Today, credit card is not a symbol of luxury anymore. Credit card is a great convenience, meaning that you don't have to worry about cash when making a purchase. Even though that the requirements of getting credit card are so strict for students, but many credit cards issuer still giving a chance to let them have their own credit card. Student credit card can be used the same way as a traditional credit card, although it do come with certain restrictions and limitations that other credit cards don't normally have.
Most banks and credit cards issuer requires co-signer for student credit card application to avoid risk in the future. This person will sign on the loan with the student, and will be the person who will pay the bill if the students are unable to do so. Usually parents will be as co-signer to back up when applying for student credit card in case the students cannot afford to do the pay out.
Some company will charge higher rate or APR for student credit card because they want to lower the risk for their company. The card spending limit may be different from one to another that can be between 250 to 800 dollars.
Students, who are planning to make a large purchase, can greatly benefit from using student credit card. To make large purchases, you'll need good credit - which is where a student credit card can really help out. You can use these credit cards to build credit, and establish good credit rating background. Your good credit card rating will be an added advantage when you apply for a loan in the near future.
Student credit card indirectly will teach students about the sense of responsibility. The card works just like any other credit card, although the spending limit is much lower. But once the student has mastered usage of the card, he or she can manage money much better later on in life. This card is great for students to have, and can teach them money skills that will last a lifetime.
Just like traditional credit card, students should also know that student credit card can be dangerous. Even though that it is great, there is possibility such as overspending. If students spend more money than they having coming in, they will be unable to pay their credit card bill, which will then affect their credit. Need to remember that co-signer credit may affect if the credit card issuer goes after them to pay out the bill. Plan the budget every month when you finally decide to use student credit card.
All in all, student credit card is convenient to have. For students, this credit card is more like a freedom and it is a way to teach about financial responsibility. It will be useful especially during emergencies, which the biggest reason to invest in them. If your son or daughter is still studying, you can consider looking into student credit card. It can help your child to establish credit - which will take them farther wherever they go in life.
Which bank(s) offer the best student credit cards?
I'm a freshman in college and I'm looking into applying for a credit card to build some credit. I've already been denied by Chase for their student card. What other banks have good cards for students, or are all the cards pretty much the same?
let me clarify, I have an income. I work in retail. Would that suffice?
Answer
If you are under 21, you MUST either have a parent co-signer or have a job to show you can actually pay the bill each month. Sorry, but this is a new law that is actually helping save you from you, believe it or not.
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Student credit cards are a great way for college students with little or no income to start establishing credit. Although they tend to have slightly higher interest rates than 'standard' credit cards-- they'll give you the chance to prove your creditworthiness and help you build your credit score. Eventually... with regular, on-time payments-- you'll be able to apply for 'regular' credit cards with lower APR's and less fees.
You can find a complete list of student credit cards here:
Hope this helps. GOOD LUCK!