Student Credit Card – The Basics

You’re in college and one day you walk down to the mail room and sitting there is a man behind a table. He looks very nice and explains to you that he’s from the credit card company. He tells you that they’ve got a great offer for students, and that you’d be able to have a credit card that would help you to pay for things that you wanted while you’re in school, such as items for your dorm or apartment or even food or clothing. He then gives you something small, like a tee shirt or a voucher for food at a local restaurant, and leaves you with a pamphlet. What is this all about?

Student Credit Cards

Credit card companies know that there is much money to be made by offering student credit cards. A student credit card is a credit card that the lending company has designed to be specifically for students. There are a few things that you should know about a student credit card.

Student credit cards are only for students. You can’t get one if you’re not registered to a college, though many have tried and still many more likely will. The credit card company will often need proof of your enrollment to give you a card.

You will have a fairly low limit to start. If you have no credit, you’ll have a low limit on your credit card to spend. The amount is usually somewhere between $300 and $500 for new credit card applicants.

You may have a high interest rate. Credit card companies know that most students don’t read the interest rate section, so they make the interest rates high so that you have to pay back a great deal more than you borrow, in most cases.

There are certain perks. If you have a student credit card, there are perks that you can get, such as having a no payment schedule for a set amount of time.

As with most things, there are good things, and bad things, about getting a student credit card. If you’ve never had a credit card, do a bit of research before you get one so that you don’t get in over your head. Don’t feel ashamed to ask your parents or friends for their advice before signing up for a card.