New credit card laws have had students in a tumult and many are displeased at the fact that students under 21 can no longer get a credit card on their own. Chief Executive officer of Low cards.com, Bill Hardekopf, says that such regulations are necessary. It offers protection from the aggressive marketing of credit cards on campus restricting availability of credit for the student population.
Credit cards are a huge move towards independence and freedom for college students who are away from home ready for a new and exciting life. When they understand the responsibility and the use of credit cards well then they are better equipped to deal with credit cards according to Hardekopf.
There are of course other ways to get the credit cards for students
For those under the age of 21 a credit card is a feasible option if they have a proof of ability to make the payments every month or of they can get a co-signor. Co-signing can have repercussions for both parties and should only be considered if the student can use the card responsibly and pay off the debt on time. Else the co-signor will have to pay it off before it affects their credit reports.
Debit cards for students: When a student has a regular checking account they can have a debit card which will prevent any overdraft fees from being tabbed up. When the account balance drops below a specified norm there can be email alerts to notify the same. This option however cannot help in building credit scores and would not suffice in the event of any emergency.
Prepaid cards: This is another popular option available everywhere including grocery stores. With these cards, there are other fees involved hence it is important to know the terms and conditions well before getting them.
Secured cards: These are cards which come at higher interest rates and also have additional fees which need to be settled on a monthly basis. This is easy to get as they have a prepaid deposit that secures them. Also make sure the card reports go to the credit unions. Public savings bank and Orchard bank are good options that will help in this case.
With numerous options available to students, the cards are becoming popular, although some laws are making it difficult to get credit cards. Once a student is confident of being able to pay bills on their own and to handle the balances responsibly they can apply for a proper credit card.