Studying abroad is a great way to experience a new culture and even enrich your life by learning new languages, and traditions, and broadening your horizons. While it may be a rewarding experience for many, it can also be a costly endeavor for a lot of people. This is why you need to choose the right study-abroad credit card to help you manage your finances while you are studying and living abroad.
A student credit card is very helpful as it is primarily designed for students or travelers who make frequent purchases in foreign currencies. With this kind of credit card, you can save money on fees especially when it comes to exchange rates plus you also get to enjoy rewards and many perks as you travel.
Plenty of details shape how these cards work and how to choose one that fits your plans. The sections that follow explain the essentials so you can make a confident decision.
Benefits of Getting a Study Abroad Credit Card
Carrying a credit card offers several advantages for international students, starting with safer transactions. Paying by card reduces the need to hold large amounts of cash and adds protections that help keep funds secure.
These types of credit cards have a heightened security feature where it will monitor all of your transactions so you are always safe. You cannot find this type of security feature with just a debit card.
If the credit card does get stolen or gets lost, you can easily report it and you will have a replacement card in no time. Speaking of security, having a study abroad credit card can also be your financial safety net.
Unexpected expenses can arise at any point during a term overseas, and the card can bridge those gaps responsibly when cash is short. Using available credit for true needs helps keep plans on track while you arrange repayment.
A Better Experience Overseas With a Study Abroad Credit Card
Using a study abroad credit card also means that you simplify how you can purchase or do any kind of transaction with the credit card abroad. You don’t even have to worry about using the card to exchange cash or pay fees when you use foreign ATMs.
A lot of these study abroad credit cards also have very competitive exchange rates and most of them do not even charge you with a foreign transaction fee. Apart from that, you can also use the card in many ways while you’re abroad to better your experience.
Most of these credit cards offer perks and rewards that can enhance your travel experience. You can use the card and earn points that you can then use to book flights, hotel stays, gift cards, and many more.
Requirements in Applying for a Study Abroad Credit Card
If you’re planning on getting a study abroad credit card, there are certain requirements that you need to prepare to qualify for the card. First, you must be at least 18 years old and above to apply for the card.
You must have a source of income that can help you repay your credit card debt. It does not have to be a full-time job but a part-time job, an internship, a scholarship, or even an allowance will do.
You must also have a credit history that shows that you are a responsible credit card owner or that you can pay your credit on time. If you don’t have a credit history, it is best that you start applying for another card such as a secured credit card, or become an add-on to someone else’s card.
You should also provide your identification such as your passport, student ID, student visa, and many more documents. Lastly, you must have a Social Security Number or an Individual Taxpayer Identification Number.
Can You Still Apply If You Have Bad Credit
It is possible that you can apply for a study abroad credit card if you have bad credit but your options might be minimal. It is still best that you try to fix your credit score first before you apply for this card.
A secured credit card will help you fix your running credit score and credit history. It is also one of the easiest cards to apply for those who have a compromised credit score or those who simply want to build their credit score.
This is also the reason why it is best that you check your credit score beforehand so you will know the steps to take to qualify and apply for the study abroad credit card.
Things to Consider Before Applying for a Study Abroad Credit Card
Before applying for this specific credit card, there are certain factors that you should consider first. You must be eligible for the card before you even apply.
You should also think about your spending habits, especially how you will be using the card when you’re overseas and how you can pay it back.
You can try to avoid spending too much or adapt to a lifestyle where you need to spend on a lot of unnecessary things. Look for a study abroad credit card that offers no foreign transaction fees.
These fees can easily add up quickly and can ruin your budget. Lastly, try to research more credit card options. There are a lot of study-abroad credit cards out there and you can find some good examples below.
Check Out Some of the Best Study Abroad Credit Cards Today
If you have already considered many of the factors mentioned above, you should research which study-abroad credit card fits your lifestyle.
The Capital One VentureOne Rewards Credit Card offers an amazing welcome bonus of 20,000 miles if you spend only $500 in the first 3 months of owning the card. It also does not have an annual fee and no foreign transaction fee.
Another great credit card to choose from is the Discover it Student Cash Back which offers up to 5% cash back on specific transactions and 1% cash back on everything else. There is also no annual fee and foreign transaction fee which is great for students. Additionally, Discover will also match all of your cash-back earnings in the first year.
Note: There are risks involved when applying for and using credit. Consult the bank’s terms and conditions page for more information.
Conclusion
Studying abroad will always be a rewarding experience for many students but you should still be careful of your finances. Not everyone can afford to spend a lot of money especially when you’re only a student in a foreign country. The good thing is, there will always be study-abroad credit cards that you can rely on to help you manage your finances overseas.
