If you are a college student interested in establishing credit, you can apply for a Visa Student Credit Card with or without a cosigner and open a new line of credit. A Visa student credit card can help you budget and spend wisely throughout your college career, and will help you build your credit.
Several banks and financial institutions now offer the Visa student credit card with attractive interest rates and other incentives for college students. Here are some tips for choosing a Visa student credit card, and things to consider before submitting your credit card application:
Choosing a Visa Student Credit Card Provider
Almost all of the major banks, including Bank of America, Citibank and Wells Fargo offer at least one type of Visa student credit card. Every financial institution offers a different interest rate, and some cards have annual fees.
It’s important to look at all of the terms and requirements for each card, and compare fee information, variable interest rates, and options for transferring balances from other credit cards.
Some Visa student credit card providers, such as Capital One, offer cash back on certain purchases, such as cell phone bills, restaurants, entertainment and other purchases. Other credit card issuers, such as Citibank, offer a student credit card that rewards students who get good grades and maintain a good credit history. Citi’s mtvU Platinum Select Visa Card has no minimum income requirements and no annual fees.
Pros and Cons of Having a Visa Student Card
Student credit cards are designed to teach college students responsibility and help them build their credit while making purchases for school. Some Visa student credit cards offer a lower interest rate than standard credit cards, and parents who cosign the card will be responsible for making payments on the account in the event the student defaults. Students who obtain a Visa student credit card without a cosigner have more privacy and control over their account, and can also build up their personal credit line.
Even though a Visa student card offers a number of benefits, there are some drawbacks and limitations to keep in mind. Credit limits may be very low, especially for a student who is applying without a cosigner and has not established any credit.
Credit cards that offer cash back on certain purchases may not be able to send a rebate check for up to three months after opening the account, and rewards may only be earned on certain types of purchases. Reviewing the terms of the credit card agreement in detail will help the student make the most informed decision when selecting and applying for a Visa student credit card.