Tag Archives: student credit cards

Credit Cards for Students Explained

Whether one likes it or not, the fact is that credit cards are slowly and surely becoming indispensable parts of modern lives. The convenience that a credit card provides is making them really invaluable in making purchases and availing of the other benefits they provide. Surely then, students would not like to be much away from the lure of the credit cards. Today student credits are becoming almost as popular as the credit cards meant for adults.

Student credit cards can be used in much the same way as the adult credit cards can, but there are certain restrictions. For student credit cards, a parent or a guardian generally needs to cosign. This is to ensure there is backup in case the student is not able to meet up with the payments. The limits on these cards are also lower than on adult cards. Student credit cards seldom go beyond credit limits of $500 to $1000. In addition, student credit cards have higher rates of interest for two reasons: 1) because students may not be able to pay off their bills and 2) students do not have any credit ratings to show.

However, there are many plus points to student credit cards. One of the most important ones is that students can learn finance management from a very young age. Parents must encourage their children to become wholly responsible for the payments on their credit cards. This ensures that the student would grow up to manage his/her incomes better. Another thing is that the student would be able to build up a credit record from a very young age. Of course this would depend on how efficiently the student manages to make his/her payments on the credit card in time.

The best thing a student can do is to make a budget in the beginning of the month. This should take into account how much the student can afford to spend on the credit card. Making a realistic budget and then sticking to it will make the credit card a very efficient tool in the hands of the student.

It is not necessary to be intimidated of student credit cards and to reject them for that reason. On the contrary, the best thing is to buy the card and then make proper efforts to make the payments. In this way, the student will always have money to get what he/she wants, like a movie or a concert ticket, a new pair of jeans, or even a new cell phone. Treating the card with respect from the student age could be a major leap in learning how to live with financial independence in later life.

College Student Credit Cards: Friend or Foe?

There is much debate surrounding college student credit cards. Some swear up and down that they’re a disaster waiting to happen while others vehemently object and insist they are a must-have financial tool for college students. Which side is right?

When deciding whether college student credit cards are good or bad, you need to weigh the facts. These three truths will help you come to your own conclusion.

1. Aggressive Marketing

College student credit cards have gotten a bad rap when it comes to their marketing tactics — and some would say that it’s for good reason. You can’t hit a single college campus without coming across at least one application for college student credit cards.

That being said, while the applications are definitely readily available (to put it lightly), no one is forcing college students to sign the application. It’s the responsibility of a parent to instruct their children on wise financial decisions.

The credit card companies are marketing their product — that’s what they do. Parents need to do their part and make sure that they instruct their children in the ways of the credit world.

2. They’ve Got to Grow Up Sometime

Everyone has to grow up sooner or later and college student credit cards can provide some priceless lessons in the world of adult finance. For the first time, college students can be responsible for their own spending and their own monthly bills.

Yes, college student credit cards can provide the potential for disaster (but so can a number of situations that students encounter in college). Just because student credit cards have the potential to be misused, it doesn’t mean that they will be. Have some faith in today’s college students!

3. Paving the Way

Once a college student graduates, they’re going to need some things (a place to live and a car to name a few) and they’re going to need credit to get the things they need. If they don’t start building their credit history in college, when are they supposed to do it?

If a college student wants to be completely prepared when they graduate, they’re going to need to work on building a solid credit history while they’re in school. College student credit cards can be the means to that end.

If you know a college student (or are a college student) who has been debating about whether college student credit cards are good or bad, consider the above three facts and remember, it’s not college student credit cards themselves that are good are bad — it is who is using them and how they are being used that make the difference.