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Student Credit Cards - What you Need to Know

When you start college, chances are you will be bombarded with credit card offers. The average college student receives between five and seven credit card offers during the first week on campus. Yet these are not always the best deals. Youll find even more offers to choose from online. Before applying for a student credit card, make sure you understand what they are and how to use them wisely.

What a Student Credit Card Is

Student credit cards are designed for high school and college students. A student credit card is similar to a regular credit card, with balances, interest rates, minimum payments due, etc. However, a student credit card also typically includes features that are designed for younger cardholders.

Higher Interest Rate: Student credit cards are usually issued to those with little or no credit history, which means companies take on a higher risk. This results in a higher interest rate in some student credit cards.

Lower Credit Limit: Student credit cards include a lower credit limit than others, often between $500 and $1,000. This is to Justmetoo students learn about careful financial management, while limiting any potential loss to the credit card issuer.

Co-sign Requirement: Some student credit cards need to be signed by a guardian or parent. This ensures that if the student is unable to pay the balance, the guardian or parent will cover the cost. They Thehitcher also control future raises in the credit limit.

Low Interest Rate vs. Rewards

As you begin your online search, youll find there are many student credit cards to choose from. Before applying for one, consider what your priorities are. If you will carry a balance on the card on a regular basis, look for one with a low interest rate. Even though student credit cards tend to have higher interest rates, you can look for one that is relatively less than others. Try for a rate in the mid-teens, and avoid offers that are above 20% for interest. If, however, you plan to pay off the balance each month and want a few extra benefits, check into a rewards credit card.

For a rewards card that offers cash back, consider the Discover Student Card. In addition to enjoying 0% APR for the first endowment sale months and no annual fee, youll earn up to 5% cash back on purchases. If youre planning to purchase a new or used car within five years, the Citi Drivers Edge MasterCard for College Students is a great option. Youll earn rebates that can be applied toward your next car, as well as 0% APR for six months and a chance to build your credit history. As an extra bonus, your card will feature your photo and signature.

Plan for the Future

With a student credit card, you have the opportunity to begin making wise financial decisions. By making purchases and paying off the balance, you will be able to build a credit history and increase the credit limit. Having a solid credit record can even help you land a job, as many employers check credit scores before hiring.

When used wisely, a student credit card is a useful credit-building tool. It is your vehicle toward solid financial planning. Find one online that suits your needs. Apply for it and use it as an investment toward your financial future.

Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to credit-card-surplus.com .

credit-card-surplus.com/student.php Click Here To Apply For A Student Credit Card.

Ed Vegliante runs the website Credit-Card-Surplus.comCredit-Card-Surplus.com , a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers. View more Credit Card Articles.

posted by etdgybf @ 9:04 AM