Student Credit Cards Can Make Life for the Student Much Easier
Surviving in college is a challenge, but student credit cards can make it that little bit easier. So, even with low cash, those necessary bills and fees can be paid on time.
In fact, they are much more than just useful, with the availability of credit cards for students allowing those in college to meet their bill payments and living expenses. As is the case with student loans, credit card companies are willing to give students a break to help them on their way.
There is method in this apparent madness, with those students approved for a credit card having to meet certain criteria before being given the thumbs up. These criteria are not out of the ordinary, of course, but card issuers gain some confidence through them that a debt will not be built up and unpaid.
None of the criteria set when issuing student credit cards are surprising. It is simply that there is some security or certainty that the cards can be repaid. It would seem that students would not be considered ideal applicants for credit cards for this very reason, with any employment being part time at the very best, and salaries therefore very low.
However, cosigners are the logical solution. With a cosigner that has a good credit score, and a provable income, credit cards for students become a very plausible option. The student may be expected to make the repayments, but the cosigner takes over the responsibility in the event that a payment is not made. In this way, students approved for a credit card are not such a major lending risk.
Zero Interest for 6 Months
A major benefit for students is the availability of zero percent interest for the first 6 months. Card companies know that students need a little time to settle into college life, and offering student credit cards with no interest to pay on purchases allows them a little space. Of course, it is also great marketing.
However, it is important that the details are known on any such agreement, so read the small print. For example, the interest rate after the first 6 months could be higher by agreeing to the offer, making such credit cards for students more expensive in the long run.
Nevertheless, it is generally believed that students approved for a credit card slow down in their use of the card once the initial settling in period is over. Therefore, the large charges should be well under control after the initial period.
Important Terms to Seek
Of course, student credit cards are extremely useful but the specific terms of the credit agreement is crucial. Getting a zero APR is great, but what really matters is what the APR will be in the long term. So finding the right terms is vital to securing the right credit cards for students with or without a cosigner.
What this means is that some serious searching needs to be done before any agreement is signed up to. Rarely do students approved for a credit card have any credit history of their own. Which means they are considered equal to applicants with bad credit. Different companies will offer different rates, and also different credit limits, so getting a good rate is possible, especially online.
The bottom line in managing a credit card, whether in college or out in the real world, is to only use them sensibly. In terms of student credit cards, this means using the card to buy groceries, pay utility bills and cover any sudden expenses that may come along. The card should not be used for socializing, financing weekend trips or buying concert tickets.
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ABOUT THE AUTHOR
Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loans and Mortgage Loans for Bad Credit please visit her website at http://www.quickbadcreditloans.com/