Student Credit Cards

Student Credit Cards

Student Credit Cards

Opening a credit card while you’re still in school is a great idea because it will enable you to build the credit standing required to rent an apartment, lease a car, land certain jobs and save money on loans and insurance premiums after graduation. Student credit cards also tend to be pretty good deals. Banks regard students as profitable future customers, so they are willing to offer them lower fees, better rates and more lucrative rewards than are available to people with limited or no credit.

No Credit History? No Problem

Credit history, like work experience, can seem impossible to get unless you already have some. How do you build a good track record if nobody will give you your first chance?

That’s why student credit cards seem attractive. The name implies that as long as you’re a student, you can get a credit card, right?

Unfortunately, it’s not that simple. In fact, “student” credit cards are something of a myth. You still need to go through the same vetting process as non-students, and it can still be tough to get approved unless you have significant income.

Establishing Credit

While college students may need their own credit cards for a number of reasons, the most important reason is to establish and build a positive credit history. However, if handled improperly, credit cards can have an extremely negative impact, and can result in an overwhelming mountain of debt.

As a student, it’s important to choose a credit card that you can easily manage. Furthermore, you must restrain yourself from overspending, and always pay your balances in full and on time. The best options on the market have minimal fees, yet provide student-friendly benefits, as well as excellent opportunities to build credit.

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