To compare student credit cards, consider factors such as interest rate, credit limit, and whether or not you will need a parent to co-sign on the student credit card with you. It is important to shop around and compare student credit cards because they are available from many different companies who may offer different interest rates. Also consider additional benefits that may be available on the card, such as rewards points or cash back.
Begin by comparing available monthly interest rates. Student credit cards tend to have fairly high interest rates, because it is usually your first credit card and you do not have a good credit score or a credit history yet. Often, the interest rates can be lowered by having a parent co-sign the card with you, but some people may prefer not to do this. Different companies, credit unions in particular, may offer lower interest rates, so don't just apply for the first card you see.
In addition, be sure to read the fine print. Many credit cards offer low or 0 percent APR introductory rates, only to increase the rates to 20 or 30 percent or more after six months. Keep in mind that if you are ever late on a payment or miss a monthly payment, the credit card company has the right to increase your interest rate at that point too, without needing to give you any warning.
The next thing to consider when you compare student credit cards is the credit limit. The credit limit is often relatively low on student credit cards, for the same reasons interest rates are high. If a high credit limit is important to you, you will almost certainly need a parent co-signer. Otherwise, start with a low credit limit to begin with, make all your payments on time, and within a year or two you can request that your credit limit be increased.
Consider any other features that you might want on your credit card when you compare student credit cards. Some credit cards offer benefits such as a points or rewards system, as well as a percentage of cash back on purchases. Some may offer incentives such as interest rate reductions for paying the monthly bill on time. All of these benefits can be beneficial and can encourage you to use your card responsibly and develop a good credit history.
