Student credit cards – what choices you have?
When you say student credit cards most people would imagine unending bills, irresponsible behavior, hopeless financial status. The picture need not be so, however. Though students would not have experience in managing credit, if they were brought respecting money, they would very easily adapt to using the credit cards wisely. Nonetheless, in order to prevent any initial credit problems, the best you could do is to obtain a secured or pre-paid credit card for the student.
The pre-paid student credit cards have very low interest charged comparatively and are normally connected to the parents account for replenishment of funds. This means that parents would immediately know when the money pre-paid or earmarked for the credit card have been exhausted. The facts that the parents would come to know would ensure that the student would be careful with the expenses he or she incurs on the credit card owned.
There are other student credit cards that can teach the student sound financial management. Take for example the gas cards. These are special credit cards that can be used only for filling gas. They offer credit and need to be paid just as any regular credit card is; in the process, the student is able to learn the importance of staying within your credit limits and paying the bills on time. If you manage these credit cards well, when you graduate and start your life as an adult, you would have already established your credit score. This in turn would be of immense help when you apply for your first house or car loan.
It is good to keeping mind at all times, that student credit cards are meant for emergency purposes and Internet payments. It is rare nowadays that you would find any website which allows payment by check. Normally, they would have a pay-by-credit card buttons, which can close the deal within seconds at the click of the mouse. When you pay by credit card, you would most often than not protected by the proof of payment. A word of warning: you should teach the student to check which website is safe for payment by card, lest you would invite identity theft with careless mention of critical personal data on the Net.
Used wisely, the student credit cards are an excellent tool that makes life easier and more convenient. If abused, on the other hand, this would be the source of a lot of pain and embarrassment once you graduate and enter the adult world.
Student credit cards.com @ October 6, 2008