Home Credit Student Credit Cards – Do You Need One?

Student Credit Cards – Do You Need One?


Credit cards are very popular among many households and business owners. That’w the credit card suppliers have been very creative and innovative to design different types of cards. Amongst those cards, there are cards designed specifically for students, the student credit cards.

So, what is the difference with others? Actually, it is pretty much the same with other credit cards since they work the same ways for more or less same purposes. Besides that they are designed for students, there are 2 main differences: the credit limit and APR.

Unlike personal and business, or conventional credit cards, the student credit cards’ limits are usually lower. Depending on the banks which provide the student credit cards, the limit can ranges from $400  up to $1000 per month. Some folks may consider this an unfair policy. But there is a good reason for this. Most of the students who apply the credit card have never used credit card before. They also may not know the basic of credit cards. That’s why the credit limit is lower. It is the risk reducing factor which is taken by the banks which give credit cards to students who don’t have credit history.

The APR – annual percentage rate of student credit cards are usually higher than normal credit cards. Again, the reason is the same as I mentioned above. Most credit companies nowadays also minimize the risk by requiring a parent or guardian’s signature when students apply for the credit card. They will act as a guarantor or witness who can swear on their guarantees capability.

Credit cards have been convenient aspects for most people now. Students deserve the same opportunity so that they can learn how to use the credit cards for the future. The low limit of credit cards for student come for greater good. It will minimize the risk of students fall into a dreadful credit situation. Applying student credit cards will teach you to identify credit card fraud, credit card function, managing your finance, controlling your financial behavior, and many more. The earlier you learn about credit cards, the better your financial future will be.

It also develops good credit rating. So in case you are interested in starting a business by yourself, your good credit score will help you a lot in applying business credit cards. It does not hurt to know how to manage your credit in early age. You will have a strong grasp of the credit cards knowledge. It will be useful when you get into the real life. So, do you need student credit cards?

topcreditcardsreviewed.com best credit cards for college students


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.