Canadian student credit card
In Canada everywhere you look there's a new college student credit card offer. These companies love college students because they are the fastest growing group of credit users. Many credit cards are offered designed specifically to appeal to college and university students.
Student credit cards can help students build their credit histories while earning reward points that can be used at places where students shop.
Companies offering students credit cards
In Canada a number of companies offer students credit card. Some of these are
Discover Student Card.
Discover Student Card clear.
Discover Student Card Monogram collection.
Discover Student open road card.
Capital one classic platinum for young adults.
Citi platinum select visa card for college students.
Citi upromise card.
Citi dividend platinum select card for college students.
The Chase flexible reward student card.
Costs and rewards
Most credit cards for students come with a 0% introductory interest rate for six months. Depending on the card, this rate may apply only to purchases, but in some cases it also applies to balance transfers and cash advances.
Once the introductory rate expires student credit card charge a fairly high APR from 12.99% and up.
Most of these credit cards offer reward points and cash back. These vary from 1% to as high as 5% for different types of purchases. These points can be redeemed for a variety of rewards including cash back, plane tickets, concert tickets, gift cards etc.
Advantages of a student credit card
1. A student credit card enables a student to slowly build their credit, assuming they pay their bills on time every month.
2. Some credit card let you redeem the reward points for air miles or other merchandise so you save on the cost.
3. With a student credit card a student does not have to carry a lot of cash which mean it safe.
4. Credit card can be of a help in an emergency situation where you need cash to pay for books, tuition or rent for a month.
5. Credit card statements are a quick way to keep track of where your money goes each month.
6. Parents do not have to send cash to the students for their monthly expenditures they can directly pay the credit card company.
Disadvantages of a credit card
These student credit cards can be of great help for the college students but they can also be their worst enemy.
1.They charge a very high interest rate after the low initial introductory rate.
2.For many college students across Canada it's hard not to give in to what seems almost like free money with those free credit card applications all over campus. Too many students who give in to the temptation use credit cards to satisfy impulse urges to purchase, without any plan for how to pay off their ever-growing credit card debt.
3.If you miss payments the interest rate further goes up.
4.Credit cards enables you to spend money you don't have.
Points to remember
Decide whether you really need a credit card or not. Consider your personality and ability to budget. If you don't think you'll be able to manage paying off your credit card debt every month entirely, don't get one.
Think very hard before you sign up for more than one credit card. It can be a slippery slope when you max out one card and start spending on another student credit card.
Pay your total credit card bill every month. If you can't pay it all, pay as much as possible. Don't leave an ongoing balance on your credit card and treat it like a bank. That's just dumb.
Make note of the phone number you have to call if you lose or someone steals your credit card.