Choose Wisely between Student Credit Cards & Regular Credit Cards

Credit card companies come up with various schemes (or sometimes plot a scheme!) on credit card offers, but most people are unaware of the difference that lies between the types of credit cards. Each type of credit card offers different benefits and is suited for people with varying source of finances. If the person is a veteran card user, then credit card companies offer him a platinum credit card, while for a college student a student credit card is the best option. Both these card vary in the fees and advantages offered.

Advantages of a Student Credit Card:

Struggling college students by now are learning how to manage their finances. Therefore, maintaining a good credit card report is essential. Learn why to choose a student credit card over a standard credit card.

• Student credit cards should have no annual fee, the fee which is charged annually to keep the card active. However, regular credit cards are charged with annual fees.
• The APR (Annual Percentage Rate) is low for student credit card. It is usually 0% introductory APR, but after 6 months they increase to about 16-17%. Yet, compared to regular credit cards that charge about 20-25%, it is cheap.
• Student credit cards have no transfer fees for transferring balance from one card to another whilst for regular cards it is from $0-$50. It is best to avail a student credit card if they want to merge multiple cards.
• Student credit cards are offered a free access to online money transactions and payment of bills.
• There is no transaction fee charged on the purchase of items on student credit card while otherwise it is 1%-5% on regular credit cards.
• Because students are engaged in full-time studies, there is no pre-requisite condition for employment or minimum income. However, it may require minimum household yearly income to assure that the student is able to pay the bills.

It pays to get a student credit card rather than a regular one with so many waivers and zero fees. This should boost a student to build a good credit history for his future investments.