Owning a student card can be an ideal way of building up a credit history. It can also come in handy when paying for everyday expenses when you don’t have access to cash.
The process of getting a student credit card should be similar to that of getting any other credit card, except you should be diligent about trying to find ways to get the best interest rates.
How do you get the best interest rates for student credit cards?
Try to find student credit cards that offer 0% introductory APR on purchases. By getting a zero interest credit card you could avoid interest payments for a year or more. That could also give you a lot of time to reduce your debt. Keep in mind that once the introductory rate ends, you will start making interest payments again.
The best student credit cards have transparent terms and conditions.
You should make sure that you repay your balance in full every month. You should also make sure that you make payments on time.
You could try negotiating a lower interest rate with your credit provider.
Improving your credit score can be one of the most effective ways to qualify for a lower interest rate.
Do your homework. Shop around and see if you can find better deals with competing credit card companies.
Read the fine print and make sure you understand the terms of your student credit card agreement.
Try not to exceed 35% of your credit limit. Try using your student credit card for emergencies and aim for a low credit utilisation. This could go a long way towards getting you the best interest rates for student credit cards.
Check your credit score annually. The reality is that if you have a poor credit record you’re more likely to be charged a higher interest rate.
Read here to find a good deal on a student credit card!