Best Credit Card for Students Studying Abroad: Travel credit cards are considered to be one of the most valuable financial assets of a student. Students studying abroad also have to travel abroad so it is better that they have a travel credit card.
The best credit cards come with many features that ensure that students travel abroad with ease and easy payment and are safe. Here information about travel credit cards has been shared so that students do not face any problem while traveling abroad and can avail the benefits of travel credit cards.
Why do Students Studying Abroad Need a Credit Card?
It is however crucial that we first of all establish why students in particular, but individuals in general, need credit cards while they are studying abroad. Here are a few reasons:
1. Convenience
Credit cards are processed internationally, therefore they’re easily used in day to day shopping, for traveling and for use in cases of emergencies.
2. Safety
Having a credit card is safer than having stacks of money with you. If, for one or another reason, the card has been stolen or lost, it can be canceled quickly; as for the frauds, these are often repudiated.
3. Building Credit History
For students, a proper application of the credit card will help build credit history which is important when one is applying for housing, credit or even a job.
4. Emergency Use
Carrying a credit card in our wallet offers some kind of a relief, in case of some emergency that may require immediate expenses for example to travel, visit a doctor among others.
Features to Consider When Choosing Credit Card for Studying Abroad
When selecting a credit card for international use, there are several features that students should prioritize:
- No Foreign Transaction Fees: He added that most credit cards attract a foreign transaction charge of about 3% on anything purchased in a country other than the one that issued the card. Even the last two fees alone can be a nightmare for students learning in a different country/ continent. It shall be most prudent to choose a card that does not charge any foreign transactions fees.
- Rewards Program: The rewards being offered for credit cards include cash back rewards, travel, reward or purchase discounts. By checking whether most travels are business related or the student frequently buys items, a good rewards card will greatly save the student some cash.
- Low or No Annual Fee: Credit card companies may also charge consumers an annual fee for the opportunity to use the credit card. Students have to avoid cards that attract annual fees but in the occasion where they do come across a card with small or no fees, they should not hesitate to apply.
- Introductory APR Offers: Some credit cards come with an introduction offer such as no interest charged for the first month or so. It may be useful to those students who have to keep certain balance for a certain period of time, for instance before or after exams, and all this without any interest charges.
- Easy Approval for Students: But not all students have a good credit score So before applying for the card it is advisable to check the approval standards of the credit card or look for student credit cards.
- Fraud Protection and Security: When choosing the credit card you should make sure that this card should provide a high level of security, fraud monitoring and do not allow any unauthorized purchase with the possibility of zero liability.
Best Credit Cards for Overseas Student ripped
Here’s a list of some of the best credit cards that cater specifically to students studying abroad, offering features such as no foreign transaction fees, rewards programs, and low annual fees:
1. discover it® Student Card Rewards
– No Foreign Transaction Fees: Yes
– Rewards Program: 5% cashback for spending on a list of goods and services that changes every 3 months (up to the amount of the set for the quarter) and 1% cashback for all other purchases.
– Annual Fee: $0
– Introductory APR: 0% for the first 6 months on the purchase, and 17.24% – 26.24% of the variable APR.
– Key Benefit: Discover fully reopen all cash back earned in the first year.
A good example is the Discover it® Student Cash Back card because it aims at the student and provides value for money: it has a good rewards program and no foreign transaction fees. Also, the option of Cashback Match for students who often need to buy something is one more advantage of the Discover card .
2. Chase Freedom® Student Credit Card
– No Foreign Transaction Fees: No just 3% foreign transaction fee
– Rewards Program: Redemption of 1% cash on every purchase made, though you can accrue more through the Chase Ultimate Rewards® program.
– Annual Fee: $0
– Introductory APR: 0% balance transfer fee on transfers made within 60 days of account opening, and 0% on purchases for 6 months, thereafter, the interest rates will be a variable of 19.24% APR.
– Key Benefit: The card member is to receive $50 bonus after he or she has bought something within the initial three months of account creation.
Knowing the fact that this card levies foreign transaction fees, it still is one of the best for students who will be going abroad to study and spend most of their time making purchases online in their local currency or those that are occasional travelers.
3. SavorOne Student Cash Rewards Credit Card
– No Foreign Transaction Fees: Yes
– Rewards Program: 3% cash back for dining, entertainment, and grocery streaming Purchase, 1% on every other purchase.
– Annual Fee: $0
– Introductory APR: Make your first transfer permanent with the latest 0% BT erb offer with no balance transfer fee on your first 60 days of the account opening, for 15 months for balance transfers at 0% plus a BT fee of 3% or $10 will apply, a variable purchase APR of 19.74% – 29.74% and a penalty APR that ranges between 29.99% and 39.99%.
