Secured student credit cards – 5 things you should know about these before you apply

Most students go for secured student credit cards because they find this is the easiest way to get one. There are many, many advantages attached to this type of cards, as well as pitfalls and you need to know about both before making up your mind about which one and which type you should apply for:

1. The fees – when it is the matter of secured student credit cards, this means you have made a deposit, which would be one hundred per cent of the sum you want to load the cards with or two hundred per cent. This depends upon the student credit cards providers. The fees they charge is very important because unless you are sure about the sum and frequency, you would all of a sudden discover that these fees totally consumed your deposit.

2. Rewards they offer – most providers offer a number of reward points when you use the student credit cards. Take some time to research what are the best offers in the market. These rewards could be changed into cash-back, gifts, payment of fees, and the like. You need to choose the providers, which offer the best possible reward system.

3. Rate of interest – you need to keep in mind here that you have made a deposit when using secured student credit cards. In other words, you are using your own money. Therefore, logically speaking the rates of interest should be extremely low. Whether it is the processing fee, rate of interest or any other fee, these should be reasonable since they are not actually offering you credit; rather they are enjoying the deposit you make so you could use student credit cards from their bank/financial institution.

4. Acceptance – though this is not a real big issue, since most secured student credit cards are accepted not only nationally but also internationally, you need to look into this matter and get such an assurance. In many cases when you assume something and take it for granted, it turns out to be wrong. Therefore when you apply for any type of secured student credit cards do not forget to ask about their acceptability.

5. Introductory offers – as a student you should understand that you are a very valuable customer to the secured student credit cards. Just imagine if 100 or 1,000 or 10,000 students deposit US $5-10,000 in a bank towards the deposit for secured cards; understand that numbers count. Allow yourself to be wooed by gifts, discounts, fee waivers, and so on.