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College Student Credit Cards: Types, How to Get, Advantages and Disadvantages

The Most Popular Credit Card Types For College Students

These days, credit cards for students have become quite popular as they enable them to get the benefits of cards with low interest rates. In fact, some cards do not even charge any kind of fees. Apart from the benefits, the cards also help the students to build credit. Nowadays, there are a number of such cards to choose from, such as secured, unsecured, merchandise, and prepaid cards. But, you should always choose the one that suits you the most. Along with, you should also keep in mind that credit cards come along with a lot of financial responsibilities. Therefore, you must use them wisely.

Unsecured

It is a kind of card that does not require any cash deposit make purchases from a simple line of credit. This kind of card for student offer limited or normal credit, but is definitely the most preferred option for the students. In fact, it has been designed in a way to help student to improve their credit profile. One more good aspect about this type of card is that it offers 1% cash back as a bonus amount on each and every purchase you make through it. In addition, the card does not come along with any kind of annual membership fee. On the top of that, it even offers an extra 25% reward when the monthly bill is cleared on time. You can redeem the reward through a check or directly into your account. Moreover, this type of card does not put any limit to the amount of money one can earn interpretación de conferencias.

Secured

This is a type of card that fetches money from an account shared by your cardholder. Reliable and good secured cards always submit a detail of your payment record to credit bureaus in order to allow you to build credit. The details of your payment record are submitted to three chief credit bureaus and email or text messages are used to send monthly payment reminders. This type of card usually charges around 20% of annual percentage rate (APR) on purchases, but does not charge any annual membership fees.

Prepaid

Prepaid cards are quite similar to a secured one and it also includes a checking account. As its name suggests, in this type of card you spend the funds that you deposit into the card. For this reason, the monthly fee associated with this card is quite nominal.

Important Guidelines To Help College Students To Get A Credit Card

In earlier days, it was very simple for college students to get credit cards as there were many sources available. There were too many companies who would offer free cards to students by just filling applications. Unfortunately, in February 2009, Credit Card Act of 2009 came into existence and made very strict new rules regarding students to qualify for a card. Now, the rules have totally changed and are so difficult that students find it hard to qualify. Before going to get a card, students are supposed to know many things about the qualification and related stuff, following are few guidelines, you can have a look.

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