Should I cancel my college card once I get my first job?

It is all dependent on your situation if you need to cancel your credit card once you get your first job. If you like the rewards program, APR, or fee structure you can keep using your student credit card. Also, your student credit card might be equivalent to a non-student credit card issued by your bank. Contact your issuer to see if you are allowed to reclassify your card as a non-student credit card. Keeping your student credit card can help maintain a long credit history which can make it much easier to apply for other credit cards.

Canceling your credit card comes with various benefits.  If you want to have a higher spending limit then a student credit card might not be for you. For instance, with a new job, you will be getting a steady income and maybe you want to increase your spending to accommodate your new lifestyle. Looking to cancel your student card is all dependent on the situation you face, your credit score, and how comfortable you are transitioning into a new credit card. 

Why would I want a new Credit Card?

One reason you would want a new credit card is that the credit limit on your student credit card is too low. Typically, students have lower spending limits in order to discourage students from spending more than they have, but with a new job, you may be able to spend more than your current credit card has to offer. Now that you have established a good credit score and have a job, it is likely that you will qualify for a card with a higher credit limit. This can help you jumpstart your life and make the big purchases you need.

You may also qualify for better rewards cards now that your credit score is established. You can switch to a different card if you are unsatisfied with your credit card’s rewards and want something that will assist you more in your daily purchases. If you feel you need a bigger rewards rate to help you save money then you should consider switching. 

Why would you want to keep your existing card?

With a new credit card, there is more potential for debt if you do not keep track of your spending. Upgrading your credit card gives you more room to spend and if this encourages you to overspend this could put you into debt and tank your credit score. Make sure that you have a responsible plan in place before you decide to upgrade your card. 

One of the main factors that go into your credit scores is the age of your account. The longer you can keep a credit card open, the better, so it might be detrimental to your credit score if you cancel your student credit card. It is important to see whether cancelation will affect your credit score heavily before switching to a new card. 

Takeaways

The most important aspect to consider is whether or not canceling your card will benefit you in the long run. You may eventually have to cancel your student card but there are many other alternatives to cancelation that you could consider. If you feel that your student card is not cutting it anymore, then it may be time to switch to something better. Make sure that canceling is the absolute best option before going through with it as it can have effects on your credit score.