Student credit cards and their distinct attributes

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Credit Card Applications » Research » Guides » Building Credit History » Student credit cards and their distinct attributes

Student credit cards and their distinct attributes


Updated: December 26, 2012

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Student credit cards are being offered by a lot of credit card issuers to capture the young customer segment which comprises of a large group of people with substantial spending. More and more credit card companies are approaching students in spite of the fact that students don't have an income of their own to be maintaining a credit card.

Why student credit cards?

From the perspective of a student, credit cards while in college are easier to get, than once you are out of college and without a credit history of your own. With a student credit card, you can build up a decent credit history which will help you get better deals once you are out of college. In fact, the credit history can even help you get a student loan for higher studies at lower interest rates. Students do have a substantial expenditure which includes shopping to a great extent. Most of the students also have regular pocket money which means they can maintain a credit card without going overboard with the expenses. In a way they are making their expenses count by building the credit history, which should be fine as long as they pay the monthly bills on time.

Rules for student credit cards

Student credit cards are different from other cards because of certain rules. To start with, student credit cards cannot be given out to those under 21, without a guardian co-signing on the card. The alternative is for the student to show income proof that he or she will be able to take care of the obligation. This makes getting student credit cards below the age of 21 difficult. Also the latest rules are against credit card companies going to the campuses to woo the students to open new card accounts. This means credit card issuers cannot attract students at college campuses with tangible gifts anymore.

Benefits for the student and parents

If a parent or guardian has to indeed co-sign the credit card, they can keep a tab on the expenses of the students. Moreover, the credit history too will either benefit or trouble both the student and the co-signor and if the card is not managed well, it could adversely impact the credit score of the cosigner too. However, student credit card is a good option to start when you have no credit history because at a later stage you need to have income proof to get a credit card.

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