Credit cards are one way that you can begin to build credit. Credit cards are one way to build your financial future but they are only one possible solution to this. Credit cards are often a double-edged sword and this article will give you some pointers on what you should avoid with student credit cards.
The first key on what you should avoid with student credit cards is to not sign up with the on-campus teams who often show up. When choosing a credit card, you want a company who you have done business with or your parents have done business with. If you have any problems with your credit card, you want to have confidence that your issue can be handled in an efficient manner.
With on-campus credit cards, how can you be sure that you will get a satisfactory response? The one exception is if a bank comes to your school. You may want to have your credit card through your bank because you have the opportunity to talk with a banker about your credit card in person. This may be a great option if you do not want impersonal service and having to dial a 1-800 number every time you have an issue.
The second key is to look for a card with low fees or no fees whatsoever. Credit card companies make no money no matter what you do with the card. When you swipe the card at the grocery store or at the bar, the card company makes money. To give you a little background, if you spend one hundred dollars at Wal-Mart, Wal-Mart only gets $96 or $97 out of that $100. The other money is split between Visa or Mastercard or whoever’s emblem is on that card with whatever company you have the card through. Paying no fees should be a bargaining point because credit card companies are vying for your business. You should not have to pay for the right to do business with them.
The third key in what you should avoid with student credit cards is to not choose your first option when a card is presented to you. Take a couple of hours and compare the different student credit cards that are available to you. Each card is slightly different and some of the different features can matter to you on what you get with the card. You may be able to find a card which offers rewards for you using it. This goes back to the first key in that you should know what your options are and taking advantage of a free t-shirt doesn’t help you much in the long run.
Hopefully these three keys in what you should avoid with student credit cards give you something to think about. It comes down to having a relationship with a company you want to do business with and keeping your costs down. If you can find rewards, that is an extra incentive to work with a credit card company.