Student Credit Cards
Student credit cards are a bit different than your standard credit card offers in that, in most cases, they are issued to individuals with no prior credit history. But with that said the credit card issuers know full well that today’s college student is tomorrow’s gainfully employed (hopefully) consumer.
It is vitally important that credit cards are used responsibly as the individual begins to establish their all important credit history. It is also important that the applicant completely understands the terms and conditions set forth by the credit card company including interest rates and fees before they apply.
As you can see there are quite a few features to consider. Many of the cards offer rewards on purchases, as well as bonus points, and in some cases discounts. Cashback rewards are always popular and can be an effective way to save money.
Some important things to keep in mind when considering student credit cards are the annual percentage rate (APR) and any and all fees that are applicable. These two factors are more or less the cost that one agrees to pay for the benefit of having their credit card account.
It should also be pointed out that the newly passed credit card reform act deals specifically with college students and credit. There is no question that some students have found themselves in debt because of the easy access to credit.
Basically, the reform act states that a student must show that they have the ability to pay their bills responsibly and on time. If they do not have an adequate income stream then they will be required to have a cosigner in order to open up a credit card account.
This usually means that a parent or relative with a strong credit history will be required to take responsibility along with the student. Joint credit cards are another option. That is when a parent puts their kid on their credit card account and are issued their own card with their name on it.
It must be understood that whether it is a card with a cosigner, or a joint credit card account, that all of the individuals on the account are responsible for the debts incurred. That also means that the credit records of all parties can be affected as well.
Other options include prepaid, secured and debit cards. It is wise to take a look at all of these types of cards in order to make an informed decision that best meets the needs of the individual student.
Carefully review the terms and conditions before completing any application. Student credit cards are a wonderful way to begin building a strong credit score that will serve the student well throughout their lifetime.
Related Information:
- Student Credit Cards – Are They Right For You Student credit cards are not ideal for every student. Find out if they are right for you....
- How To Compare Student Credit Cards Online A video presentation that's all about how to choose the right student credit cards by comparing them....
- Student Credit Card Application – Tips for Getting Approval Tips and information on how to submit a student credit card application...
- Student Choices for Building Credit Find out how students can build a strong credit rating. Student credit cards are but one choice amongst several that can help....