If you are off to a college or university to earn an academic degree or certificate, you must get a student credit card. It is the best financial tool for students who are new to credit and personal money management. It offers a superb way for students to get into financial freedom. Cashback, free rewards, and discounts on online purchases are not the only benefits a student credit card offers. But things like real-time alerts, mobile app, and instant transaction history also helps student build good payment and spending habits. As a result, they are better able to stay on top of personal finances and educational costs.

What is a Student Credit Card?

Credit cards that are specifically issued to students with no or limited credit history are known as student credit cards. A best credit card for students usually has no annual fee, comes with a lower interest rate, and offers special perks and reward programs. To get a student card, one must provide documents and details like proof of schooling, proof of income if any, and must be 18 years old. An issuer may also have particular eligibility criteria an applicant must meet.

Benefits of Student Credit Card

Let’s have a look at some benefits of a student credit card and why you should get one.

Build Good Credit

After completing your studies, you may need a loan to start your own business or an auto loan to buy a dream car. These transactions usually require a good credit score to determine your creditworthiness and ability to make continuous monthly payments. Getting a student card during college life helps you build good credit when you pay off the balance in full every month. As a result, you can easily apply for different types of loans or debts to meet your financial needs in your professional life. Applying for a credit card in college could be the best way to begin and build an excellent payment history.

Emergency Finance

Whether you need to fly back home from campus or you got an accident, a student credit card offers you a quick financial cushion so you can meet emergency needs without borrowing from someone else. You can use your card to make emergency payments immediately that you need to pay off at the end of the month as your credit card balance. After fulfilling your sudden financial needs with a card, you must pay the balance in full before the due day to avoid any negative effect on your credit history.

Spending Tracking

If you are not sure where your money goes every month, a student credit card can help you track spending and payments. Whenever you want to check recently made payments, just log into your account and get the statement within a matter of moments. Some credit cards also come with mobile apps that give quick access to statements even while on the go.

Purchase Protection

Most student credit cards offer extended warranty insurance features. If a purchase was made with such a card and products are damaged or lost, the card issuer will help you in repairing, refund or replacement. This helps students save lots of bucks in terms of not paying the costs of repairing or replacement. Purchase protection and extended warranty insurance are applicable on particular products or goods. So, make sure to read the fine print carefully to find out the product list you are allowed for purchase protection.

Student Credit Cards Offer Enticing Rewards

Student credit cards are usually promoted with enticing perks and rewards. Such cards offer discounted rates on both online and offline purchases for students. Sometimes students can also get a portion of spent money back in the account as cash back. In this way, students can earn free rewards and points that can be redeemed for particular things mentioned in the agreement. No annual fee is another exciting benefit of student credit cards to help students save lots of bucks every year.

Better Interest Rates

Students tend to enjoy relatively lower interest rates when they apply for student credit cards than other cards. This reduces their overall costs if they are unable to pay the full balance before the due date. When applying for a credit card, you must compare different cards and interest rates to choose the right card with a lower interest rate.