How A Student Credit Card Can Be Beneficial

The popularity of credit cards for college student is definitely on the rise. Today, many young people prepare for college by applying for a student credit card. Even parents provide their kids with student credit cards to help them with their studies. Should you get one too?

Credit cards for students were designed to help young people establish an early credit history for themselves. While in college, having a credit card is a great tool for building their credit scores.

But building a good credit isn’t just about using credit cards. Good credit depends on how well you can handle your credit card account. This means late payments and exceeding credit limit could do more damage than good on your credit history. Therefore, before applying for a student credit card, young people must be aware of their responsibilities.

Parents play a big role in teaching kids about correct management of their credit cards. Setting a fine example on how to properly manage credit cards makes a big difference in training kids about being a responsible credit card holder.

Help Your Student Choose

If you’re a parent, discuss with your kids the specific factors that can affect their choice. For example, does the student credit card report to the major credit bureaus? What are the costs associated with the credit card?

Although a low interest rate is important, the APR alone does not make a credit card great. Some cards with low APR may actually have high annual fees, unreasonable late penalty and transaction charges or may not have a grace period at all. These are all important factors that must influence your decision.

If you’re a student, never sign up for a credit card without first doing your research. The only way you can be sure of your choice is by comparing each credit card and by understanding the complete Terms and Conditions.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

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