For most college students, credit cards aren’t high on their priority list for taking care of things; after all, students with loans can pay for things with direct debits from their bank accounts, just like students receiving financial aid from their parents.

The simple truth of the matter is that most students don’t think about credit cards, so when the time comes when they need one, they end up rushing through the selection process and end up with a less than optimal card. for their needs or, even worse, one that actually ends up being detrimental to them in the long run.

So what’s a student looking for a credit card to do? Simple, they need to investigate! Take a look at a wide variety of student credit cards, their benefits and drawbacks. Just select one that you are comfortable with and that you feel will meet your needs well, without causing you too much hassle.

So what features should you look for? Well, here are a few things to keep in mind in your search for the perfect student credit card.

Fee

Some cards charge you an annual fee for their use; I like to advise students to stay away from these types of cards, as their good points are usually not enough to outweigh the fact that you have to pay for them. You already have good tuition, textbooks, residency, and so many other things to worry about, there’s no point in adding another to the list.

Credit cards that charge annual fees are aimed more at business people who spend a lot of money and have a lot of disposable income, not students on a fixed budget. As a result, most cards will not have that fee attached. However, if they do, consider whether you really need the benefits of that specific credit card before you sign up for it.

spending limits

When I started my freshman year of college, the first credit card I applied for had a credit limit of $500, and it ended up being more than I needed at the time. As I went to college and my overhead increased, I ended up requesting that they increase that limit to $1000 and add a second card with a $1500 limit; this was mostly just for when i bought textbooks or paid tuition, like i wanted. to get the most out of my credit card bonus plans, but it was a good example of how I got the most out of cards.

incentives

Incentives are bonuses that companies add to their cards to entice more people to sign up for them. A good example of this is the “cashback” card, where a small percentage of what you spend on your card is refunded to you.

One credit card that was popular with my friends was the supermarket card, issued by one of the supermarket chains where we lived. Instead of direct rebate, they offered a store credit that was double the value of most rebate plans at the time, the convenience of which appealed to many students.

Interest rates

Ideally, this should never be a problem, as you would be able to pay off your balance each month and therefore never increase interest on your account. In practice, however, things won’t always work that way. Therefore, interest should also be a concern.

The industry average for annual interest rates is somewhere in the 19-23% range, compounded monthly. However, as a student, you should take advantage of the discounts available to you; If you do your research, you should be able to find a card to suit your needs with a student discount interest rate in the 10-15% range.

While 10% may not sound like a lot, if you ever lose your job, have to quit, or have some other unexpected event that affects your finances, interest can add up very quickly. One way to partially prevent this is to first deliberately seek a lower interest rate.

Here are the four main aspects of a student credit card that you should look into before choosing which one you need.

Ultimately, your decision should be guided by your needs at the time and the card you feel best meets those needs. A good credit card, combined with careful spending and a very strict budget, can actually help him as a student and give him benefits he wouldn’t normally get from his purchases.