Many people get their first credit card as a college student. It just so happens that the age when consumers enter college is also the age when they are legally able to obtain a credit card. Of course, the fact that many college students are short on cash has something to do with it too. Choosing the best college credit card is vital to the first-time user’s credit success.
The ideal college credit card is one that has no fees, a low interest rate, and offers some kind of incentive for using the credit card. Typical fees that are charged by a credit card are annual fees and monthly membership fees. Paying a fee for the convenience of a credit card in addition to paying interest on your charges is a waste of money. Which, as a college student, you likely do not have much of.
You want to pay as little as possible for your credit card as possible. This includes the amount you pay in finance charges. After you make a purchase using your credit card, the creditor gives you a certain period of time to pay the balance without incurring a cost. This time is known as the grace period and varies from one lender to the next. When you carry a balance beyond the grace period, that balance is subject to a finance charge which is computed using your interest rate. The lower your interest rate (and your balance), the lower your finance charge will be.
The Citi mtvU Platinum Select Visa Card is a good first credit card for college students. This credit card has an introductory annual percentage rate (APR) of 0% for seven months. Not having an interest rate gives you a chance to get accustomed to using a credit card and paying the balance without incurring a charge. After the introductory period has expired, the APR for the credit card is 12.99% – 21.99%* (Variable). There is no annual fee associated with the card.
Another good credit card for students is the Discover® Student Clear Card. This card also has a 0% introductory APR for six months. With no annual fee, the credit card has a regular APR 16.99%. You can receive bonus cash back as a reward for purchases you make using the card.
Looking for a credit card with your school’s logo on it? Bank of America student credit cards are the best choice. Get the great benefits of a credit card while showing off your school spirit. Bank of America offers more than 80 college logo Visa, MasterCard and American Express credit cards.
If your college has a credit union, this is an excellent place to inquire about college credit cards. You can often find college credit cards with better terms from a credit union than from a larger banking institution. Before applying for any credit card, make sure you are aware of the fees and interest rate.
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