How Student Credit Cards Work
Student credit cards have become quite popular in the last 10-15 years. They have helped many a college student establish a credit rating, which helps you build your financial footing and secure later credit when you really need it. Wouldn’t you much rather start building your credit now than to wait when you have a spouse, a house, and three kids? It will be much more difficult then when your household expenses are much greater.
A student credit card will give you purchasing power right now and allow you to learn how revolving credit works.
Many student credit cards offer cashback incentives just like gas credit cards. In fact, one of the items that you can get cashback on is gas. Other items include food purchases – restaurants and grocery stores – travel, department store purchases, and other types of purchases. In essence, just about anything that a college student would spend money on can earn you a cashback payout.
The best student credit cards offer an introductory period of no APR. That’s Annual Percentage Rate. If you have a 0% interest rate for a period of time, then you can make any amount of purchases and it doesn’t cost you anything. Of course, if you don’t pay your credit card balance off each month, then you’ll eventually have an interest rate so use good common sense and financial savvy when using your credit card.