How to Pick Up Your First Credit Card from Many Offers

Every credit card company wants to offer attractive deals to students. You will be showered with lots of email and tons of brochures. It is necessary to pick up a credit card which is just right for you. The following tips will be of help:

1. Select an appropriate credit card company - You should never go for a small local bank. Always go for a national level credit card company. It will be good for all your future financial needs. These companies will submit your details to all three major credit reporting bureaus.

2. Always look for cards charging no application fee or any other upfront fee. These fees will eat out much of your available balance.

3. Look out for the interest rate charged by the card company. Typically companies charge 14 per cent to 17 per cent interest on student credit cards. You should prefer the offer which has the lowest introductory rate and future APR lower than 16 per cent. With many offers, the rate steps up very high after a few months.

4. Read the agreement carefully - When you get your card, you will receive full agreement in mail. Make sure that this agreement reflects your expectations about the rate of interest, spending allowance and fee structure. There may be some fine print on the rate of interest or fees.

5. You should also look out for the grace period - it is the time you get to pay your balance every month. Normally card companies offer grace period between 21-30 days while a few may not allow even a single day!

6. Many card companies offer attractive rewards. But you will need to see whether your spending pattern can generate enough reward points. Also such rewards should not compromise other benefits available with the card.

7. Never even think of approaching to the subprime card vendors. They will attract you with some big upfront benefits and later their fees will erode majority of your credit limit.

You can also do some online research and get some comparative data before you take your decision.

Chintamani Abhyankar, is an expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and tips on personal finance.