Student Credit Cards
Student Credit Cards are a great way for high school and college students to establish credit worthiness. Many credit card companies offer student credit cards at no annual fee and many offer rewards, cash back, and a low or 0% introductory APR. However, student credit cards usually carry a higher than normal regular APR due to bad or no credit usually associated with student credit card users. Thus, liberal spending without paying the card's full balance could result in hefty finance charges and / or long repayment terms. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests, defaults, and more.
Benefits of a Student Credit Card
- Helps to establish credit worthiness
- Provides a line of credit for necessary school items (books, supplies, groceries, etc.)
- Many student credit cards have no membership fee
- Most student credit cards offer a rewards program
Drawbacks of a Student Credit Card
- Regular APR's on student credit cards are usually high
- Not paying the full balance could result in high finance charges and long repayment terms