Guide to Managing Student Rewards Credit Cards Correctly

Student rewards credit cards are designed especially for young people that do not have a vast credit history. Hence, if you are a college student, applying and getting approved for the card may not be too difficult. Best of all, you will be able to enjoy rewards from the use of the card. Most of the major credit card issuers present cards that offer rewards to students.

In order for the application to be successful, you will need to provide your personal information, which may typically include your full name, date of birth, your social security number, your address, and your estimated gross income. These pieces of information are required so that the credit company will be able to verify and document them in order to identify their clients that open credit card accounts. Social security numbers are needed to help the companies extract credit bureau data. If you are under 21, you should provide confirmation that you can afford the card and pay it off. This is why you should present proof of income. If, for any reason, you cannot provide one, you can have a co-signer.

Disciplined Credit Card Practice

When using the credit card, it is important that you exercise maturity. It will be easier to build a strong foundation of credit history without worrying about bad credit if you keep a responsible use of the card. There are a few ways that will help you achieve this, including paying your monthly balances completely. This not only eliminates extra interest rate fees but also reduces the risk of obtaining bad credit.

Paying only the minimum due payment will put you in danger of getting bad credit. This is because you would still have an outstanding balance sitting on your account. This balance will continue to incur additional fees on APR charges, which can reach 20% or even higher. To take advantage of the student rewards credit card, you should only use it for important purchases. As a student, you have to be discreet on your expenses.

It is also quite helpful if you stick with just one credit card. Before you apply for a card in a particular company, you should do a research first especially regarding their rewards program. The credit card law states that credit card companies should not set up their application centers within a thousand feet from the campuses. This is to discourage students from applying or signing up for a card without knowing about the existing terms and conditions.

Currently, it is much easier to apply for students rewards credit cards because applications can be submitted electronically. The rewards may be enticing, but it is crucial that you manage your card use properly.

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