Used wisely, these perks can make it cheaper to buy gas, restaurant meals and merchandise with credit than cash.
Los Angeles, CA (PRWEB) February 16, 2012
As college students head for Spring Break destinations from Panama City and Cancun to the Caribbean, many take with them a “charge first; ask questions later” mentality guaranteed to produce financial hangovers later. To avoid this outcome, CreditDonkey.com suggests savvy students compare different student credit card offers for deals that will make the vacations less expensive and help them to establish good credit histories.
“College students are an important market for credit card issuers, since they represent the companies’ next generation of customers,” said Charles Tran, founder of credit card comparison and education site CreditDonkey.com. “What some students don’t realize, however, is that some companies offer special introductory rates and cash back bonuses to get kids to choose their cards. Used wisely, these perks can make it cheaper to buy gas, restaurant meals and merchandise with credit than cash.”
At different times, some incentives that college student credit cards may offer include:
- Zero percent introductory APRs on purchases (not cash advances) for up to nine months. These are the equivalent of interest-free loans.
- Cash back bonuses of as much as five percent on purchases in rotating categories (or introductory categories). These often include gasoline, restaurants, supermarkets, drugstores and convenience stores.
- Cash back bonuses of up to one percent, for purchases in other categories.
- Zero-percent fraud liability – sometimes bundled with email and mobile fraud alert options.
- APR reductions for students who use credit wisely.
To establish a good credit history from the get-go, Tran advises students to pay off the entire card balance every month. “At this stage in your credit history, I do not recommend charging the whole Spring Break vacation on a card unless you can repay the debt immediately. Issuers scrutinize the histories of young adults to make sure they’re using the cards responsibly. Piling up a big debt from Day One is a red flag.”
To find the best credit card for their needs, students can visit CreditDonkey.com to search for options, conduct comparisons and apply for the best student credit cards right on the site.