Student Credit Cards A 2008 Overview
Student credit cards are becoming more popular as it gives the parents a way help their children as they go off to college but also it helps the students themselves. Student Credit Cards have a special interest rate to them, they have features designed and geared towards college students no matter their age. Some Student Credit Cards also have limits that can be placed on them by the parent or co-signer where other cards cannot. The Student Credit Card can help pay for housing, food and spending allowances, tuition, and books: BUT keep in mind you need to get in the habit from the onset on paying off your balance in full each month when possible.
Getting a Student Credit Card is also considered getting a first time credit card; the student is now considered an adult and the building of their credit history important. Now if your student is under the age of 18 do not worry many banks will still treat them as an adult and require you to co-sign only. If the student is over 18 years of age then they can apply on his or her own. Student Credit Cards and college credit cards have some of the best advantages out there. Using your Student Credit Cards properly will allow you to establishing a good credit rating, the then student would be able to get larger amounts of credit after graduation, which might include a mortgage on a home or a new car. The best student credit card will reinforce these values and help students to learn how to manage their money.
Student Credit Cards offer student fraud or refund protection, which helps the students from getting ripped off by Internet scams or by identity thieves. The best student credit card will offer extended warranty protection over and above the standard warranty that comes with the product that he or she purchases. Student Credit Cards also offer reports to you and the student on just how your child spends their money and what they consider more important as far as their needs are concerned.
Student Credit Cards also have a great reward system which can offer cash incentive to spend wisely. There is nothing more secure to a parent to know that their child is protected if needs cash for emergency expenses they have it on hand.
Since you have thought of Student Credit Cards you then have to think about student credit card consolidation and how to keep your child out of debt or get them out of when debt happens. The first way to prevent Student Credit Card debt is to make sure that they spend their money wisely and if they are getting in to deep to stop using it at all. You need to make sure that both of you know what an emergency consist of and that if their bills reach a certain amount that they are only allowed to use it for emergencies. Another and more useful way to help prevent is to discuss and set a limit on how much they can spend each month and a total amount that they can reach. This means that even if their credit card gives them a limit of $5,000 that they can only spend say a third of that before they cannot spend anymore until the debt is back to a reasonable amount. If they have a limit of $5,000 then you can set the maximum amount at $1,500 and that they have to get the bill back down to $300 before they can use the card again.
If you have decided it is time to teach your teenager the basics of money management and credit, make sure you research the various options available to you before choosing an option. Regardless of which option you do choose, you will want to be sure to spend enough time with your teenager and not expect them to know what to do with it on their own!
Student credit cards.com @ October 18, 2008