Credit Cards for College Students

For college students, having a credit card can be extremely helpful when paying for tuition, textbooks and supplies, and even living expenses. And using the card carefully and making payments on time is an excellent way to begin building a credit history and earning a high credit score. Leaving school with a good credit rating will make it much easier to rent an apartment, buy a car, or even start a small business.

Credit card incentives for students

Different credit card companies offer different incentives for students to apply for their cards. Some offer a low introductory interest rate to entice new cardholders. This can be a very helpful perk if you’re able to pay the balance of your credit card purchases before the introductory rate expires; otherwise you may be paying a significantly higher rate than you expected.

Other companies may offer cash back bonuses on your purchases. With these offers, it’s important to read the terms and conditions section of the application carefully since only certain purchases may qualify for the bonus. Often you’ll need to make your purchases through retailers that have partnered with the credit card company, rather than being able to use your card anywhere and have the bonuses credited to your account.

Other incentives may include appealing reward programs, no annual fee (a great option if you plan to pay your balance in full every month), and no minimum income levels or co-signers required. The incentive you select should be based on what will save you the most money in the long term and add value to using your card.

The necessity of managing credit

For college students who have regular incomes, paying a credit card balance in full or making the minimum payment required every month is not a difficult task. For others who may be inexperienced with the responsibilities of credit, having a card may seem more like “free money” than a legal agreement with a lender that can have serious and long-lasting consequences on their credit histories. If students don’t pay their credit cards on time or default on their payments altogether, they probably will not be able to get another credit card, buy a vehicle, or even be approved for a home or apartment lease until they have paid back their creditors in full.