Student credit card: how to choose the right one

by : Michael Huch

A student credit card is the first card that usually people get. These are the cards that companies offer to students in high school and college. The credit limit is usually not high because the company knows that students do not make a lot of money and will not be able to pay off a big credit statement. A student credit card is much easier to handle than a check book and offer more convince in paying for books, tuition, and buying anything that they may need for school.

For parents that are interested in controlling their child’s spending they can get the credit card in their name this way they get the bills and can see if the child is going overboard with the credit card. The parent can then help keep the child from making bad decisions and getting into debt before they even are out of school. Another thing that may help a parent that wants the child to be able to have a credit card for the things they need but don’t want them to go overboard is a pre-paid credit card. This allows the parents to load the card and the student can not spend more than what is on the card.

Remember that whatever you do now will affect the rest of your life. If you go overboard with credit cards and are not able to pay them off every month you will have to pay finance charges and late fees when you are late. If you get into financial trouble with credit cards, it will lower you credit score and you will pay higer interest, if you will decide to buy a house or a new car in the future. So when you get your credit card the wise thing to do is only use it when you have no other choice and pay it off as soon as you can.

When you are looking for a student credit card that is right for you it is a good idea to go to a credit card website that allows you to compare them side by side so that you can choose the ones that is right for you and apply for them online. Like this, you can get a response within 60 seconds, and verify if you are accepted or rejected for any particular card, so you will be able to apply for another one. Chances of being turned down are slim because the credit card company knows that at that age the applicant has little or no credit and don’t have much income. The beigest problem you may have in finding the right interest rate.

In summary student credit cards are good to have for times when you need the cash but you don’t have it. Having a credit card as a student requires a lot of responsibility and restraints. Knowing what you need for school and what you think you need to impress your friends. Being responsible now can mean getting the things you are dreaming of in the future. Getting a credit card with your name on it, but under your parents account is a good way to establish credit history and it will help you in your future to get your own card.