Getting your first credit card is a significant milestone. If you want to play it safe and test the waters, a student credit card might be right for you.
As you’ve probably gathered, a student credit card is catered to individuals enrolled in a full-time college or university program. Student credit cards are used to establish your Canadian credit history.
That way, you can access all the treasures of adulthood. This includes a mortgage, a car lease, or an apartment lease.
Your credit card can be used for everyday purchases, much like an ordinary credit card. You can also benefit from great rewards programs, lucrative introductory offers, and low-to-no annual fees.
Before getting a student credit card, consider the following benefits and drawbacks.
When applying for a student credit card, it's essential to choose one that'll benefit you. Here are some tips to guide your decision.
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A credit score is a three-digit rating derived from your payment history and current debt. It ranges between 300 and 900, with a good credit score starting from 660. Your credit score is important because lenders will consider it when deciding to approve your mortgage or car lease.
Absolutely. The sooner you establish a Canadian credit history, the better. A student credit card can get you started. The credit score requirement won’t deter you once you’re ready to buy your first car or apply for a mortgage.
Since it’s catered to students, you must be enrolled in a university or a full-time college. You’ll need to provide proof of enrollment. If you’re an international student, credit card providers will require proof of a student visa.
Use it only to build your credit history. Avoid spending beyond your means and pay your bills on time every month. It’s essential to charge purchases gradually to your card. Start with a small amount you can easily pay off, then build up as you improve your budgeting and money management skills.