Whats Special About Student Credit Cards?
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by: barrywaters
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Word Count: 438
If youre a college student and youve been bombarded with ads for student credit cards, youre probably wondering whats different about them. After all, the bank offers student checking and savings accounts with options tailored to a students needs. What about student credit cards is specially tailored to your needs?
The most important difference is that its easier to be approved for a student credit card. Regular credit cards are choosy about the credit histories of the people they approve, and usually require them to have a solid source of income. When you have barely any credit history and are too busy with school to hold down a full time job, meeting credit card issuers demands can be a problem. However, student credit cards are designed to take this difficulty into account. Some require you to have a cosigner, usually a parent or guardian, whose own income is high enough to assure that the credit bills will be paid. Other credit card companies dont ask for cosigners. If a card you are considering requires a cosigner, take into account that the cosigner will have access to all the bills and will know what you buy with the accounts credit. If that doesnt bother you, then cosigning for a card offers you more security. But if you prefer your privacy, then pick a card with no cosigner requirement.
Student credit cards sweeten the deal by offering money back on purchases you charge to the card. You could get back as much as 20% if you buy at the card companys partner retailers. That can add up to some remarkable savings. Just check beforehand to make sure the stores you can save at are the stores you like to go to.
The tradeoff for being able to get a credit card without a guaranteed income or a credit history is a slightly higher interest rate. Student credit cards generally have interest rates at least a few points above the going market rate. Shop around to find the best value, and dont be misled by promotional offers of 0%; the real interest rate is much higher. While a higher interest rate can add up in fees over time, using your card responsibly will offset that. Keep a low balance and pay your bills on time religiously so that when you leave school and get a job, it will be easy to trade your student credit card for a regular card with a lower rate. Related Student credit cards -- Low interest credit cards -- Secured credit cards --
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Learn more about student credit cards, try getsmart.com/credit-cards.
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