Student credit cards

Student credit cards are offered to students for a couple of reasons; one is to help them to build their credit history. The other is to attract future customers. A student credit card can be a great way to learn about using credit responsibly, provided of course that you actually do use it responsibly.

Student credit cards work just like any other credit card except that there are some differences to make them more suitable for students. The biggest difference is that they are designed for people with a lower income than most other credit cards. They require a lower income to qualify and they usually have a pretty low credit limit. This is obviously because most students don't make a lot of money. Having the lower credit limit will also help to keep them out of trouble with credit card debt. At least that is the theory; it doesn't always work out that way.

The other difference between a student credit card and a regular credit card is that it normally requires that you have a parent co-sign for the card. That means that if you don't pay your bills the credit card company will go after your parents to get their money. Obviously they do this because a lot of students run up bills that they can't pay. Having your parents co-sign for the card should make you more responsible since you probably don't want to have to explain to your parents why they are having to pay off your credit card debt.

When you are selecting a student credit card you are going to want to look at the same things that you would look at when choosing any other card. The biggest thing will of course be the interest rate. This is almost always the biggest expense to using a credit card. The other big thing that you will need to look at is the annual fee. Almost all student cards come with an annual fee. Most student credit cards offer some sort of reward program, this can be a nice benefit as long as you use your card responsibly.

The whole point of a student credit card is to allow you to learn how to use credit responsibly without getting yourself into too much trouble if you get it wrong. While you probably won't get too deeply in debt if you screw up with your card you can ruin your credit. A student credit card is supposed to be a way for you to build credit. However that does come with the risk that if you fail to pay your bills you will actually hurt your credit rating. There is nothing worse than graduating from college ready to take on the world only to find that you have a really bad credit rating. Be careful with how you use your card.