Secured Student Credit Card

Secured Student Credit Card

A student credit card refers to a plastic card linked to a line of credit backed by a credit provider. The provider sets a pre-established credit limit that is extended to the student to use however deemed necessary. The credit line is spent via the student credit card directly at a store or via an online store. In return for allowing the student to use the line of credit, the card provider charges interest on the amount owed. This rate can range up to 36 percent which is much higher then other forms of credit such as student loans. Generally, if the card balance is paid in full each month, the credit card holder is not subjected to the interest fee. This does, however, vary depending on the credit card terms.

Sometimes, when a student needs a credit card but does not have a strong credit history, he or she can opt for a secured credit card. Secured cards are guaranteed by a deposit account backed by the cardholder. In order to obtain the card, the student must deposit anywhere from 100 percent to 200 percent of the total amount of credit their want. So if a cardholder wants a credit limit of $1,000, he or she would have to deposit $1,000 to $2,000 in an account. This deposit is put into a special savings account and serves as a safety net for the creditor. Typical interest rates and other credit card fees apply to secured cards as with any other card. A secured student credit card is a good way to build your credit history so that you can obtain a non-secured card in the future.

Student credit cards – secured or not – offer a variety of terms and incentives. If you are considering applying for one, look farther then your mail box for an application. The Internet serves as a great resource for finding and applying for a card that best fit your personal needs.

Learn more about getting a student credit card at www.studentcreditcards.com