– Key Benefit: High cash back percentages in some of the things a student uses most or often.
This card from Capital One is perfect for college students, especially, if you frequently visit restaurants, theater, or any events. This is made even more unique by the fact that all international transactions involving the use of the card attract no any fees.
4.Bank of America ® Credit Card for Students
– No Foreign Transaction Fees: Yes
– Rewards Program: 1.This is followed by a bonus of five points up to the amount of the total dollar amount for all the purchases.
– Annual Fee: $0
– Introductory APR: 0% on purchases for the first 18 billing cycles you receive a bill, after that the APR is 18.24% – 28.24%.
– Key Benefit: Besides, there is no limit to the amount of travel rewards that you may earn without bearing in mind the categories as well.
This credit card is developed for travellers and therefore it will suit the students studying in other countries. Its travel rewards are truly unlimited and there are no foreign transaction fees, so it can be used for all your daily and travel expenses.
5. Deserve EDU Mastercard
– No Foreign Transaction Fees: Yes
– Rewards Program: 1% cashback on all purchases.
– Annual Fee: $0
– Introductory APR: N/A
– Key Benefit: There is no requirement of credit history for applying for this credit which is good news for international students or for those who have no prior credit history.
Deserve® is an excellent choice for international students who possibly have no credit history in the United States. Other benefits include cell phone insurance and Amazon Prime Student membership for one year, on the card.
Responsible Credit Card Usage While Studying: Some Tips
Credit card is a useful thing but it must be used properly Credit cards are very helpful when used appropriately. Here are some tips for students to manage their credit card wisely while abroad:
1. Set a Budget: Taking a credit card does not mean taking along a wild credit. Decide in advance, for how much money can you afford to spend every month, and try to spend no more than that amount.
2. Pay Your Bill on Time: SO, relying on repayments due means compromising on credit score and high interest rates. After each purchase, refrain from using the credit card for other purchases and pay the issued amount no matter the minimum amount.
3. Avoid Carrying a Balance: It is best to completely eliminate the interest by endeavouring to pay off the full amount on the credit card each month (CC) if possible.
4. Monitor Your Account Regularly: To which you would like to begin observing your spending if you see any unauthorised transactions in your account. All the large banks give their clients applications that enable one to manage how the spend through the money.
5. Understand Fees and Charges: Know and understand any costs that are related to one’s card including the ATM costs and cash cost among others. Do not make purchases using your credit card that attracts high fees.
Things to keep in mind and misconceptions to avoid when applying for a credit card
While having a credit card offers great benefits to students studying abroad, there are some common pitfalls that students should avoid:
1. Ignoring Exchange Rates: As to the translation of the foreign price and other currencies, many students expect their credit card company to give them a good rate of exchange anyway.
This is with regard to the fact that exchange rates do change, and not all credit cards offer reasonable conversion charges. You also have to constantly check the rates and get acquainted with your card provider’s exchange policies.
2. Using ATMs Without Checking Fees: Many credit cards levy very high tariffs in case of cash withdrawal through ATM, especially in foreign countries.
Something you might find useful is figuring out before your trip whether your credit card’s issuer has a programme for connection with international banks and doesn’t charge any foreign exchange fees.
Instead, it is recommended that students should use a debit card that attracts low fees on ATM for purposes of withdrawing cash.
3. Missing Out on Payment Deadlines: Enticing as it may be to explore a new country, the reality of failing to pay your credit card dues on time means that you end up being charged extra for late payment, receiving high-interest fees, and your credit score is marred.
Paying the at least the minimum should not be a problem; paying for it should be through autopay so you never miss any due dates while out of the country.
4. Not Notifying the Credit Card Issuer of International Travel Plans: Still, there is one crucial thing the customer often forgets before leaving for another country – informing the credit card company about the trip.
This helps it not get blocked, or frozen during use in another country, which a fraud detection system would do. All but a handful of issuers let you give travel notices on the Web or via a smartphone app.
5. Relying Too Much on Credit Cards: Having that in mind, students should not apply for credit cards so that they use these cards for all their expenditures. Without any means to keep track of your expenses, you can find yourself in so much debt most of the time.
Using the credit card mostly for rather large and what I would call ‘emergency’ purchases and keeping the daily purse or the debit card for spending so that it doesn’t get to a point that you realize you can’t make the payment.
Credit Cards vs. Debit Cards which is better for students abroad.
The two are good but they are used in different sectors of life of a student who is studying in an overseas country. Let’s consider the circumstances when you need one or another type of card and what advantage will this type of card give you.
