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Everyone has heard about credit cards and their advantages, but few of us know that there is a possibility for students to get a credit card specially designed for them. Whether this is a good or bad thing is a matter of various elements, but those who lack funds to pay tuition fees or other expenses related to school can make use of this product.

Student Credit Cards can be obtained by high school-, college- and university students. These cards’ primary characteristics are the better terms and conditions they provide compared to traditional credit cards. Isn’t it great? Besides being more advantageous, these cards provide students with an extraordinary opportunity to implement money-management skills and thus to prepare themselves for more complicated financial transactions and tools. Moreover, college and university students can make use of Student Credit Cards by building up an excellent credit-report. By using this card properly, these students can have such a good credit rating that will open them other financial opportunities after graduation, such as good-term loa ns with lower-than-average interest rates. These loa ns may be used to purchase car, house, or to go to a dream-holiday.

What should interested students know about the eligibility criteria and the application procedure? Almost anybody can get a Student Credit Card, but high school students can only obtain it if an adult co-signs their application. A minimum income declaration is also needed from this adult for security-reasons by the credit card company. Many people (especially parents) who have heard about this option for the first time are afraid of students being too naïve and unprepared for such a serious financial responsibility. However, there is a solution to this anxiety. Pre-paid credit cards are a good alternative for immature high-school students who need time to learn how to manage their personal finances. But a prepaid student credit card is safe enough and may help students to improve their money-management skills as well as to become aware of the existence of financial limits.

Second, College student credit cards

do require neither a minimum-income declaration nor an adult co-signer. These credit cards are quite common, and as a result there are various credit card companies offering them. Some of these companies’ incentives are attractive credit-limits, advantageous and simple repayment-options, discounts, bonus points, low interests, interest-free periods, 0% introductory APR (annual percentage rate) both for purchases and for balance-transfers, but the list is endless. So for college students who can use it in a responsible way, this card provides numberless benefits. Those who intend to get a College Student Credit Card are advised to shop around, ask the opinion of a more experienced person, and choose wisely!

Third, university students are offered an even more advantageous credit card. But these individuals have to be attentive enough to make balance payments in full and in time each month, as otherwise they will suffer due to high late payment fees that are charged.

Those who intend to get a Student Credit Card need to understand that these cards are very different from debit cards. The latter works as follows: the owner of a debit card can make purchases from the amount that is put on the account to which the card is attached. The amount of the purchase is deducted from the amount present at the declared bank-account. Student Credit Cards, on the other hand, have their principal amounts offered by the credit card issuer. So these cards practically work as a loa n: students are required to pay back the amount they have spent. There is a possibility of creating a monthly balance, but this can cost the card owner a lot, due to the high interest charged. So besides enjoying the benefits of credit cards, students should be aware of the drawbacks of not managing their finances responsibly. So they should only have a credit card if they are able to spend money carefully and can prevent adding up unnecessary expenses and debts.

Students interested in credit cards should know the important features of successfully selecting their first cards. Choose such a card that can build a good credit history for you. This is of primary importance from the viewpoint of students’ future finances. Based on a healthy credit history, lenders will provide students with good term loa ns in the future. Besides credit reporting, applicants have to pay attention to the type of the card. There are ‘secured’ and ‘unsecured’ student credit cards. Secured cards are given for those who can secure collateral against their future cards, or who provide a security deposit, while unsecured cards do not require any collateral from the applicant.

Secured Credit Cards are safer because parents can have better control over the spending of their child. Similarly, the card owner can only increase the spending-amount if somebody deposits more money into the account.

When making their decisions, students (and parents) are advised to take into consideration the lending institution, the charges, as well as their ability to make payments in time before accepting any deal. They should also read the credit card agreement carefully, and check the logo on the credit card. This may be a sign of the card issuer company’s reputability.

Finally, we can agree that student credit cards are more convenient than carrying cash. But students should not forget to pay attention to their spending habits and prevent accumulating interests and other charges. Be aware of the risks of possessing a credit card, but after having this knowledge do not forget to make use of the opportunities and benefits offered by this product!