Why are student credit cards helpful?

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Credit Card Applications » Research » Guides » Building Credit History » Why are student credit cards helpful?

Why are student credit cards helpful?


Updated: December 26, 2012

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Student credit cards are like normal credit cards, except that they come with extra regulations and rules, which are primarily designed for college going students. Student credit cards if used properly are very helpful to college students and ensure that they start learning how to build a credit history in the long run.

Here are some of the reasons why student credit cards are so helpful.

Excellent credit history is not required

Opening a new student credit card account is far easier than applying for normal credit. Students are expected to have no credit history or credit score, so it is quite possible for them to start creating a credit history by applying for a credit card. On the other hand, once the student passes out of college, getting the same credit card would become far more difficult. A lot of credit card issuers do promotions to get more students open an account with them. They also provide many offers for promotion, although the credit card reforms have curtailed those campaigns a bit. However, students have a lot of choices when it comes to picking up these student credit cards, ensuring that they don`t settle for anything but the best suited one for them. Student credit cards need a guarantee from the guardian or parents, if the student doesn`t have an income of his or her own.

Building a credit history

If you are in college for at least 2 years, you will have income in the form of pocket money and you will have various expenses too. Assuming that you spend through credit card and diligently pay the bills, you add 2 years of consistent credit history to your record. This offers a great advantage because when you go out of college for a job, you have a good credit history and you can choose a good credit card, instead of starting from scratch. Moreover, if your history is very good, it reflects on the credit score of the person who signs for you, like your parent or guardian too.

Convenience

If you are a student living in hostels, carrying cash with you all the time isn`t safe. Walking to the ATMs for withdrawing money every single time is not convenient. Student credit cards will help you solve both the problems through plastic money. Your parents, instead of handing over cash to you or depositing money in the account can directly pay the bills.

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