Student Rewards Programs

Credit card issuers are offering more options to students who have spending potential and want to start building a credit history. The issuers are developing student reward program credit cards specifically aimed at this market. Credit card activity is reported to credit bureaus, unlike use of cash or checks. It is important that students using a credit card manage their payments and finances effectively to avoid developing a bad credit history that can damage them after they graduate.

Applicants for student reward credit cards should check whether the card offers a low or 0% introductory interest rate on purchases and balance transfers. Interest rates on student cards after any introductory period tend to be higher than average. A credit card can be a convenient way of spending but the importance of ensuring there are available funds to pay the card off each month cannot be overestimated.