Chase Credit Cards for Students: Why They Are A Good Idea

To some lenders, a recipe for disaster is to hand a credit card to a student. The reasons are not particularly hard to understand, with students famed for prioritizing good times over responsible financial behavior. However, the availability of Chase credit cards for students flies in the face of such convention.The move by Chase Bank is not as crazy as might seem, with advantages to both credit card issuer and holder. The holders can benefit from a wide range of incentives, making it a valuable student financing option, and for the bank, the early relationship developed with the card holder can develop into something bigger in time.And in any case, statistics show that students are amongst the most responsible credit card users in America. Professionals are actually more likely to max their credit card, so approving Chase credit cards is a worthwhile risk.Credit Card OptionsThere are several options available when it comes to choosing Chase credit cards for students, with both Visa and Mastercard offering varying terms. For example, Visa offer a Student Flexible Rewards card and a Student Free Cash card, with the only real difference between the two being the accumulation of user points for either free merchandise and gift certificates, or for cash-back and gift card programs.The Student Mastercard credit card, meanwhile, offers less in the way of cash-backs and gift vouchers and more in the way of building a sound credit history and access to financial independence. They are often issued through the college itself, which makes it a popular student financing option.However, Chase credit cards do not offer free money, and all students are required to repay their credit balances on time. Otherwise, as with all credit cards, they can prove to be very expensive indeed.Interest Rate DealThe crippling factor for all credit card holders is the repayment of balances, and the interest rates that can be charged. The truth is that, despite their availability and apparent versatility, Chase credit cards for students are no different. Students need to know what rates they will be expected to pay.Typically, whether the card chosen is Visa or Mastercard, the interest rates are the same. Variable APR ranges from 18% to 23%, which is quite high. But the rate rises to 32% when a payment is defaulting on, so this student financing option can prove quite expensive if not carefully managed. This is especially true if balances sit closer to the credit limit.The key selling point for these Chase credit cards, however, is that 0% interest is charged for the first 6 months, but once that period is over the repayment period of grace is just 20 days after the issue of the bill.The BenefitsOf course, what makes the investment worthwhile for the student is the fact that the whole range of Chase credit cards for students allows them lower-cost access to great stuff.For example, the Visa Student Flexible Rewards card offers a points system on which discounts can be secured. It offers 1 point for every dollar that is spent using the card, and once the minimum of 3,000 is accrued, discounts at stores and restaurants are available. When 25,000 points are collected, a free round-trip airline ticket from any major US airline is available.As a student financing option, it is hard to argue against the use of Chase credit cards if the student using them is responsible with their spending. Being able to repay is the most important factor.