Substantial Student Rewards
Today, almost any student that is enrolled in an accredited four year college or university can apply for and receive a wide range of credit card products from the nation’s leading banks and issuers. The options that they have for credit cards include many that offer rewards or rebates to the student simply for using them. When you consider that it wasn’t long ago when it was almost impossible for someone without a solid credit history and employment record to qualify for a new credit card, this is rather amazing, and for a student without credit card experience, it can be overwhelming.
Today’s student credit card choices aren’t limited to cards charging high fees, with high interest rates and no benefits. Actually the opposite is true. Student credit cards offer rewards that provide the opportunity to earn points to be used to purchase merchandise, get cash back, earn airline frequent flyer miles and even special entertainment rewards that can be received for simply making your purchases using the credit card.
There are notable examples of this type of reward credit card that even offer a zero percent annual percentage rate, or APR, for 6 months. Some cards offer extra points for spending money at student favorites such restaurants, bookstores, record stores, movie theatres and video rentals stores. When you consider that many of these benefits come with no annual fee, it seems as if you are getting an amazing deal, especially since many of these features have only recently become available to general consumers in the credit card market. The fact that you as a college student are able to receive these benefits is quite extraordinary.
Of course, the credit card companies aren’t simply being kind and considerate. For one thing, they know that many students are inexperienced with the use of credit and so may fail to take advantage of the grace period to pay off their balances in full each month without being charged for interest. If you do end up carrying a balance and are charged interest, keep in mind that you will then end up paying for these “free” benefits. Even with a so-called zero-percent card, if your balance carries over after the introductory period, you will be charged at the regular interest rate. And even before the introductory rate expires, you may lost that zero percent rate if you are late with even one payment.
The truth is that the many student rewards credit card offers are a reflection of the importance that credit card companies place on wooing college students. Research shows that the first card a student in college uses is often kept by them for many years after graduation. This in turn provides the bank with an important long-term customer.
This doesn’t mean that these cards can’t be used wisely by college students for their own benefit. It can be a great benefit to simply establish your own credit history as long as you pay your card on time and handle your credit responsibly. The value of these cards certainly isn’t all to the banks. You can also take advantage of the reward earning power that comes with the everyday expenses of student life. Using your credit card to pay for tuition, rent, books, food and road trips can help you to earn incredible rewards and help you to float expenses to the end of the month for convenience. The key ton building a strong credit history, however, is to keep up with your credit card by paying on time every month and, if possible, paying off your balance in full before the end of each grace period. Your college years are a critical time for many reasons, and you can use them to form a good financial record with the responsible use of a student credit card. Students have every opportunity to make their first credit card choice a rewarding one.