It is a well-known notion that credit cards are available for people who are either self-employed or salaried individuals. This is also a very common eligibility criterion for most credit cards. But, there are cards available for students as well. Yes, these cards are available for college-going students above the age of 18 years. These credit cards have very low-interest rates.
If you are a student and you are going to use a credit card for the first time, keep in mind these top 6 credit card tips for students for efficient use:
- Do your research and browse thoroughly: It is imperative to get your research right to the last detail while getting your first credit card. That is why the first and foremost tip for first-time student credit card users is to read the fine prints and browse through the available options to make informed decisions. You can also search about zero annual fee cards as one of your best options as it will bring down your credit card cost. You need to know what category you are looking for, what features you want in your credit card? etc.
- Always pay your bills on time: Because your payment history has a significant impact on your credit score, you'll want to ensure that no bill slips through the gaps. Set a monthly alert on your phone or contact your bank to set up automatic payment for the entire amount every month.
- Know about credit score and review it periodically: As a soon to be the credit card holder you should have complete knowledge of what a credit score is, what are the things that can help you bring up the score and what are the things you must avoid that can harm your score drastically. Apart from knowing all about CIBIL Score, you should also review your credit report periodically to spot errors (if any) on time and take necessary measures to rectify them.
- Don't reach or cross your credit limit: Reaching your credit limit or crossing it isn't a healthy habit and it can affect your credit score significantly. Declined credit requests, over-limit fees, higher interest rates, decreased credit limits are some of the other major repercussions of reaching or crossing your credit limit.
- Don't overspend: As a college-goer, the probability of overspending increases drastically, and having a credit card seems like a cherry on top. But, we should always try to keep our expenditures within the budget. Overspending may lead to difficulty while paying back the amount, reaching the credit limit, and even falling into debt traps due to accumulated interest and charges in case of failed payment.
- Ensure your card's privacy: Taking care of your credit card safety is certainly one of the most important things to do after getting the card. You should follow the credit card safety guidelines by heart. Some of the safety tips are:
a) Ensure PIN security.
b) Don't share your card's details with anyone.
c) Don't click on suspicious links.
d) Use credit cards on authorized websites only.
e) Report a lost card immediately, etc.
Additional Reading - 5 Common Signs of Wrong Credit Card Usage
