Credit cards for college students are made for people who wouldn't normally be able to get regular credit cards because they don't have a steady income or a credit history. As a student, it's a good idea to start building a good credit history as soon as possible. This will make it easier for you to get a regular credit card in the future, regardless of whether or not you have a job.
Credit Cards for College vs. Regular Credit Cards
In theory, credit cards for college are the same as other credit cards. But a college credit card is for people who have never had a credit card before, like college students. Because of this, these cards have more rules than the generic cards. These are the top three rules:
- The parent or guardian must sign the application with the child.
- Lower your credit limit (from $500 to $1000, for example).
- Interest rates that are higher than those of traditional credit cards: Interest rates on these cards are usually between 16 and 18 percent.
What a college credit card can do for you
Most students now need a credit card to get by in college. There are many benefits, as long as you know how the card works and use it carefully. These college credit cards are used a lot by students, especially in the United States. This is because it gives them a lot of options for how to handle their credit.
College students can use their credit cards to pay for tuition, rent a car, or buy gas.
In fact, there are some credit cards for college students that offer low interest rates to those who keep their grades up. These cards also come with a lot of rewards and perks. These cards help kids learn about money and how to handle it at a young age.
A college credit card can also be one that is pre-paid and has a credit limit cap. This makes sure the student doesn't spend too much, and it also lets parents keep an eye on how their kids spend their money.
Characteristics of credit cards for college students:
Citi, Discover, and Chase all offer a wide range of college credit cards. Aside from these, there are many other kinds of pre-paid cards. Most of these student ID cards have a lot in common, such as:
- 0% APR on purchases and balance transfers for the first time, which is usually 6 months (typically)
At least for the first year, there is no annual fee.
- You can manage your account online for no extra charge
Many of the above features are also found on many traditional, more generic credit cards. However, the college student credit card has some unique features that set it apart, such as:
- The account holder is not responsible for any unauthorised charges.
- Getting points for the cards is easier with a good GPA.
- Warnings about theft and fraud
It's a good idea for college students to have their own credit card. But it's important to know that having bad credit at a young age could lead to terrible things. Parents can help their kids choose the best credit card for college based on how their kids spend money and how well they can pay it back. If you use your college credit card wisely, you can be financially independent at a young age.
