Student Credit Card Dos and Donts
College student credit cards, used properly, can be a great tool to establishing new credit. College student credit cards will generally have lower requirements for approval and for younger people without credit history they are generally much easier to get than any other type of credit card.
Regular APR - All college student credit cards will generally have a somewhat higher regular APR than a regular credit card for good as well as better credit. The college student credit cards in this way can be compared to credit cards for bad credit. Therefore, when choosing a college student credit card you must also consider offers that have lower regular interest rates. One has to always remember that no matter how great ones offer may be the reason for accepting a college student credit card offer, first of all, is to build your credit. The best practice of using this kind of credit card is to pay off your balance each and every month.
Balance Transfer - If you are getting a college student credit card, it probably means that this is the first credit card you have tried to obtain. Therefore, the option of balance transfer is probably going to be the last thing to consider. In general many people will juggle their balances from their old credit cards to a new credit card with 0% intro APR to save on interest as well as delaying paying off their credit card debts. This is a bad approach to debt sheltering and is not recommended in any circumstance, this will eventually hurt your credit history, especially for college students. If someone at this stage of life gets in trouble with a college student credit card, we advise that they just seeks advice and even possibly financial help with parents and does not try to open new student credit card accounts hoping to transfer balances over and over.
Adult Co-signer - Using an adult co-signer could be a good idea when applying for a college student credit card. However, in most cases it will not even be an option, parents’ awareness of the existing account may help the college student control usage and work out better habits for the future. In most cases, however, it is recommended for parents to take an initiative and work this matter out with their student before they are out to college and facing the subject on their own.
Ultimately, it is the parents responsibility to teach there college student the do’s and don’ts of credit. If you happen to be one of the lucky ones that have a parent wanting to teach you about credit, listen. They really do have much to offer and only want to teach you before you hit the same pit falls they have probably experienced. The earlier in life you understand your credit and how it can work for you, the better.
With the struggles of college life and expenses that go with it, you do not need to worry about what you are doing to your future financial situation as well. If you do the right thing, all of that will just fall into place.
Student credit cards.com @ November 5, 2008