Credit Card Benefits
– Fraud Protection: Debit card is far less secured compared to a credit card, owing to the robust protection mechanisms provided in the later. If your card is lost or stolen,
you don’t pay for the lost card and its unauthorized use, those unpleasant transactions will be investigated by the credit card company and you will get your money back.
– Building Credit History: Credit cards are very useful for the student because then they develop their credit rating when they will apply for loans, apply for an apartment, or even get a job.
– Rewards Programs: Credit cards usually come with some form of loyalty, such as cashback, points toward travel or other products, or discounts which can be beneficial if used correctly by students.
Debit Card Benefits
-No Risk of Debt: While credit cards, debit cards have the ability to reduce the money from the bank account and rather than having outstanding balances unlike credit cards which allow people to over spend their balances when they have no money to pay.
This allows students reduce their spending and be able to avoid charges associated with interest.
– Access to Cash: If you are likely to be making regular cash withdrawal while overseas, it means that using the debit card is better since most banks these days have very low or even non-existent fees for cash withdrawals overseas.
– No Credit Check Required: There is no credit check and therefore they do not need to meet any credit history requirements to access debit cards;thus can be issued to international students or people who have not borrowed before.
Contingently, the students might have advantages from having a credit card as well as a debit card when studying. A credit card is generally good for making larger purchases,
in an emergency, and for earning rewards while a debit card is for every day spending as well as for using and getting cash from the ATM.
Choosing the Best Credit Card for Students Studying Abroad Useful Tips
It can be puzzling to decide on which credit card is best for studying in another country but student need to follow certain rules when searching for the right credit card. Here are a few tips:
1. Assess Your Spending Habits
Find out how frequently you will need the card, and for what purposes, such as dining, travel, or internet purchases. Ideally, choose a card that would have bonus features within those spending tiers or a cashback/points for all spending plan.
2. Check for Travel-Related Benefits
Many student credit cards have travel rewards, including access to insurance if you get ill or need to return home suddenly, or car rental insurance. These benefits can be highly useful for the students that will likely be quite mobile throughout their study abroad.
3. Consider International Acceptance
Visa and master cards are however accepted globally while AMEX and Discover may not be accepted at all outlets. Choose the card which will be accepted more in the country you will be studying in and do not forget this.
4. Read the Fine Print on Fees
Be sure to look at the credit card offer’s fine print because this offers information on the fees that it may come with including foreign transaction fees,
cash advance fees, fees for late payments, or fees for balance transfers. Best student credit cards for studying abroad should have least of fees.
5. Look for Cards Designed for Students
Most credit card providers have standardized student credit card for young cardholders or those with no credit report. Such cards are also usually less costly,
have simpler qualification requirements and are often associated with special offers for students based on such incentives as bonuses for good performance, or the tools and applications within the card account.
Best Credit Card for Students Studying Abroad Tips for using
So once you have compared and analyzed and finally chosen the right credit card for your study abroad trip the next step is to get the most value for your money.
Here are some strategies to help you get the most out of your card while overseas:
1. Join up bonuses are additional points that you would have an added advantage of every time you sign up for specific online services.
Student credit cards sign-up incentive are enticing with free cashback on the spending done in the first few months or bonus travel points.
In cases where you understand as you commence your study abroad program, you will spend some a considerable amount of money in areas such as buying airfare,
accommodation, or textbooks, applies for your credit card with a small transaction totalling on the spending threshold to enable you to earn these bonuses.
For instance, some of the cards may include 10,000 points or $100 cash back after cardmembers make an initial $500 spend within the first 90 days.
In the case your credit card comes with sign up bonus, do big shopping early enough to be able to benefit from the bonus.
2. It means as the rewards it is advocated that they should actually be used in the paying for travel expenses.
Let me expand a bit more on it if you have a credit card with a travel reward program and then spend using the credit card to accumulate points then you do not have to spend more money on traveling.
If you do not use your points to purchase such travel necessities and delicacies as air fare, lodging or car rentals or any other travel related service.
This goes well to the benefit of students who wish to visit neighboring countries or make trips during term break.
Debit Cards such as the Bank of America Travel Rewards for Students have no restrictions when it comes to using the points for travel considerations through purchase as these can be used for virtually anything related to travel without limitations to specific airline or hotels among others.
3. It offers an ideal opportunity to make every day purchases with the Card.
If you therefore wish to get the highest possible rewards or cashback, then you should spend on any purchases that you would normally make – food, restaurants,
bills, and even movies. It is just important that you should maintain paying only the balance within the limits that has been set by you and they should be clear within the billing statement so that you won’t have to pay for the interest.
