It is never too early to start thinking about your credit. Even if you are still in school, it is the perfect time to start looking for the best credit cards for college students. There are a ton of advantages to building your credit while you are young. In addition, having a credit card while you are in college also comes with numerous perks.
Why You Need to Build Credit Early
Many people are surprised when they find out how much of their lives is affected by their credit rating. Those with poor credit scores may find it hard to rent an apartment, get decent insurance rates, or even land their dream job. This is in addition to the steep rates you may be subject to if you try to take out a loan with prior bad credit. Establishing yourself as credit worthy as early as possible is the best way to be sure you receive favorable rates and treatment throughout your life. Starting from scratch is a lot easier than starting over after experiencing a low credit score for an extended period.
What Are OppLoans?
OppLoans is an online lender, specializing in small personal loans. In theory, they are an alternative to going to major banks or taking out payday loans. In practice, however, they are a very expensive way to get cash quickly. While the rates may seem lower than traditional payday loan centers, they are exceptionally high, especially when compared to the use of credit cards for the same purpose.
Most financial advisors recommend that people stay away from OppLoans, even if you are looking to consolidate debt or get a short-term loan. Obtaining and using a credit card is much less expensive and easier to manage.
Using the Best Credit Cards for College Students Responsibly
It is incredibly important to use your credit card responsibly, to avoid getting bad credit out of this experience. A good rule of thumb is to never put more than 80 percent of the balance on the card at any given time. That way, if something happens and you are only able to make your minimum balance, you have something left for emergencies. If you are unable to pay that minimum amount, you have some wiggle room on your card to cover late fees or other penalties. Using the best credit cards for college students responsibly also means only putting essential items on the card. For example, some students use their cards at the beginning of the year to help with the cost of books, preferring to pay that off over time to dropping a ton of cash all at once.
Students who take the time to invest in their own credit early on are universally happy with their decision. One client told Bonsai Finance that she was never prouder of her younger self than when she qualified for a mortgage, on her own, at the age of 25. Another Bonsai Finance client said that he was happy he opted for a card for college students when he was a senior, saying that it helped him stay well-fed while also building a great credit rating in the process.
You should start thinking about your credit rating as soon as you turn 18. Getting a high rating early on can be incredibly beneficial, giving you access to lower interest rates and better loan terms than your peers who are just starting out. Finding the best credit cards for college students is the ideal place to start. You can establish your credit history while using your card responsible for everyday items. As long as you make your minimum monthly payments and avoid going over, you can establish a good rating in no time.