The main benefit to holding a student card is better purchasing power. Some issuers offer cards with different fees, however, including transaction and processing fees. In addition, while some issuers report payments to the bureaus, most financial institutions report credit card payments only. Financial institutions feature student cards with a low purchase rate and discounts. With many issuers, cosigner is not required. Regular payments help students to improve their credit score.
There are other options, one being to apply with an adult cosigner or to obtain a TD student credit card jointly. Whatever the type of card, this is a good way to learn how to manage debt and personal finances. There are banks that feature student cards with cashback on department store and online purchases. Other cards attract new customers with generous bonuses – students get a 25 percent bonus for timely payments. Issuers accept scores as low as 630 and offer multiple benefits. Students are also offered points that can be deposited in savings accounts. Issuers offer rewards points that can go toward investment tools, cash rebates, and so on.
Credit cards for students go with different annual percentage rates, over-limit fees, and default penalty rates. Banks ask about income and outstanding balances to check the applicant’s debt-to-income ratio. Students are also asked details such as type of program and year in school, i.e. medical, dental, law, graduate, or trade school, community college, or high school. 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.
Depending on their credit rating and profile, students can apply for rewards, no annual fee, and other types of cards. One option is to apply for an U.S. dollar card which is a good choice for extended stays in the States and short trips. These cards allow students to buy textbooks, supplies, and tickets from U.S. stores, airlines, and other retailers. Student cards are often used to pay unexpected expenses, for example, family emergencies, computer breaks, trips to the ER, etc. Whether you need to pay utility bills or buy clothing, you can use a student card.