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Three Basic Things a Student Credit Holder should Learn

By George Hauser
Published: Saturday, November 21st, 2009

Even students nowadays can get a credit card. Of course, applying for one is much easier than keeping it in good shape. If you are not responsible enough to manage your finances while you are still a student, you can be in a lot of debt by the time you finish school. That’s why it’s always helpful to look up different credit score tips that you can apply. 

Many of these credit score tips would at first guide you into learning what the difference of credit report and credit score is. You should also exert effort understanding how the credit system works in general and how it affects your financial life. However, sometimes reading up all these information at once can really be exhausting. 

And most of them could introduce alien concepts. This should not turn you down because indeed building a good credit earlier can have many benefits in the future. You should remember that many credit score tips out there have a common theme, and that is to be responsible in your financial activities. Here are three things that could help you to be a responsible credit card holder while you are still in school. 

APRs Vary

Your annual percentage rate (APR) refers to the costs of borrowing money. The first thing you should understand when you apply for a credit card is that you can not have one without paying the issuer for their services. One of the credit score tips says that you should be financially prepared to pay for the charges you make so that you won’t accumulate debts. 

This means that you should look for providers that give low rates. There are many student credit cards that have zero percentage APRs, and these are the cards you want to have. If you already have a card and you are not sure what your APRs are, check your billing statements. If you see high APRs, you can negotiate with your creditor for lower rates. 

Credit cards have bonuses

Credit cards especially made for students are great because most of them offer cash-back bonuses. When you charge for food or gas and you repay them promptly, you are given cash incentives. You can actually make money from borrowing money. Another of those great credit score tips advise you to inquire about rewards and bonuses you can get from applying for a certain credit card. 

There are student credit cards that give you rewards based on a point system. The more points you accumulate, the more chances you have at claiming special items. The most common rewards are discounts on air travel which could really be helpful when you plan to have a vacation or go home during long breaks in school. 

Your credit score is important

Finally, the most important thing you should always keep in mind when you apply for a credit card, or the next time you use it is that you should maintain a good credit score. Just like your grades in school, your credit score reflects a lot of things about your financial capability. For one, if you keep a high credit score, it will be easier for your future credit applications to be improved.

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