Types of College Student Credit Cards, How to Get, Advantages & Disadvantages

These are the most popular credit cards for college students

Students love credit cards because they can get low interest rates and have access to them. Some cards don’t even have fees. The cards offer many benefits and help students build credit. There are many options for secured and unsecured cards, as well as prepaid cards. You should choose the one that best suits your needs. Credit cards can come with many financial responsibilities. You must be careful with how you use credit cards.

Unsecured

This card does not require a cash deposit and allows you to make purchases using a basic credit line. Although this card is not available for students with normal or limited credit, it is the most popular. It was designed to help students improve their credit scores. Another benefit of this card is the 1% cashback bonus that you get for every purchase made through it. The card doesn’t have an annual membership fee. It also offers a 25% bonus reward if your monthly bill is paid on time. The reward can be redeemed by check or directly into your bank account. This card doesn’t limit the amount you can earn.

Secured

This card is used to fetch money from an account that your cardholder shares. Good secured cards are reliable and provide details of your payment history to credit bureaus to help you build credit. Three credit bureaus receive details about your payment history. Monthly reminder emails or text messages are sent to remind you of payments. The card charges a 20% annual percentage rate (APR), but there are no annual membership fees.

Prepaid

Prepaid cards can be used in the same way as a secured card, but they also include a checking account. This card lets you spend the money you have deposited into it. This card has a very low monthly fee.

Here are some important guidelines to help college students get a credit card

It was easy for college students to obtain credit cards in the past, as there were so many options. Many companies offered free cards to students simply by filling out applications. Credit Card Act of 2009 was passed in February 2009. It established very strict rules for students who wanted to be eligible for a card. The rules have been completely changed and students are finding it difficult to qualify. Students must be familiar with the qualifications and related information before they can apply for a card. Here are some guidelines to help you get started.

Learn about credit cards and how they work. You should also understand the due dates, billing procedures, late penalties and limit fees. Also, learn how to increase your interest and avoid additional charges.

* Students must be at least 21 years old and have a job. According to the new law, students who are under 21 years old (i.e. The new law states that if the student is under 21 years old, they must pay additional charges out of their own income. If the co-signer is over 21, they will need to be paid. The law allows for 20% of the earnings to be paid, but not more.

* Students who wish to increase their credit limit must get written permission from their parents or cosigner.

A good credit score is necessary to obtain high interest rates and a large line of credit.

It is important to compare different card offers and types of cards for college students. There are many card companies that offer cards to college students. Each company will have its own set of rules, as no two companies are alike. Each company has its own set of rules and fees. It is up to you to choose the right company for your needs. You should look for benefits and avoid extra costs by using benefits.

* Subprime credit cards are available for those who do not have enough credit. These costs come with additional fees. In the early days of credit cards there was a limit of 75%. Now it is 25%. It’s obvious that there is a significant difference.

* Before you apply for a card, check to see if your company reports to any of the major credit bureaus. Three major bureaus that can help you improve your credit score are Equifax, TransUnion, and Experian.

* Credit usage should be learned in order to keep it safe. Card management requires proper control and management.

Some Significant Advantages Of Credit Cards For Students

Every time a student walks into a college, they are flooded by offers from credit card companies. These cards are designed to give students a sense of responsibility and make them feel comfortable. They also help improve their credit score. Although there are many benefits to owning these cards, students should be careful when using them. Students must also understand the debt aspects of credit cards. The following points will help you understand the benefits of a credit card for students.

* Responsibility: Credit cards give students the opportunity to learn about responsibility. Students can learn money management, how to pay bills, and how to control spending by getting a credit card.

* Emergencies: There are many situations that can arise after obtaining a card like this one. Therefore, it is possible to learn how to handle them.

* Rewards: Many students receive cash or points for purchasing commodities.

* Credits can be increased: Once a student has learned how to improve his/her credit, he/she will be able to purchase a car or a house.

*Warning: Students can avoid buying excessively by feeling a sense of danger and warning.

There are some disadvantages to credit cards for students

Students are now limited in their ability to apply for credit cards after the new laws on student credit cards were passed. According to some sources, students today have a lot of debts due to the credit card facility. These debts can even be carried forward to the next college. Credit cards for students have many benefits, but they also come with many disadvantages. Let’s take a look at these.

* Too many credit cards and too many debtors: Sallie Mae’s 2009 survey found that most students today are completely dependent on credit cards. This is not a good thing. A majority of college students have at least one credit card. The average number is around 4.6. This means that a student can spend up $5000 on a single card and up to $15000 on three cards. It is obvious that debt will rise dramatically as interest rates are rising.

* Too many balances: This was the most serious situation Sallie Mae encountered. It was $3173 that was the average balance of college students’ credit cards. This was the highest figure among all figures. It was shocking. This indicates that students aren’t using cards for convenience, but are misusing them and going above their limits.

* These cards are for students and loans: Another disadvantage is that the student’s debt is carried forward into the next years, which can lead to a loan debt. It is extremely sad that students must take on the responsibility of repaying it after they start their careers. Sallie Mae’s 2009 study found that 23% of students didn’t answer questions about their loan payments. The other 77% did not have any connection to the loan.

* Conditions: Students below 21 years old will have a difficult time getting a credit card after the 2010 legislation was passed. Students are now facing a serious disadvantage because of the strict new rules.

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