Credit
Cards and Student Credit Cards
When you go to college, bills rack up. You need to be able to cover
those bills and be able to have your fun. Sometimes that part time
job isn't enough, or mom and dad can't send you cash anymore. Who do
you turn to? - Student credit cards.
Student credit cards differ from regular
credit cards in the sense
they are made specifically for college students (some accept high
school students), and they have lower spending limits.
So, what is a student credit card?
Student Credit Cards are made especially for college students,
normally enrolled in four year colleges, but sometimes, community
colleges for two year degrees and certifications. A student credit
card is given to students, but at much lower limits than regular
credit cards. Student credit cards range between $300 to $1,000
worth of credit line, depending on the student's personal credit at
time of application. One good thing about these is they offer a
chance to build good credit.
A student with a student credit card can use it just as if it were
another credit card. Students don't usually start out with much
credit, and this allows them to build their credit through charges
placed on the student credit card. By making charges and paying on
it regularly and monthly, students have a chance to build their
credit and graduate with great credit and a degree. But great and
good credit only happens to those who work for it and pay their
bills on time.
Student credit cards are a great way for college students, who are
getting ready to make an appearance to the world and be good
upstanding citizens, to make themselves a history of credit. It
helps the student immensely if they are trying to purchase a house,
a car, or even apply for a better job.
Some tips to remember when getting a student credit card:
- Students should assess and reassess their own
finances. Learn how much they spend versus how much they make, and
if they can afford a student credit card.
- Bad things show up and stay on your credit
history for up to 7 years. This may not affect you now, but what
about when you get out of college and want to buy that brand new
car?
- By taking control and making a budget, students
can understand how much they need to pay off every month.
- Have an emergency jar with extra money, or an
emergency bank account. This is especially important in case that
student happens to become unemployed - this will help the student
from racking up credit card debt from trying to cover expenses.
- If you did not follow these rules, or somehow
your payments got to be more than you could handle, think about
going to a loan consolidation company. This will save you more in
the long run, although you will be amazed at how much will be saved.
Remember to look for important things when you are
shopping for a student credit card - things such as the lowest
possible interest rates, fees from the card, rewards you get from
using this student credit card, and balance transfers. The best way
to save money is not to spend it.
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