Student Credit Cards
Advice For Using Your Student Credit Cards Wisely
Student credit cards are a great way to build credit for those who do not have a previous credit history. However, student credit cards can be double edged swords in that they can both help a student establish good credit, but student credit cards also make it possible for the student to destroy his or her credit rating in a manner that will cause problems for years.
It is important for parents of students who have student credit cards to discuss with their children about the seriousness of using their student credit cards wisely. They should understand that the student credit cards should only be used for emergencies or other parentally approved expenses. The students must understand that the balances on their student credit cards must be paid off as soon as possible in order to avoid incurring large finance charges.
Parents should also have a discussion with their child regarding the importance of maintaining good credit and how developing a bad credit score can make it very difficult for them to make large purchases in the future. A little focus on the responsibility of having student credit cards may help the student avoid potential problems.
Student Credit Cards
It is no secret that it is almost laughably easy for students to obtain student credit cards. The advertisements are usually couched in language that makes it appear that the credit card companies make student credit cards so readily available so that they can magnanimously educate students on how to handle credit responsibly. While that is of course true, the truth is that student credit cards are great sources of revenue for the credit card issuing companies for a number of reasons.
First, students who are overwhelmed by the pressures of college life may occasionally forget to pay the bill on time or may not have the money to pay the bill when it is due. This means that the issuer is able to cash in on lots of late payment fees and finance charges. Additionally, issuers of student credit cards are aware that if the student begins to incur a troubling amount of debt that very often the student’s parents will help the student pay down the balance. This means that the issuers of student credit cards face less of a risk of loss revenue due to charge offs than they do with other types of credit cards.
Frequently Asked Questions
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QUESTION:
What student credit cards will approve no credit?
I'm a college student, so I was thinking of getting a student credit card. Still, having no credit, I was denied by two of them before already. What student cards are there that I can get with no credit?? If any of you have, let me know-
ANSWER:
a prepaid or a secured card is all you'll get.
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QUESTION:
Can college students with no credit get student credit cards?
I'm a freshman in college, but I don't have credit. I was looking into the Discover Student Card for College Students, but I'm not sure if I need some type of credit first. Can I still get the card despite my lack of credit history?-
ANSWER:
Depends
The new law that went into effect last February makes it a bit tougher for those under 21 to get credit. You either have to prove income or have a parent cosign.
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QUESTION:
What is the purpose of student credit cards?
I mean, I understand the concept of building credit and everything, but what is the point of student credit cards? What is the purpose? I'm sorry if this is a silly question, but I don't really get it.And can you trade them in after you're no longer a student for a "real" credit card? Do people just keep them forever? I always thought closing accounts lowered your credit score?
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ANSWER:
Student credit cards offer students with little or no income the opportunity to prove their creditworthiness. They tend to have higher interest rates than standard credit cards since students pose a higher risk of default. But the credit card companies want to gain loyal customers early-- and see college students as a great opportunity.Many BIG issuers have gotten into the 'student credit card' game. To see a complete list, visit:
http://www.asapcreditcard.com/student-cards.html
When you decide to upgrade to a 'regular' credit card after school-- don't worry too much about closing the old account. Although it will have a slightly negative impact-- it's only short-term.
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QUESTION:
Where do I find student credit cards?
I'm 20 yrs old, and looking for a credit card to start building credit with. I heard you can get student credit cards with lower rates. I'm a college student, already recieving FAFSA financial aid (about 00 a semester), but i wanted to get a credit card to build credit. I have a good job, and have been paying for everything with my debit, or checking account.-
ANSWER:
Go to www.bankrate.com, choose the Credit Cards tab. Under "Compare Credit Card Rates, click on Select by credit card type. On the right, choose the credit card type - Student Card - and compare the cards to see which is best for you. There is a Calculators button on the blue line above the tabs. From there you can play around with balances and how much interest you would pay if you charge a lot but only pay the minimum. Also, please go to www.myfico.com, click on Credit Education. Read all you can, because what you don't know CAN hurt you.
You are also entitled by law to a free credit report once a year from EACH of the three major credit bureaus. I recommend you check each bureau once a year, a different one every four months. The only site to get a totally free credit report is www.annualcreditreport.com.
I'm a parent who went back to college. In my Speech class, I decided to give a speech about credit, since most of the students were college kids and need to know this information. And there was even one lady in her 30's who didn't know some of what I spoke about, such as being careful about closing cards you don't use any more and how it can affect your FICO score. Educate yourself about this topic and you'll be ahead of the game. Good luck!
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QUESTION:
What are some name of credit cards that give student credit cards?
What are some names of credit cards that give student credit cards? Was is that amount that they give students? Can a person get student credit cards if they only attend college on a part time basis?-
ANSWER:
You can find a complete list of student credit cards here:http://www.asapcreditcard.com/student-cards.html
Generally, your credit limit will start out small (anywhere from 0-00). After you've built some credit history, the credit card company will often raise your limit. Just make sure you make regular, on-time payments.
Hope this helps. GOOD LUCK!
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