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What Sets A College Student Credit Card Apart From Other Credit Cards
By: Sohel Katir
With college student credit card that today, most parents contend that it is
okay to let college students obtain their very own credit card. Not only because
they want to let their kids manage their finances alone but also because having
credit cards or a credit history for that matter is extremely important.
With the advent of credit cards, most people would always be looking into
someone’s credit history before they can approve anything.
They even insist that without a credit history, people tend to become a total
outcast in the society, someone who is not worthy to enjoy anything and
everything without a credit history. That is why most college students would
struggle just to get one.
But what makes the college student credit card different from the other credit
card? Why is it that it is highly classified as “student credit card,” and not
just any credit cards for that matter?
Basically, college student credit cards do not make such big difference as
compared to the other types of credit cards. However, because it is a student
credit card, the benefits stated therein are completely focused on providing the
student’s their basic needs.
Moreover, college student credit card are entitled to lower interest rates
especially for students who have good grades. They can negotiate their interest
rates for a lower rate provided that they pay their balance dues on time and
that they maintain good grades.
On the other hand, student’s credit cards are actually secured credit cards. But
the difference that sets the students credit card apart from the other credit
cards is that their parents can set the credit limit.
Also, parents can let their child’s credit card to hook up with them so that
they can keep track on their child’s credit transactions.
Another thing that sets the college student credit card apart from the other
credit cards is that the student credit cards are mainly focused on and quoted
for students only considering the fact that they have limited credit history.
Normally, college student credit cards have no annual fees and have credit
limits that are only set to $500. And according to some surveys of financial
institutions, the average student credit card annual percentage rate is 17.66%
for purchases and 19.67% for cash advances.
So, even if student credit cards are different from the other credit cards
because of its considerable interest rates, it is still a credit card. Thus,
students must really be responsible in handling them; otherwise, they are bound
to suffer bad credit history in the end.
About the Author:
http://www.credit-card-magazine.com |
