How to Find the Best Credit Cards for College Grads
Graduating college feels great. It’s time to drop the books, print off that resume, and hit the ground running in the real world (or travel to Europe). Regardless, everyone needs a little plastic to help them out.
Whether you’ve warmed up with a student credit card, or in need of your first credit card, it’s important to begin building credit. However, between Social Sciences and English Lit, there wasn’t a lot of time for Credit Cards 101.
The Best Credit Card for You
For college grads. It doesn’t take a finance major to know that debt is not something you want to accumulate. Credit cards do not equal “free money,” and debt has a ton of repercussions (oh, what? You’ve heard that before?)
What to Keep in Mind Before Signing Up
- Your new income. Know what you can afford. That new luxury car is great! Test drive it every weekend if you want to… That penthouse is totally awesome! Don’t even think about it… You get the idea.
- Rent/buy/live comfortably, yet with a thrifty attitude. Remember you have all sorts of new bills to pay.
- Begin thinking about paying off student debts if you have them.
- If you have credit card debt from your “college” credit card, that isn’t going to go away by itself either.
It comes down to budgeting, and finding a piece of plastic that you can ultimately pay off quickly. It’s also about applying for one without getting slammed with annual fees, abhorrently high interest rates, or other traps no one warns you about.
The Credit Card Checklist for Recent Graduates
- No Annual Fees. Find one with no annual fees. Credit card companies enjoy charging you up to hundreds of dollars per year for just keeping their card in your wallet. When you’re just starting to earn an income, who needs those extra fees?
- A great APR. Low or zero percent APR on purchases and balance transfers. Annual percentage rates are the amount of interest that you will be charged per year for your card. Your income may not allow you to pay off your credit cards fully at first, so don’t allow your interest to be so high that you’ll never be able to catch up. Keep an eye out for zero percent APR offered for the first six months of use, allowing you a grace period to get more comfortable.
- Outstanding features. Look for features like cash back rewards, travel rewards, air mileage and other benefits that you can actually use. If you’re using your credit card for purchases anyways, there’s no harm in getting some redeemable perks for it. Keep in mind though that finding a card with zero or low annual fees and APR is more important than rewards though.
So, welcome to that “real world” you’ve heard so much about. Financially speaking, a dorm room and a meal plan sounds so much better than slugging it out with this economic climate. However that diploma has set you free, so budget properly, find a great first credit card and you’ll be on top of your finances.
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