Credit cards: can’t live with them, can’t live without them. But really, you can’t live without them. Whether you’re a plastic junky or an advocate for cash, there’s no escaping the friendly foe that is the credit card.
You need credit. I need credit. Everyone in the world needs credit. To apply for a loan, to buy a car, to rent an apartment – you need a credit score. The only way to build credit? Have a credit card. Believe it or not, you even need credit to apply for a credit card.
So where do you start?
Luckily for you, you’re still in college. This is a time where credit cards target you: their future money-making customers. This is the time where credit cards pity you, understand you and try to make a good relationship with you in order to keep your business for a lifetime. Your lifetime, to be exact.
What does this mean? There are many credit card lines designed specifically for college students. These cards offer a low and often delayed-interest rate, cash back on things college students spend the most money on and limitations that ease you into the world of financial responsibility.
Banks such as Wells Fargo offer their Wells Fargo Cash Back College Card feature no annual fees and a low Annual Percentage Rate (APR: the interest rate charged for each purchase) for the first six months, followed by a low-moderate APR, depending on your credit qualification. And if you’re under 21, you can add a co-signer onto your card to get a better credit qualification.
To qualify, you must have an income of less than $12,000 per year, which most college students categorize in. The card also boasts three-percent cash back on college-student purchases such as gas and groceries.
To best avoid debt traps, US News advises new plastic pursuers to only consider cards without annual fees, to always pay bills in full and to maintain a steady income while in contract.
If you don’t quite trust yourself with that kind of power (ahem online shopping addicts, that means you!) you can ease yourself into the world of credit by asking your parents to add you as an authorized user on their own credit cards. This way, you aren’t in full responsibility of paying off purchases, but you still can begin the credit-building process that you will need in the future!