Credit Card Options for Students

by admin on October 30, 2014

Financial institutions feature student cards with a low purchase rate and discounts. Many issuers offer cards to students who are enrolled full-time and are new to credit. This is one way to gain experience, develop sound financial habits, and build a solid credit history. While financial institutions advertise multiple benefits, customers pay foreign purchase transaction, late payment, and other fees. In addition, while some issuers report payments to the bureaus, most financial institutions report credit card payments only.

There are other options, one being to apply with an adult cosigner or to obtain a card jointly. Financial institutions also offer cards that are specially designed for students and feature discounts and promos on school supplies. Some banks also offer convenient online tools to allow students to check their credit score free of charge. Issuers offer cards to students with fair credit, but applicants with a score below 600 usually require a cosigner. Many issuers advertise student cards with no annual fees and points to be redeemed for cash, media and books, goods, electronics, and other items. The main benefit to holding a Scotiabank student credit card is better purchasing power.

Some cards feature rotating cashback categories while others feature exclusive experiences. Together with participating retailers, issuers offer presale tickets, VIP packages, travel rewards, and other perks. Student credit cards are usually offered to consumers who are enrolled in accredited institutions. Banks ask about income and outstanding balances to check the applicant’s debt-to-income ratio. Banks request financial information to assess whether students are able to handle credit responsibly. Some banks also ask about accounts held in other banks and whether you are an existing customer. Some banks also require account and sort code number, permanent address during the past three years, and other details. To get approved, students are asked to present proof of residence and valid ID. Registered, full-time students are offered different types of cards, including unsecured and secured. Those who study in the U.S. may want to apply for an U.S. dollar credit card which helps avoid transaction and other fees. These cards allow students to buy textbooks, supplies, and tickets from U.S. stores, airlines, and other retailers. Using a student credit card is one way to meet unexpected expenses, including gifts, car repairs, electronics repairs, and so on. Students use cards to pay insurance, parking tickets, and other costs.

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