Student Credit Cards : Benefits and Cautions

The minute you or your child hits the college campus, the credit card offers are going to come rushing in. Student credit cards are a dime a dozen, each one claiming to be the best option and the ultimate answer to a student’s financial crunch.

There are even instant approval student credit cards that claim that a student will be approved within seconds of applying. Are student credit cards a good idea? What are the best student credit cards? How can you apply for college student credit cards?

Why so Many Offers?

College students are usually surprised by the shear number of credit card offers they receive after applying for college. Part of the reason that college students are targeted by the credit card companies is that many college students are uneducated on how credit works. Student credit cards often come with low limits and high interest, and when students are unaware of these facts, the credit card company makes money off fees and penalties.

Another reason that credit card companies are targeting college students is because college students have a need for money. College is expensive and there is often not extra money for the luxuries of life. Students often turn to college student credit cards to buy things they do not have extra cash for.

When to Get Student Credit Cards

Student credit cards are a good safety net for kids who are away from home for the first time. They can be used for emergencies, such as an emergency car towing, or sudden medical bill, that the student is unable to pay for out of pocket. Emergencies are not, however, a new pair of shoes or a new shirt that the student wants to have.

Another way that credit cards help college students is through giving them a way to build credit. Even if a card has high interest and a low spending limit, if the student makes a few small purchases and pays them off right away, their credit will be established. Later, when college is done and they are ready to buy a car or a house, they will need to have some credit history to get loan approval. College student credit cards help build this history.

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