Student credit cards will probably be one of the first things you will encounter as you go off to college. This very ‘adult’ financial tool can be a great help during emergencies when cash is tight and you need to pay for goods or services immediately. As a substitute for cash, it provides a safe and convenient method for purchasing.

How to get the best deal on your student credit card
Getting your student credit card is a lot easier than you think but if you’re not careful, you could end up with an unsatisfactory deal. To find which credit card is perfect for you, perform a shop comparison by talking to three or four different companies. They all offer different rates so you have to know what is out there to get the most out of your application.

Look for perks and extras at the same cost. When looking for a student credit card, remember that nothing is for free. Whatever comes piggyback on your credit card pretending to be a freebie is not really a gift. You’re paying for it and just don’t know it.

To make the most of your so-called freebies and perks, look for a student credit card that offers discounts, warranties, flier miles, free gas and other benefits. You may only earn them each time you use your card but they can come in handy in the future once you’ve accumulated enough.

Choose a student credit card with low annual fees. If you can, go for a no-annual fee credit card provided there are no hidden fees in the offer. You can save a lot if the credit card company agrees to waive it. Watch out for the renewing period when the credit card company charges the annual fee and make sure you know exactly how much and if you can afford it.

Advantages of getting a student credit card
Spending and buying power – student credit cards allow you to buy services and school-related materials even without cash.

Build credit history – a student credit card is probably your first step in building your credit history and how you manage it will have a significant impact in your future credit rating.

Build confidence and independence – a student credit card allows you to manage your finances for the first time and helps build your discipline and reliability.

Disadvantages of student credit card
A way to spend more than you can afford – there is always a temptation to spend more than you can afford to pay, even with a credit limit. If your expenses go unchecked, you could end up with a credit card debt that you will find difficult to repay.

A regular cost concern – as a student, your main concerns probably would be limited to spending money for food, accommodation, gas for your car and other basic expenses. If you have a student credit card you pay at a minimum, you will be saddled with regular payments month after month.

Where to get student credit cards
Student credit cards are available anywhere there are banks, schools and credit card companies. You can even apply for one online. Companies have even brought student credit cards into campuses, setting up booths and tables to promote their services and encourage students to sign up.

How it affects you and your future
Knowing and respecting your paying capacity is key to using and managing your student credit card. Used wisely, it can help you develop good money sense and teach you a lot about responsibility. It can be very tempting to have but just because it’s available doesn’t mean it’s right for you. Just remember to use self-discipline each time you flash your student card. Your credit rating, employment, financial reliability – a good part of your future, incredible as it seems – rests on that piece of plastic.

Mario Churchill
http://www.articlesbase.com/finance-articles/getting-schooled-on-student-credit-cards-120376.html

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