after introductory period
  The APR for student credit cards have a big increase after the promotional periods. It is important to be aware of this rate. It also gives you a good reason to spend less and to pay of your balance in full. Don’t be surprised when the rate jumps and your rewards/cash back decrease.

These are the basics but young adults continue to disregard these fundamentals when filling in their credit card application. So… watch out!

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