CardInform Blog

So, there comes a time when we must break loose from the nest and foray into the wild, exciting, excessive, and delirious world of college. First things that come to your mind would probably be hooking up, beer, hooking up, and maybe some more beer. However, due to the nature of the world we live in, in order to hook up or get beer we need money. Parent’s, at least mine, are usually reluctant to freely offer funds for the purposes of hooking up or getting completely wasted, even if it is on cheapo Naddy Light.

The easiest way to avoid the parent problem is to get a job. But that would mean postponing all those pleasures that come with college and replacing it with responsibility. So why not get a credit card instead? Unfortunately, diving into the world of personal debt through credit cards come with great responsibility. Like Spiderman said: “With great power comes great responsibility”.

The main thing to remember is that credit card issuers like to prey on students just like tobacco: if you hook them early, you’ll have them for life. Essentially, you will need to be smart about picking a card that will benefit you most and remain responsible for the debt you incur. The last thing you want is to graduate with a tainted credit score due to years of ignored debt. Once you get that first job, you’ll have a heck of a time finding a decent pad with a bad credit bureau. This is bad because once you actually start making some money you will want to hook up even more and it’ll be tough with a dingy studio the size of a closet.

Here are some tips for the student:

• Find a card that offers rewards either in cashback or 529 education savings
• Don’t ever, I mean ever, put your credit card down to start a tab. You’ll wake up with more than a hangover and realize you spent over a thousand bucks on buying beer for people who don’t give a crap about you.
• Don’t spend beyond your means. Sure, get those textbooks but stay away from those designer sunglasses and 5-star restaurants. You can’t afford it yet.
• Try and not revolve or carry a balance. This is the death trap. Once you start getting hit with finance charges you’ll struggle to pay those off.
• Don’t ever be late on a payment. You’ll get stuck with extreme penalty rates up to 30% APR and huge late fees. Beg or steal money from your roommate to pay off at least the minimum payment.
• That date you have Friday night probably won’t call you back so don’t spend too much on a romantic dinner. It’ll probably creep them out anyway.
• If you take advantage of balance transfers, stay smart. Perhaps read my previous post about Making Money from App-O-Rama.
• Don’t use your credit card for Cash Advances no matter how desperate you are. Even if the store clerk accepts your fake ID and you realize you have no cash. Don’t do it! You’ll be stuck with 24%+ APR that get paid off only after low rate balances are paid off.

If you are brave enough to still want to apply for a student credit card, here are a few of the top rated ones based on an industry expert (myself of course):

1. Citi® Dividend Platinum Select® Card for College Students

• 0% APR for 6 months on purchases and balance transfers
• Relatively low APR for college students at 16.24%
• Earn 5% Cash Back on Purchases at Supermarkets, Gas Stations, Convenience Stores, and Utilities Including Cable for 6 Months and 2% thereafter
• This card can help you get some cash back for those essential purchases, even beer, if you buy at a supermarket or grocery store. With enough beer, it’ll help you hook up.
• To apply you won’t have to get a co-signer (parents or drunken roommate) and you don’t need a minimum income. Just can’t have a terrible credit bureau.
• No Annual Fee.

2. Discover® Student Card

• 0% Interest on Purchases for 6 Months
• 5% Cashback Bonus® in Popular Categories that Change Four Times a Year Like Travel, Apparel, Gas, Restaurants, Movies, and More
• No Annual Fee
• Only real problem is that Discover may not be as easily accepted as Visa or MasterCard. However, the benefits for this card are good you can take advantage of the 0% on purchases for text books but remember to pay it off.

3. Citi® mtvU™ Platinum Select® Visa® Card for College Students

• This credit card is cool cause it actually give you points for behaving well. If only girls would do the same.
• Earn 25 ThankYou Points for Paying on Time
• 0% APR* for 6 Months on Purchases, Cash Advances and Balance Transfers
• Get Five ThankYou® Points for Every Dollar You Spend at Restaurants, Book Stores, Record Stores, Movie Theaters, and Video Rental Stores – stay away from the porn, it’s a bad influence on grades.

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