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8 Brilliant Tips on How to Choose the Best Student Credit Cards

Credit card choices for college students are constrained. You have to consider the kinds of purchases you make frequently and fees needed for having a specific card wisely. You need to prevent potentially undesirable effect on your credit history. You also need to avoid any interest charges by settling your balance every month and on time.

1. Choose Secured Credit Cards

Secured credit cards are ideal for students who have credit problems. The card enables you to build your credit and also comes with a chargeback protection. A secured credit card is usually backed by the money deposited by the cardholder into a given account. The card combines various features of the basic credit card with the inherent constraints of a debit card.

2. Choose Credit Cards without Annual Fees

Always look for cards without annual fees. Paying annual fees is not an essential expense without the prospect of earning numerous rewards.

3. Avoid Financing Tuition With a Credit Card

Any time you carry a balance, try to subject all purchases to interests since credit cards provide terrible interest rates. Charging your tuition to the credit cards is not a wise finance option. There are no benefits as in the case of student loans.

4. Never Accept Reward Cards

Earning a reward for using funds does not set an excellent precedent for students. Instead of looking for cards with rewards, focus on getting credit cards with low-interest rates. A majority of credit cards provide free travel and cash back as bonuses. The popularity of travel rewards credit cards and cash back credit cards has significantly increased.

5. Avoid Using a Co-Signer

Students under the age of 21 years can circumvent the banks directions by having a relative or older friend co-sign the application. In such a case, both parties risk their funds and their credit ratings. The co-signer can also miss payments or lose a job.

6. Always Use One Credit Card

You should only consider applying for another card with complimentary features after you have shown a track record of reasonable payments. A MasterCard or a general Visa can be utilized anywhere credit cards are accepted unlike department store or gas credit cards. Choosing such cards helps you to develop the habit of paying your credit card bills on time. Always limit your credit cards at first.

7. Ensure Your Credit Card and Bank Accounts are in The Same Institution

Payments become easier by utilizing transfer between accounts instead of preparing checks or making payments to a different institution. Also, you only have to go one place to see all your account information. Therefore, it is a smart idea to keep your saving, credit card, and checking accounts in one bank.

8. Keep Credit Cards Safe

Always ensure your credit cards are secure and safe at all times. You should report any unusual activity on your credit cards to the credit bureaus immediately. You should also order your free annual credit reports so as to monitor your credit rating. Always verify that websites are secure prior to making any purchase online. Avoid becoming an identity theft victim by ensuring your credit cards are never left unattended.

In conclusion, as a student you just need a basic credit card. You can avoid costly mistakes by using streamlined products. Sharing the above tips on Facebook will help you to know more about the best credit cards for students and the latest trends on the market.

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