How to Find the Best Student Credit Card

Finding a credit card to use during your college years doesn’t need to be difficult. There are many lending institutions that offer them. The trick is to find a lender that will provide the services you need without charging an arm and a leg for the privilege. Many lending institutions are eager to provide students with a credit card because they feel that doing so will cause the student to do business with them for years to come. Following are a few tips on how to find the best student credit card.

Find the One That Suits You

Not all credit cards are created equal--there isn’t any single card that will work for everyone. The credit card that suits you best is the one that gives you the credit services you really need at a price you can afford. Lenders offer an assortment of choices for students. Before you sign any papers, do a little research to find out which credit card is right for you.

Services

Because lenders are trying to entice future borrowers--people who will borrow from them repeatedly over a long period of time--they offer a wide variety of services to students. You can get credit cards that provide rewards for using them in any number of different ways. Student credit cards can earn cash back rewards as well as discounts on items purchased through an individual store’s credit card. For instance, if you get a credit card through Discover--such as a Discover Student Open Road card--you can earn double cash back at gas stations and restaurants. If you get a dedicated credit card from a store such as Staples or Crown Jewelers, you can take advantage of special offers from that store. Many lenders offer rewards for paying your bill in full every month or for paying it on time.

Types of Credit Cards

In order to get a credit card, you usually need a credit history. Because lenders are aware that a borrower must start somewhere, they provide alternatives to people just starting out. Due to the fact that college students usually get better paying jobs once they’re out of school, the lenders are willing to help them get started in the credit world by providing such things as low or no annual fees. Be aware that sometimes this privilege comes at the cost of higher interest rates. On the other hand, a lender may charge a higher annual fee but reduce the interest rates in the hope that you will use them more.

Unsecured Credit Card

An unsecured credit card is designed to help students build a credit rating. It usually requires no cash deposit and is aimed at people who have a limited credit history. With an unsecured credit card, such as the Student Rewards Visa Card offered by Capital One, you can not only charge items but you can also get cash advances. The interest rates vary according to usage.

Secured Credit Card

A secured credit card works a bit differently. Instead of drawing on a line of credit, as is the case with an unsecured credit card, when you use a secured credit card the money is drawn from an account you have with the lender. If you choose a good secured credit card, such as the Classic MasterCard through Orchard Bank, your usage will be reported to the three major credit bureaus. In this way your credit score will go up, providing you pay your bill on time.

Prepaid Cards

With a prepaid card, sometimes called a debit card, you can have the convenience of using a card without actually going into debt. The reason is that you can only use money that is already in your account. Essentially it is a checking account that combines the ease of use of a card with no need for a credit check. With a prepaid card, such as the Upside Visa card, you won’t have any activation fee and you can deposit funds directly into your account. A prepaid card allows someone with poor credit to purchase items using a card instead of having to write a check or pay cash.

Shop Around

In order to find the card that’s right for you, spend a little time researching your choices. There are many varieties of credit cards available for students because the lenders are vying for your business. This can work to your advantage, but you should be careful and read the fine print before signing a contract.

You can read more about student credit cards and online colleges and universities at BestOnlineColleges.com.