Why should this scare your current credit card company? Because you can opt to transfer your balance to another card, and with the lower interest rate the old credit card company stands to lose some major money.
Other things that one should consider when choosing a student credit card is any available grace period for payments. A grace period prevents one from accruing extra charges for paying the balance of their card on time. Some cards actually punish you for paying the balance in full because this prevents them from making a profit off their interest rate.
Lastly, beware the annual fee. AmEx cards are infamous for having some steep annual fees. Charge cards will require you to pay an annual fee because they are not profiting from interest rates—they don’t have them. There are very few credit cards that carry an annual fee, but it is still something to consider.
Before choosing any credit card in particular it a good idea to consult a professional such as a debit or credit counselor at your local bank branch. This is a service that is usually provided for free; that’s a zero percent rate you won’t have to worry about.
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