Before you make the decision to apply for student credit cards, make sure to ask lots of questions. A bank or other financial institution may come to your campus during registration to encourage students to open a bank account, and these institutions could possibly offer student credit cards as well. Ask the financial representative about anything you don’t understand in the application process. If you are sincerely interested in receiving student credit cards from particular banks, set up a time to speak to representatives. It will help to have a one-on-one conversation, so you can better understand the details of the bank’s policies and not feel rushed.
Student credit cards differ slightly from regular credit cards in that there are not as many requirements. Most student credit cards require that you be a full-time student at an accredited college or university and have at least a part-time job. Some companies that offer student credit cards issue cards according to academic success as well. Others will allow you to save on certain school supplies at participating stores.
As with any credit card, you must have a plan for how you will use your student credit cards. It is a good idea to use different cards for a few related purposes (i.e. a card just for books, tuition and school supplies each semester, one for groceries, one for clothes and entertainment, ect.). Don’t apply for more student credit cards than you think you can handle. You are more likely to overspend with more than one student credit card, because it will seem that more student credit cards means more money — until the bills arrive. Make sure that you stay within the line of credit issued for your student credit cards, and pay your credit card bill on time. Avoid late fees by paying on your card little by little, even before you receive a statement in the mail. And, never spend more than you have to on your student credit cards. Going on a shopping spree with your friends may seem harmless now, but when the bill is more than you can pay (since you probably won’t have a full-time job if you’re a full-time student), you could be headed for trouble.
Major companies and credit bureaus look at your student credit cards in the same way as regular credit cards when reviewing your credit. You can improve your credit score while you’re a student by spending wisely, even if you are not making a lot of major purchases. By spending money from your student credit cards wisely and paying your bills on time, you are preparing yourself to make major decisions that will require credit, such as buying a new car or home after graduation.
Don’t underestimate the chance to establish yourself in the adult financial world with student credit cards. Continue to communicate with your bank, and make alternate payment arrangements if you have to. This is much more responsible than avoiding calls or bills, because the debts will still appear on your report. Those who issue you your student credit cards will be much more willing to work with you if you are honest about your financial situation, as emergencies do come up and people’s financial situations can change constantly.
With discipline, intentional planning, (and for some, a whole lot of willpower), having student credit cards can be something you can enjoy now, and benefit from in the future.
By Tamiya King