Building Your Credit with the Discover Student Card
A credit card can be a handy tool to have around in the event of an emergency. It can also be a tool to help build your credit history for later in life when mortgages and other loans may be needed. If you are a student then the Discover Student Card might interest you, but it is by no means the only student credit card available. You have the choice in choosing a card that will work for you, whether it is for your college expenses or for an emergency.
What you need to know about any credit card is that the companies report to the credit bureaus at least four times a year. Some companies will report each month, while others report each quarter. When the company reports your account is in good standing, they also show the balance on the card and the credit limit. If you keep the card balance below 50 percent of the credit limit, this will help your credit history and in turn your credit score.
Since the Discover student card is an option for students it is important to know what this credit card can offer you. The Discover card provides you with 5 percent cashback bonus on travel, home improvements items, department store purchases, gas, groceries, restaurants, and many other purchases. For students you will find cash back rewards for text books and other school supplies you need each year. At various times of the year there are deals for 5 to 20 percent Cashback Bonus. These specials are often awarded for online shopping at Discover’s exclusive store. Other purchases not named in the Cashback Bonus program can offer one percent unlimited rewards.
The student credit card from Discover also provides 0 percent APR for the first six months on purchases. Any purchase you make in the first six months will not have the APR you have been awarded. If you pay that balance off before the six months are up, you will never pay interest on it. In addition to the purchase promotion rate there is no annual fee, even for students.
Some student credit cards will only award the card for an annual fee. When you look at the promotional rate and no annual fee you are already saving money. To top off the better features of the card is a $0 fraud liability guarantee, meaning any fraudulent charges are not liable by you.
Discover offers a minimum annual percentage rate of 14.99 percent on their Discover student credit card. This rate is variable and can change at any time. Discover is one of the credit cards that is not usually willing to lower their interest rate below the first APR ever offered. What this means is your card will never be below the 14.99 percent, but if it is raised for any reason, you may try to get it reduced back to the 14.99 percent. This will only happen if your credit card is in good standing.
