Student Credit Cards: A Good Thing?

Students that choose to pursue a College education are taking that first step into adulthood. There are two types of students that go into College. The first kind is those who take College very seriously and they use the experience to get themselves ready for becoming an independent adult. The second kind are those who see College as a learning experience but a way to make new friends and let their parents worry about the tuition and expenses. It is more common that students of the latter will sign up for a student credit card and soon after will get into trouble paying it back.

A large majority of students in College don’t think about what their credit score is or how going to College could affect that. Credit Card companies are targeting students because they don’t care about their financial future at least not yet. Student Credit Cards are great for those students who work while they attend school and they know what it means to have good credit. These credit cards can be used for emergencies, schoolbooks or supplies. The idea behind student credit cards is to entice these kids with the freedom of having a credit card but they don’t read the fine print.

Student credit cards can be a good thing if you know what to look for. You want to look for a low interest rate. Anything around 10% or less would be considered low these days. You want to make sure that these credit cards have fixed rate interest rates too. Choosing a variable interest rate credit card could be a recipe for disaster.

Parents often give their College bound students cards from their own credit cards. This could be a sign of parents showing that they trust their kids not to run up their credit. Students have to remember that these cards even though have your name on them the credit is your parents. When you run up the bill it goes on your parents credit report. These student credit cards should only be used when you can afford to pay them back. If you do not have a job then you should avoid student credit.

If you do have a job and you are responsible a student credit card can be a good thing. By paying off your purchases every month it could help build up your credit. Try to sign with a credit card company that offers low fixed interest rates and do yourself a favor choose one with a very low credit limit. Choosing a limit that if you had trouble paying it off you could you afford to give the minimum payments? These credit cards are not like student loans, they do not become due until after you graduate.

These bills are due the very next month, after you make a purchase, set aside the money to pay for it so when the bill comes you can just pay it off. These student credit cards can be a good thing if you are responsible enough to handle the payments.