What happens to my Student Credit Card After Graduation? Life after graduation from college can be very challenging especially when it has to do with money and credit. Student loans come with clear instructions on what to do as soon as you graduate from college.
But, that’s not the same with a credit card. You may be thinking, now that you are done with graduation, what happens with using your student credit card, or do have to replace it with a Normal credit card?
What Happens To My Student Credit Card After Graduation
Keeping your credit card after graduation depends on your credit card issuer. Many lenders allow graduates to keep the same cards they had while in college. With complete perks, including benefits and rewards. However, you should find out from your credit card issuer. Some card issuers like Discover will allow you to continue with the student card after graduation. The only changes after notifying them will be that Discover’s System will classify your account – the “Student “.
Do Not Cancel Your Student Card After Graduation
It is advisable not to cancel your credit card, after graduation without exploring your options first. If your student card is the oldest card that you have, canceling it could reduce the length of your credit history, which is a factor in your total credit score.
Increase in Credit Limit
As a graduate, do I qualify for a higher credit limit? Receiving an increase in your credit limits will largely depend on your income. Students’ credit cards are usually issued with a lower credit limit that reflects the high-risk students with no income or low income can bring to credit card issuers.
After graduation it is a good period to increase your credit limit Your credit card will be updated, adding additional information from you such as your new income, and expenses, date of graduation, contact information, and housing information (such as mortgage payments or rent, income, etc. Updating your information enables your card issuers to consider you for an increase since your ability to pay has increased with a higher income. This can be done online or on your smartphone.
What Happens to Perks already earned
If as a student you have not redeemed your perks earned, some credit card companies allow you to transfer them to other cards. Contact your issuer for inquiry on this.
But with some credit cards like Discover it®, Chrome for students card, the Cashback bonus you earn never expires, and you can redeem them in various ways. And if you don’t use the card for 18 months, or if it’s closed, your account will simply be credited with your Cashback bonus balance.
Ask Your Issuer for a Different Card
If the student card that you are making use of does not offer appealing rewards, or If you are interested in a particular card from that same issuer. Ask the company to help you convert the student card to a different card offered by it.
Some credit card issuer usually offers to upgrade your card without waiting for you to ask. Let’s say, if your student card is not offering a reward program, then your card issuer might be willing to convert it to a cash-back credit card or a travel rewards card.
The advantage here is that you would still be able to benefit from your student card’s credit history without getting stuck with its drawbacks. Right in your credit report, the account would most likely date back to when you first launched your student card, not when you got your new card, but you get to enjoy a brand-new set of perks.
Other Credit Card Options
There’s bound to be a change after graduation. There are lots of other credit cards after graduation that you can explore. There might be another card to suit your post-graduate lifestyle and needs. Contact your credit card issuer to assist you in getting a good option for you. This could mean converting your student card or getting a similar or totally different card.
Finally, using a credit card as a student responsibly should be a habit to carry on into your new life of post-graduate. This will help build your credit. Continue to make payments in full and on time, such as payment when due.