If you spend a lot of money on dining or travel, use those categories to make the most of your card which offers higher cashback rates on those expenses.
4. The likely platform to complement this is Student Discounts.
This way traveller has possibility to combine student discounts of many international merchants and travel providers with cashback/rewards received from credit card.
Anytime you are making a booking for a flight, buying text books or making a purchase online, check if there are special discounted rates for students.
If used with a cashback or travel point credited card, the user will cut down his spending even more.
For example, for instance, if your credit card has a bonus that you get 3% cashback on dining and you receive a student discount at a local restaurant, then you will not only save on the meal you’re buying but also get some cashback.
5. Check Bonuses and Reward Categories and Other Promotions for Specific Periods
Certain student credit cards have fixed bonus categories, meaning that some purchases will reap richer cash back rates at some time of the year than others; for instance,
the Discover it® Student Cash Back. It is helpful to keep up with the general themes so that you can work in identifying where you are getting the most or the least for your efforts.
Also, there are cases when an issuer has some promotions connected with a time of year or has some limited offers. These rewards may be free points for traveling, a particular brand at a cheaper price,
or cash back incentives where there is an achievement of a certain target spending level. Check the app or website associated with your credit card, as they will more than likely announce these sorts of promotions.
6. My travel budget would then be $ 1,250 if spent wisely:
When you are in a new country, the vigor to spend more cash is high due to the numerous activities which one staged across the country.
Although Credit cards are an easy method of making purchases it is advisable to devise a working budget and do some accounting.
The convenience and control that an online credit card bill and payment dashboard offers you means you can see exactly how much you have spent and when you are about to exceed a spending limit,
notification will be sent right to your email or smartphone. It will assist you in managing a monthly spending considerably,
affording you the best opportunity to patronize the credit card while at the same time being financially responsible since all the rewards are earned without overspending.
7. Exchange Rate Fluctuations Should Be Considered
Be aware that while your credit card may not have any overseas transaction fees you might actually lose money because of poor conversion rates.
In most of their purchases they are faced with Pays in home currency or Pays in local currency, currencies. As a rule, it is advisable to select the local currency since using the merchant’s exchange rate is likely to be more unfavorable as compared to that applied to your credit card.
Well, you stand to make a saving by using the local currency, anyway, and you make points on the transaction.
Best ways to maintain your credit score
However, you hardly pay attention to your credit score when you are away from home, even though it is a vital part of your financial life. If you do not do so, then when you return to your country and use the same credit card, your credit score will decrease which will harm you. Here are some tips to maintain and improve your credit score.
1. Make Timely Payments
She said that payment history is the most impactful component in the credit score. One of the most important things to do to ensure that your records of credit worthiness are good is to make sure that for every credit card,
you pay for the bill on time. If you have concerns about a card payment, do not use abroad or simply pay the minimum monthly amount for the credit card.
2. Avoid Carrying a High Balance
It is also beneficial to keep your credit card balance used low in comparison with your credit limit. While using these cards avoid exceeding a third of your credit limit as this is measured as your credit utilization ratio.
This makes the lenders to appreciate the fact that you are not so much into credit and thus you are solvent.
3. Monitor Your Credit Score
Most student credit cards entitle you to free checks of your credit score on the card’s website or in the accompanying app Consumers can thus check their score regularly to understand the impact of their practices on their credit scores.
In case you find some of them to have dropped drastically, then you can take a step to work on it and be finding a solution to the problem before it gets out of hand.
4. Do Not Open Numerous Accounts
It is always attractive to be applying for more credit cards with the purpose of earning some more points, but certainly, many accounts will pull down your credit value.
Every time you apply for a new credit card, this is a hard enquiry and it decreases your score a little. If at all credit cards have to be used, one or two of them should be used during the time abroad so as not to worsen the credit score.
5. Keep an Eye on Credit Card Fraud
They also pointed out that there is always a high possibility that one may fall victim to credit card fraud whenever he or she is traveling abroad.
Do not sit back waiting for a notification from your card issuing bank that your card has been used by an unauthorized person.
Almost every issuer provides immediate notifications, if there is any suspicious activity or using services that will notify you of any fraudulent transaction made.
You also need to contact your credit card issuer if the card is lost, or it gets stolen to avoid been held responsible for the charges.
Student credit cards also offer zero-liability card fraud with which you cannot be charged on any fraudulent transaction.
Summary of Best Credit Card for Students Studying Abroad
It is very important for students to choose the best credit card while studying abroad. Which makes their travel easy and it is very beneficial, so choose the Best Credit Card for Students Studying Abroad which makes your travel easy