Students have their expenses, whether it comes to traveling, medicines, gas, dining, or something else. Hence, they need to find a way to cut corners intelligently. Luckily, nowadays, you have an option to apply for a student credit card. According to one of the recent studies, new-age students are quite credit-savvy.
About 56% of them have a personal credit card and nearly two-thirds of them clear payment on time with or without assistance. Besides, it is exciting to discover that one-fourth of them also pay more than the minimum due amount. And most of them use online payment systems.
If you are also a student, you may want to get one for convenience or emergencies. At the same time, you must be thinking of your credit score too. Going by that, it makes sense for you to apply for a credible student credit card. The credit cards may or may not have a credit limit, and even if it is available, it will be lower. Many of them also come without annual fees. And, the best part is some of them can give you a welcome bonus on signing up. There can be specific terms and conditions around it. So, it would help if you learned about them.
Things to know about student credit cards
These are just like regular credit cards designed for more than 18-year-olds, usually. The companies give these cards to students who are in school, earn or not, or have some credit. Some of the typical features of these credit cards tend to be limited credit, low or no annual charges, and a few additional benefits.
If you want to manage or build credit, then it can probably be the best way to get started. Then, the cashback offers and rewards points can be an additional attraction as you get to redeem them from time-to-time on specific categories. So, you can say that getting a credit card can prove advantageous for you in financial terms.
Besides, some cards may offer you a bonus on account opening, and some may not, and that amount can be anywhere up to $50. It is a significant sum. Hence, when you purchase a credit card, you can see whether it comes with similar benefits or not. Even if you don’t get a signup bonus, you can check those that provide flexible or rotating bonus options or useful cashback.
A student credit card with a flexible bonus system allows you to switch from one bonus category to another a month so that you can spend without worries. For instance, if there is travel on the card for the next month, you can use the travel category to secure some rebate on hotel and ticket booking. And when you come back, you can adjust it to gas or other relevant options.
As far as the rotating bonus system goes, you can think of a scenario where your card gives you one percent cashback on all shopping but a higher percentage when you buy groceries. You can expect rewards in categories like gas stations, dining, cinema, and so on. Sometimes, you may have to purchase a thing from a designated store only to earn the bonus.
There are many credit card companies. So, educate yourself as much as possible through reliable resources and take advantage of the facility of the student credit card.