And You Have Your Student Credit Card To Thank

Category: Finance, Credit.

Typically, the life of a student involves a lot of expenses. But for those who want to prove their independence, and take care of their own financial problems, the very first card that you may want to find in your wallet is a student credit card.

And if you are attending college away from your family, having a credit card is always handy just in case you need to make emergency purchases. Before, applying for a credit card with no established good credit history is difficult. If you are a qualified student from an accredited university, you can avail of cards offered by reputable banks in the state. That was then, now is very much different. Student credit cards are especially designed for students, it is similar to any card, but it has more restrictions compared to regular credit cards. In case of a loss, the amount is spread over the entire student population. Some of these restrictions include: almost all student credit card holders are first timers when it comes to having their very own credit card, and in order to limit the banks risk, these banks limit the credit amount to as low as$ 500 and to a maximum of$ 1000. some issuing banks require a co- sign from parents or guardian. interest rates charged for student credit cards are quite high since they do not have a proven credit history yet.

Having a credit card is good, and students who have cards enjoy much of its benefits. While it is most exciting for most students to have a credit card, others may find it scary. But it doesn' t end there, the students should also realize that credit cards offer a great value accompanied by a greater responsibility. This is the initial step to responsible adulthood. Nowadays, the credit card choices being offered to students are no longer limited to high APRs, and high fees, no benefits. At an early age, the student must learn to take care of his/ her finances by using the credit card wisely and build a good credit rating.

Issuing banks also offer reward cards to give students the opportunity to make points for cash back, entertainment rewards, merchandise, and airline regular flyer. These cards usually have no annual fees. Some credit cards offer the students zero percent interest rates for a period of six months and maximum cash back of 5% on eligible gasoline station purchases, and drug stores, grocery stores. And these features are just recently introduced to the market. Statistics have proven that most student credit cards are kept long after graduation, which provides the bank issuer an enormous customer value. So the student can expect extraordinary features of the new phase of student credit cards.

The students also benefit a lot from student cards. They will be given an opportunity to build a good credit history. A students life is accompanied by frequent spending on tuition fees, rent, books, road trips, and food. A students years in college are a time for growing up, and choosing the, finding ones self right direction. Once you have a good credit history, you will encounter no problems in making credit card applications after you graduate. It is therefore critical to build a solid financial record by using your credit card responsibly.

And you have your student credit card to thank