As a student, you might be plagued with expenses that may be difficult to suffice without a reliable source of income. A credit card might be the answer to your worries and as a student, you have the chance to get one with low or zero fees. However, you should also note that such is a chance for you to establish great creditworthiness for future lending. With student credit cards being easier to qualify for, it might be tempting to max them out which might soil your credit profile.
Most credit card companies acknowledge the plight of students and as such offer credit cards without hefty annual fees with an easier application process and some free rewards. You nonetheless need to be careful when applying as the agencies differ in their policies and reward formulas. The choice of a credit card agency can be a major difference between you being able to afford your dream home in the future or being deemed unworthy for the mortgage. The Canadian Federation of Students reports that more students are getting into bad credit card debt. This means that you have to make a wise decision.
Choosing the Best Student Credit Cards Canada
There are numerous credit card agencies in the market. However, the best among them share several characteristics. Here are some aspects to look into before you settle on a credit card.
Annual percentage Rate (APR)
You can consider this aspect as the cost of the credit card you borrow. If you will fail to pay off the balance every month, it is wiser to compare several cards and their APRs to select the cheapest amongst them. A great choice will allow you to have fewer accrued payments to pay at the end of the year. Fewer payments will be easier for you to clear hence lessening your chances of falling into bad debt.
Most agencies will require you to pay a specified amount each month if you fail to clear the balances on a monthly basis. Check the amount to verify how cheap it will be to clear especially after prolonged accrual.
You might be charged a fee yearly to use the credit card. The fee adds to your total payments meaning that you will have to pay interest on it on top of the interest that accrues on your spending.
Ensure that you know about all the charges associated with the card. Some cards have hidden charges that may bite you later on. Some of the normal charges you may encounter include the ones imposed when you overspend, use your credit card abroad or make late payments.
Introductory Interest rates
This characteristic includes you have low or zero interest charged when you initially take the credit card but such increases gradually over time. To know the best student credit cards Canada, evaluate the duration of their introductory rates.
Rewards or loyalty points or
When you spend more, you get more points that you can redeem when shopping. Verify where you are allowed to redeem such points and your likeliness of using them too.
You may qualify to get cash refunded to your credit card but some conditions regulate such. Check the terms to be fully conversant.
You can apply for a credit card online by filling a simple form that enables the credit card agency to verify your creditworthiness. The application also allows the agency in question to get your details. Avoid appearing as a fraud by filling in the information correctly.
A credit card will ensure that you have a stress free life as a student with zero to minimal income. You are also advised to use one prudently to improve your creditworthiness and chances of getting more loans in the future. You should apply from the best agencies and Bonsai finance helps to link you up with credible companies. We rate the best student credit cards Canadaand give you reliable guidance to assist you to make a prudent decision for hassle-free student life and a better financial future. Talk to us today and let us help you shape your financial future.