Like anything you start using for the first time in life, you tend to be a little weary of how things work and if you’re actually using it properly. When it comes to a student credit card, it shouldn’t be any different. You should know what to look out for and what fees you may entail in the long run. I’m going to tell you a little bit about these cards and what you should look out for so that you don’t make the mistake that most students make, which is not doing research and applying for a card that doesn’t suit their needs.
The annual fee – This is a fee that most students pass up. They tend to glance over an application and apply for a card that looks like it will be the best for their wallet. What they don’t do is glance over the terms and conditions and see if there’s any fees involved with the card. While most student credit cards generally don’t have any fees, you still have to look out for them just to make sure.
An annual fee is a fee applied to the card annually and will be charged to the card regardless of how much you use it. So, if you spend a thousand dollars a month or nothing at all, this fee will be tacked onto your bill. Most times, credit card companies will waive this fee for the first month as an incentive but after that, it will more than likely pop up on your bill.
The APR – The APR or aka annual percent rate is probably one of the more important fees you’re going to have to keep your eyes peeled for. This rate will determine how much you’re going to be charged on your unpaid balances. Experts generally will tell you to pay your bill off in full to avoid paying these fees. Remember that if you do pay your bill off in full, you won’t have to worry about this. This fee is generally in the open when you apply for a card but it’s best to look out for it when you do apply if you don’t plan on paying your bill of in full.
The rewards – The rewards generally don’t have a fee attached to them but they can have restrictions. A lot of people will apply for a card thinking they are getting five percent cash back but instead, they later find out that they have to spend five thousand dollars a year in order to be qualified. This is one of the biggest tricks that the credit card companies like to play. You can really get a lot for your rewards but just make sure you glance over the terms.
A credit card can really make you a lot when it comes down to the rewards system; just make sure that you look for some of the fees mentioned above. All credit cards vary when it comes to fees, some have fees that you never thought cards had. If you use your judgment and do what’s right, finding the fees shouldn’t be a problem.
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