Student Credit Card Information
Student credit cards allow those with little to no credit to build their credit, while getting perks. They enable you to earn cash back or rewards on your purchases. Building a credit history is important for anything from buying a house or car, to getting a credit card with greater rewards and higher credit limits.
The cash back or reward earnings on college student credit cards vary from 1% to as high as 10% for different categories of purchases. You should read through each card's terms and conditions to select the credit card that will give you your optimum rewards for your reward category. Some student credit cards even reward you points for maintaining a good GPA and paying on time.
Points can be redeemed for different types of rewards, including cash back, plane tickets, concert tickets, gift cards, and in some cases exclusive MTVU Rewards, like VIP passes to Spring Break, Studio Tours, and more. Again, to compare credit card offers, look for the card that offers the rewards that you find most exciting.
Most credit cards for students come with a 0% introductory interest rate for six months, this way you don't get heavily penalized while you're getting used to making monthly bills. This 0% rate typically only applies to purchases, but in some cases it also applies to balance transfers and cash advances. If you will be using your card for cash advances or balance transfers in addition to purchases, read through the terms and service to make sure that your card's 0% introductory rate applies to both purchases and cash advances.
College credit cards can offer great advantages if you pay the balance in full every month. You shouldn't think about using a student credit card as a student loan. Once the introductory rate expires, student credit cards charge a fairly high APR, from 16.99% and up. It is easier to find student loans from banks at lower rates.
