Your starter credit card will probably be one among many other firsts as a fresher at college. A study in 2006 conducted by the United College Marketing Services revealed a few insightful statistics about first time credit card users in college.
According to the survey, more than 70% of the students keep their very first credit card for the rest of their lives. The dropout rate owing to financial pressure and non repayment according to the same study is close to 8.5 percent. As you can infer, making an informed choice where starter credit cards are concerned is of great importance. Listed below are a few tips which will help you choose your first credit card.
- Go For a Card With Benefits – Starter credit cards with good benefits such as low interest rates and no bank charges should be chosen. In addition to this some starter credit cards also offer perks like air travel points or miles and points for gasoline fill ups. Based on your lifestyle and the activities you take up, choose a credit card that give you the best benefits. For instance, if you drive a lot, go for a credit card that offers gasoline credit points.
- Hone Your Ability To Build Credit – If you wish to apply for a loan or a mortgage at a later stage in your life in order to buy a car or a home, you will need to build a strong credit record. In order to build a strong credit record, go for a card that reports to all three credit bureaus or credit assessment agencies of the country. Also, read more about credit scores and credit reports to fully understand the ramifications of credit usage and the timely consequences of non repayment.
- Opt for Zero Annual Fees – Go for a card that does not require you to pay annual fees. This will help you in building credit. If you pay off your balance every month in time, the credit card will not cost you too much.
- Know About Scholarship Perks – There are starter credit cards that offer scholarship perks. If you do well at college, you get cash back. Similarly, you can also use your credit card to get tickets for movie screenings and concerts if you do your research thoroughly and choose wisely.
While plenty of credit card agents and companies might offer you bottles, bags and other freebies when they set up shop near your college, it is recommended that you make an objective decision. Remember, more than 70 percent of students in college retain their credit cards for life – so make a smart and informed choice, instead of regretting the same later
