Education in the United States is a wonderful and life changing adventure for any international student. Among many tasks that a learner is faced with when transferring to a new academic environment with a distinct culture, money management is an essential skill. An important resource in this process is credit card, that helps not only in the accounting of the expenses, but in the creation of a credit history.
The decision of which credit card to apply for can be one of the challenging given the many products in the market. Thus, the goal of presenting this guide is to supplement the choice of the most suitable credit card for an international student by addressing expert recommendations and useful advice.
Understand your needs and eligibility
The first of the first steps in choosing the right credit card is to know yourself, your spending and saving patterns, and your visions for the future. Are you in need of a credit building, rewards, or an emergency card? Now you know what is essential, and what is not; therefore, you will be able to exclude some of the choices.
For example, if someone wants to use the card to purchase normal needs, then a card with proper reward system will be perfect. On the other hand, if your aims are to establish credit, then you may want to go for the cards with lower fees and those that will easily accept you.
Check your eligibility
The USA credit card application experience is quite complex for international students due to several factors detailed below. A number of banks demand an SSN or a credit history which might be a problem.
However, there are credit card companies that issue credit cards to the international students and these may not need SSN or even if they do, the requirements for approval are relatively relaxed. Find out such options that are available. Further, having a U. S. bank account and being a college or university student in the United States can further your chances.
Compare credit card features
Another important factor that one should look at when selecting a given credit card is the expense that is tied to the card. These are the APR rate, the annual fees, foreign transaction fees if any, and the charged up fees for delayed payments. In this vein, cards with lower APRs to charge and no annual fee are most preferable, considering the student may not afford to generate much income.
Foreign transaction fees are an important aspect, should you be using the card within your home country. There are certain credit card that has been designed for students and among the benefits that come with such cards, there is no foreign transaction fees which can save you lots of money.
Rewards and benefits
The actualized concept of rewards programs is rather effective and valuable for students in case they daily make purchases of specific categories that include groceries, eating out, and travelling. Seek for credit cards that have rewards such as cash back, points, or miles on these kinds of purchases.
However, some cards have introductory bonuses, which can be an added bonus or rather benefit in this case. Other advantages include insurance that the travelling member can enjoy, and protection and an extended warranty on products bought. Such benefits will definitely provide extra value to the card and can be a source of more guarantee.
Utilize financial tools and resources
Some of the common features that most credit card companies offer are features that help the cardholder plan for his or her spending better. Some of these can be budget planning and control tools, electrodes, and other related learning tools about credits.
Taking advantage of such tools can assist an international student to be financially discipline and minimize on spending and debts. For example, such credit card has applications that group expenses so that the card holder can easily track where his/her money went in the particular month. This visibility can indeed be of paramount importance in your budgeting prowess.
List of helpful features
- Alerts and notifications: The next steps after organizing the budget are to set alert for due dates, spending and any possible fraudulent activities.
- Auto-pay options: About payment, set up auto-pay to better avoid missing a payment and thereby avoiding late fees or even harm to your credit score.
- Credit score monitoring: The benefit of some of the cards is the provision of the free checking of the credit score so as to monitor the progress in credits.
- Customer service: Some of the features that can be useful include good customer service with such options as round the clock and multi-lingual support which is particularly important for the international students.
Building and maintaining good credit
From the above explanation, it is quite clear that it is only possible to establish a good credit history if this is to be undertaken gradually. You should apply for a credit card with a very low limit or even a secured credit card so that you cannot be easily tempted to misuse the card.
Always spend a small amount that can be easily paid at the end of the month without having a balance which has to be carried forward. Punctuality on the payment dates is one of the factors that play an important role in building credit history. Just one rate of interest payment missed can harm credit rating, so one has to be very careful.
Monitor your credit report
It is advised that consumers also review their credit reports and pay attention to them so that errors and discrepancies can be observed. Users can receive a copy of their credit report once a year from the three major credit reporting agencies which are Experian, TransUnion, & Equifax.
One should immediately report the occurrence of any inconsistencies or any other account without permission. It is also wise and possible to regularly check on your credit report to not only ensure that you are credit worthy but also to see the impact that certain activities have on your credit worthiness.
Conclusion
Selecting the most suitable credit card as an international student in the US depends on your spending behaviors’ tendencies, spending objectives, and the characteristics of cards that are available on the market.
So, after describing your needs, comparing the cards’ features, using the financial tools, and following the creditworthiness practices, you would make the right decision for your financial journey. Do not forget that the proper credit card can be an essential instrument to come out as a successful money manager and credit builder.