A student credit card is a credit card issued to students attending schools and colleges. Students who are eighteen years old and attending a high school or college may qualify for a student credit card. A student credit card is a very useful instrument for a student going to college by offering assistance for the financial aspects of his studies.
A student is not required to have a steady source of income to get a student credit card, with a fair amount of credit limit. These cards may be of great use to students for services and purchases in all parts of the world. Of course this credit extended to students has to be paid back in full and with interest. These credits attract a very high rate of interest, and possibly more than normal banks charges on their loans.
Student nowadays gets numerous credit card offers sponsored by several credit card companies competing in the market. Their offers may vary from normal to outrageous. But before selecting any one of those cards a student must read the terms and conditions involved thoroughly and understand the details such as annual charges, over the limit charges, late charges etc. Some credit card companies levy heavy charges on unpaid balances, knowing this before hand will alert a student to repay balance amount in time and full to avoid the excess charges.
Getting a good credit limit on the student credit card is of utmost importance to a student. There are several factors that are taken into considerations before the credit limit is decided. Some are the student's personal income, bank account balances if any, credit history and the credit score. If these factors are good a student is sure to get a high credit limit on his credit card, on the other hand student with a short credit history may not be in favor of getting a high credit limit. The credit card companies needs to have a long credit history to make an assessment of the students past dealings to conclude on the credit limit.
In conclusion it is always rewarding to pay your dues on time and keep minimum balances in your credit dealings. Possessing a good credit history will qualify for a higher credit limit. If a student with a lower credit limit keeps a low balance in his account and maintain a timely repayment routine, the credit card company may later raise the credit limit. A student must also wary of credit cards that offer reward programs, because they may be charging high rate of interest on their transactions.