The pros of opting for Student credit cards


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Credit Card Applications » Research » Guides » Building Credit History » The pros of opting for Student credit cards

The pros of opting for Student credit cards

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

Student credit cards were no doubt the most popular ones in the market at one time. People flock to get them and they were easily available during campus life. However a lot of companies have lured in many students and left them in bad shape. Besides there being debts they also have ended up losing their credit ratings and scores at a young age. It is important that they are given cards which are not as risky and also to have some amount of financial responsibility before being given these cards. Most of the time they spend on textbooks and other such requirements, some may even splurge on shopping and outing with friends. While most parents give these as an emergency fund, many students fail to recognize what a true emergency is and end up misusing their funds.

There is however good news for a lot of parents. Student Credit cards are not as complicated as they once were. Today people can have access to cards in college only if they are over 21 years of age. Thus the chances of students getting drawn into situations of debt are reduced. There is also a rule that in order to have the card when under 21 they will need a co-signor to authorize it or have to show that they can pay for their own expenses. Unless a student does not fulfill these two categories they cannot be allowed to have a credit card on their own.

Make sure you teach your kids the importance of financial responsibility. There is no greater instrument in the world of credit cards. If your child is not someone who can spend within a limit or pay off what they need to on time, you should definitely reconsider co-signing for a student credit card. However until they learn to do so, you can give them a prepaid credit card. Once they manage to keep spending within a budget and can manage their money you can move them to a secured card which will help them to begin working on a credit history. Later on once a credit history is somewhat established they can begin to look for unsecured cards that are there in the market. When the score is somewhat fair, other companies will start to send offers which means you can now move on to a card on your own!

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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