With the advent of credit cards, most people would always be looking into someone's credit history before they can approve anything.
They even insist that without a credit history, people tend to become a total outcast in the society, someone who is not worthy to enjoy anything and everything without a credit history. That is why most college students would struggle just to get one.
But what makes the student credit card different from the other credit card? Why is it that it is highly classified as ?student credit card,? and not just any credit cards for that matter?
Basically, student credit cards do not make such big difference as compared to the other types of credit cards. However, because it is a student credit card, the benefits stated therein are completely focused on providing the student's their basic needs.
Moreover, student credit cards are entitled to lower interest rates especially for students who have good grades. They can negotiate their interest rates for a lower rate provided that they pay their balance dues on time and that they maintain good grades.
On the other hand, student's credit cards are actually secured credit cards. But the difference that sets the students credit card apart from the other credit cards is that their parents can set the credit limit.
Also, parents can let their child's credit card to hook up with them so that they can keep track on their child's credit transactions.
Another thing that sets the student cards apart from the other credit cards is that the student credit cards are mainly focused on and quoted for students only considering the fact that they have limited credit history.
Normally, student credit cards have no annual fees and have credit limits that are only set to $500. And according to some surveys of financial institutions, the average student credit card annual percentage rate is 17.66% for purchases and 19.67% for cash advances.
So, even if student credit cards are different from the other credit cards because of its considerable interest rates, it is still a credit card. Thus, students must really be responsible in handling them; otherwise, they are bound to suffer bad credit history in the end.
College student credit cards can become both a blessing and a curse. They are a wondeful financial resource for high school grads just starting out on their own, but they are also a temptation that some students just can't resist. If you want to make sure you don't make the same mistakes so many other students have made with college student credit cards, follow these five tips.
1. It's Not a Loan
When you become the recipient of college student credit cards, don't look at it like a loan. Never charge more than you can pay off at the end of the month (unless it's an emergency) and definitely don't look at it like a license to go on a shopping spree.
The purchases you make with your student credit cards will add up quickly -- more quickly than you may realize. If you bite off more than you can chew, you may find yourself in financial trouble before your financial future even gets started.
2. They're Not for Sharing
So you have one or two college student credit cards and your best friend doesn't have any. Real friends share, right?
Wrong!
Never share your college student credit cards unless you're willing to be responsible for paying for the purchases your friends make. Nothing can break up a friendship faster than fights over finances.
Do yourself a favor and keep your college student credit cards in your own wallet.
3. Mommy and Daddy Are Not An Out
Don't be tempted to get in over your head with your college student credit cards because you think mom and dad will be there to bail you out if you run into trouble. College student credit cards are the first step into your adult financial future. Mom and dad have nothing to do with it.
4. Do Not Charge School Expenses
You may be tempted to use your college student credit cards to pay for school tuition or books. Don't do it. That's what student loans are for. College student credit cards carry a higher interest rate than student loans, so if you use them for education expenses, you're throwing away money.
5. The Due Date Is Not a Guideline
When you start using your college student credit cards, realize how important the terms and conditions are. Make sure your payment will reach the bank well before the due date (the due date is not a guideline, it's written in stone) and don't go over your limit.
If you default on your credit card's terms and conditions, you're going to be hit with ugly fees and your interest rate is going to take a hike skyward. Manage your college student credit cards wisely and respect the responsibilities you have been given.
It's true -- college student credit cards can be overwhelming. Don't let it scare you. By keeping the above tips in mind, you'll be well on your way to managing your college student credit cards responsibly and building a respectable credit history.
Both Nicky Pilkington & Max Anderson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Nicky Pilkington has sinced written about articles on various topics from Credit Cards, Mastercard Credit Card and How to Sell on Ebay. More information about credit and credit cards is available at . Nicky Pilkington's top article generates over 90500 views. to your Favourites.
Max Anderson has sinced written about articles on various topics from Credit Card Offers, Credit Cards and Business Credit Cards. For more tips on getting the best , saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website th. Max Anderson's top article generates over 49500 views. to your Favourites.