Getting a student credit card for your son or daughter has many more advantages than disadvantages; it's a first steep to building credit while in college. Getting a student credit card enables students to slowly build their credit, assuming they pay their bills on time every month. Good credit history will help them when they need good credit to apply for car loans and to pass credit checks when they rent apartments or residences after college. A basic credit building tactic involves getting a student credit card and staying within the credit limit to purchase clothing, school supplies, food and other essentials while at school ? and making prompt payments when the bills come due. Make sure you son or daughter is responsible enough to use it wisely. If not, you might want to hold of on getting them one as their credit history will be with them for the rest of their life. They need to learn about the importance of being smart with money; this is one of the most important life-lessons that parents can pass on to their children.

When choosing the right college student credit card, look for the company offering a longer grace period so that you more time to make payments for your expenses, before accruing any interest on the balance. Credit card companies are anxious to acquire student customers, since they know that a good borrowing experience early on can earn them customers in the future. So there is no shortage of offers for both secure and unsecured credit cards in the mail. If you are a college student, whether in your first year or getting ready to graduate, one thing you need to start thinking about is your finances. One of the best ways to start building up good credit is to go ahead and get a student credit card. There are two types of student credit cards that you can get. An unsecured student credit card does not require that you pay any money up front. With an unsecured student credit card, you can usually request a credit limit increase after 6 to 12 months of timely payments of at least the minimum due or more. There are a variety of great benefits to having a student credit card.

Student credit cards have notoriously high interest rate and finance charges can accumulate easily. Interest is charged at a percentage of the overdue balance. Interest rates have been up lately and the lower interest rate cards have been few and far between, even to those with high credit scores. Your child will learn about interest, particularly if he or she is paying the bills. In fact, the only real difference between a student credit card and a regular credit card is that student credit cards have higher interest rates. Over time the interest keeps adding up and eventually if the student is only paying the minimum amount due they are in reality only paying off the interest and their credit card balance is never going to be paid off. Explain to your student that if they fall behind in payments, the credit card issuer will increase their interest rate. When credit cards were first introduced, they were a pretty simple proposition: use your card for purchases, and be charged a single rate of interest on your unpaid balance. Then came the rise of the ATM (cash machine), and credit card issuers realized they could lend money by allowing their cards to be used to withdraw cash on account, and could earn more this way by hiding away a higher interest rate for cash withdrawals in the credit agreement small print. Not to forget the different interest rate often charged for overseas use.

Students not only have tuition costs, but the cost of books, meals, gas, cell. A credit card for college students also provides you with the opportunity to learn how to budget your money and handle your finances as well. For students who are trying to get started early on achieving good credit, a student credit card is a great option. Many students can be tempted by what is apparently "free money", without thinking of the consequences. Likewise, late payment fees can be an eye opening experience for many young students. It's therefore essential that students always pay at least their minimum payment due on time and avoid late payments to build and keep a good credit rating. Track Spending: Students can effectively track their spending by reviewing and storing the monthly credit card statements that will be sent by the credit card company. This will help students understand the importance of budgeting and record keeping.