Student Credit Card Basics

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Author: ASAP Credit Card

Article source: http://www.articledeshboard.com/. Used with author's permission.

Although anyone can apply for one of these cards, they're generally meant for college students but may also be used by high school students. Although cards are easy to get, the card companies typically charge heftier fees and interest rates, and smaller credit limits, with these cards. Here we will share the basics of student cards.
Young adults generally have no established credit history. With their limited experience, credit card companies often frown upon approving young people credit. However, those who are attending college demonstrate a degree of maturity and responsibility with their focus on the future that gives companies a bit of assurance that you will be able and willing to take care of your debts. Also, parents are often willing to come to the rescue to pay the bills, especially if they're co-signed on the cards.

Two Types of Credit Cards
• Secured Credit Cards - The money you will be spending must be deposited in advance with the bank. There are also cards available that allow parents to link a child's card to their accounts, or let them keep refilling the teen's or student's accounts as they go along. With this type of card there is no risk of accumulating long-term debt or interest. It will cost an enrollment or annual fee and additional fees each time money is added to the card.
• Unsecured Credit Cards - This is an actual loan from the bank with no deposit of funds required. Interest is applied to balances carried from month to month and is often substantially higher than other credit cards. Much harder to get approval than a secured credit card.

How to Get Approved for the Best

• The lowest APR card will help when a balance must be carried from one month to the next. An interest rate in the mid-teens is reasonable for students.
• A long grace period will allow for a longer period of time before you have to pay interest.
• Look for a 'no annual fee' offer.
• Employed students are more likely to be approved as it shows responsible behavior.
• Be truthful on your application. It will diminish the probability of getting the best student credit card as the company will verify all your information.
• Look for budget and payment guidelines and education tips that are offered by some companies.
• Online account access is a plus to easily keep track of balances and payments.

Using Student Credit Cards Wisely

Begin with a budget that can be easily managed each month and stick with it. Even though new credit card consumers are typically offered a limit of $500 to $1,000, limit yourself to what you can repay each month. Safer than cash, use your credit card to purchase student necessities.
Student credit cards that include rewards are available through major issuers like Citibank and Chase who has partnered with retailers like Starbucks, Amazon, and the Gap. Be careful that the rewards don't entice you to spend outside your budget just to earn the reward.

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