Millions of students are going to be on a college campus this year and many will need a college credit card. Compare college credit cards for FREE and save! While some students choose to attend a school close to home, many students are hundreds or thousands of miles away from their parents. Students often have emergencies during college. Find a university credit card for FREE with our Credit Card Chaser!
They may have a fire in their apartment or have a medical emergency that requires a trip to the emergency room. Students should have a credit card in order to protect themselves from emergencies. Also, college credit cards are an easy way to understand where a student is spending their money. Compare credit cards for FREE with our comparison tool!
There are a number of student credit card options for students to select from. One of the most popular options for students is a secured credit card. These credit cards have a set credit limit based upon the amount that is deposited into an account. A $500 credit limit card requires that a student place $500 into an account. The student may make charges up to the limit but cannot go over it. Secured credit cards also require on time payments as well as minimum payments. The payments are reported to the credit bureaus. A secured credit card is an excellent option for students who do not have any credit history or want to only have a credit card for emergencies.
Student credit cards are becoming more and more popular. Student cash back credit cards offer special rewards such as cash back on certain purchase categories. Citi offers several student credit cards. The Citi mtvU platinum select card allows students to earn up to 4,000 rewards points for maintaining a good GPA. The Citi Forward card offers up to a 2% purchase APR reduction. Students are required to make one purchase, pay on time and stay under their credit limit for three consecutive months. Capital One offers some student cards also offer up to 5% cash back
Another excellent option for college credit cards is to offer a student an authorized user card under their parent. Parents who add their child as an authorized user are responsible for all charges. Students who are added to a parents credit card also build up their credit.
Can a student receive a credit card?
President Obama passed the CARD act. This legislation made it more difficult for credit card companies to market college credit cards. However, students are still able to receive credit cards. A student must have a verifiable source of income in order to qualify for a credit card. Students without a verifiable source of income may still be eligible if their parent is willing to cosign their credit card application. Parents are completely liable for any charges that their child makes.
Students also may have a difficult time receiving a credit card due to their credit history. Students should consider opening a secure credit card as described above. Any individual who has no credit history or a short credit history can open a secured credit card. Many banks often require as little as $200.
Benefits of Using College Credit Cards
College credit cards typically offer some type of rewards system for purchases. For example, a student who purchases their books on their credit card may earn 2% cash back or 2 rewards points for every dollar spent. This cash back can either be redeemed as a credit onto the card or mailed to the cardholder in the form of a check. Rewards points can be spent on gift cards and other rewards that are available on the credit card companies website. Some students are able to earn hundreds of dollars of rewards a year by charging their basic living expenses such as food, rent and utilities. Complete an online credit card application with our Credit Card Chaser!
Another benefit of using college credit cards is that they offer a method to keep track of your money. Some students who have debit cards or cash lose track of their purchases. An overdraft charge on a checking account costs over $30 and some college students can rack up multiple overdraft charges in just a few hours.
A credit card allows individuals to review their charges to ensure that they are legitimate. Finally, college students are able to repay their credit cards on their due date or several times per month. Some students enjoy being able to pay off a charge as soon as it posts to ensure that they are only spending what they can afford.
College credit cards also provide a safety net for students. There are times where a student may need to purchase an airplane ticket to return home unexpectedly. Students may also need to pay for a taxi ride to the emergency room. A credit card can ensure that students have funds available when they otherwise may have needed to borrow money from their friends or gone to the ATM.
Credit cards provide protection against theft. Students who have their wallet stolen will not have to pay for any unauthorized charges on their credit cards. Anyone who has their wallet stolen should immediately report that their credit card has been stolen. The credit card company will instantly cancel your card and mail a replacement card. Some companies are even willing to send a new card overnight. Check your company credit card reviews to make sure they are there to really help you!
Credit cards also allow students to build up credit. Credit is required in order to rent an apartment, take out a loan in order to purchase a car as well as open a cell phone account. While some individuals are able to still receive cellphone service without credit or rent an apartment at a higher price, good credit is easy to obtain. Consumers should simply remain below their credit limit, pay their bill on time and ensure that they check their credit report.
Credit cards also help students to make purchases online. While some students use their debit card to make purchases online, credit cards avoid tying up funds in a checking account. Students can make a purchase online knowing that their personal information is safe and secure. Best of all, they are protected from any unauthorized charges that could occur if their credit card number is stolen.
All college students should have a credit card. However, students should understand that when they pick a credit card, they should pick one they will be happy with for several years. A credit card should be open for a long time in order to help build a reputation with the credit bureau. Pick a college credit card that offers a low interest rate and charges as few fees as possible. Also, take the time to look at low introductory rate credit card and save money!
Also, pick a credit card that offers rewards that you will use. It is easy to earn hundreds of dollars a year in rewards on some cards. Students can earn those free credit card rewards by paying off their balance each month!
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