Best Student Credit Cards of 2020
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Student credit cards are great tools to help young adults build their credit scores. These cards can provide a good source of emergency funds as well, as long as students understand the debt and the risks that can come along with them. For the responsible spenders looking for the best student credit cards, here are some suggestions:
Citi Rewards+℠ Student Card
Credit Card Tips for College Students
Knowing the best student credit cards are on the market is not enough. You need to know how to use those cards effectively. It is easy to slip into debt when you’re not used to managing your own finances, so you have to tread lightly to avoid a serious problem.
First of all, don’t think of your credit card as “extra money.” You have to pay it back just like you would a loan from a bank. It’s not an excuse to go on a buying spree. You should always have a logical plan to pay off your card’s balance. The sooner you can do so, the better off you will be. That will help you avoid an array of fees along the way.
Learn about your rewards program and try to use it to your advantage. For instance, you may pay your bills on your credit card and then just pay off the card with the money you already have. You still get the rewards and your bills get paid. The only difference is that you went through one extra step to make that happen.
Always be on time with your payments, and be sure to make more than the minimum amount. Even a small $500 balance could take years to pay off if you just pay the minimum. If you think you are going to be late on a payment, try to contact the card company before you get a mark on your credit. One late payment can do serious damage to your credit score.
Overall, you need to feel confident in using your card without being irresponsible. Pay off your balance and monitor your spending so you don’t go into debt at an early age. Once you develop good card management skills, you should be able to get approved for an even better credit card in the future.