Credit Cards

Credit cards seem to always make students nervous because of the stories they have heard where adults misuse them. However, they don’t have to be scary. When used properly they are actually really helpful, especially for travel, and can benefit you in more than one way.

Many banks have student credit cards, which often have lower spending limits, no annual fees, and often no foreign transaction fees. They can offer reward points as well, which may not be as great as larger cards, but still provide extra incentive for being responsible. These types of cards are a great way to start earning credit and learn how to manage finances. This list provides examples of student credit cards with basic information about each of them: https://lendedu.com/blog/student-credit-cards/. Contact your own bank and ask if they offer something similar if you would rather work with a financial institution you already have an account with.

If you already know a little about credit cards or already have one, then you may want to look for something beyond student cards to potentially earn larger rewards. Since you are going to be making large purchases like your flight, opening a new card could help you rake in the rewards. There are a variety of cards that give extra bonus points if you spend a certain amount in the first few months. Buying a flight on a card could help you earn enough points to use for your weekend trips while abroad. In this blog by an experienced traveler, he writes about ways he uses points to help him travel cheaper and he even points out his favorite cards in different categories: http://www.nomadicmatt.com/travel-tips/picking-a-travel-credit-card/.

Personally, I got a Capital One student credit card a few months before my study abroad trip. The description actually stated that the card was perfect for studying abroad. Although the limit was very small (not enough to cover an international flight) the no foreign transaction fees was my favorite part. During my trip, I usually set at time at the end of the week to pay off my balance so that I would have room for purchases the following week. It definitely saved me a lot of foreign transaction fees and got me enough cash rewards to buy a few extra souvenirs. Chip cards and even more advanced card technologies are used everywhere in Europe and rarely is there ever an option to swipe your card. I had to make sure to get a chip card before leaving.

I will note however, that when I went to Asia the following summer, the credit card was not as useful for everyday transactions. In Europe I was able to pay for food and shopping with a card most often, but in Asia, I used my card for flights and some stays, but otherwise used cash. No matter where you are, having cash handy is a good idea, but if are able to use your card, you can help build your credit and get rewards.