If you are a fulltime student at a college, you have a great chance of getting yourself an approved credit card. In fact, the chances are far better than anyone with a similar credit profile, but not at college. Student credit cards are offered to students, as they belong to a group of customers, who are most likely to drastically increase their credit rating and scores in the next few years. For students receiving student credit cards, it is a sign of trust from the card issuers that the student will be able to repay the debt on the card and would be responsible with its usage.
Student credit cards need a co-signor though, and the credit will actually reflect on the credit files of the student as well as the co-signor. If a student is below the age of 21 and has his or her own income, a co-signor wouldn't be required, provided the student produces proof of income.New credit reforms have significantly curtailed the liberties that can be taken by credit card issuers in going to campuses and luring students to sign up for new accounts. Even with the new reforms, student credit cards remain a sound way of starting to build your credit history, before you start making your own money.
You can apply if: your credit history is short. You've had your own credit card, loan or have been an authorized user on someone's credit card for less than 3 years. You have recent late or missed payments or defaulted on a loan in the past 5 years.
Reasonable efforts are made to maintain accurate information. However, the information on the cards' rates and terms is presented without warranty. When you click on the "apply online" link you will have an opportunity to review the credit card terms and conditions on the credit card issuer's web site.
Student Credit Cards With a Wide Array of Benefits
It is the general expectation that most students do not have a credit history at all. However, unlike other people with no credit, students will find it easy to get approved student credit cards that will not only help them manage their finances better instead of carrying cash, but will also help them build credit histories. Building a good credit score, will help them get better credit cards when they have income of their own.
Requirements for student credit cards
Student credit cards generally require a co-signor, which can be a parent or a guardian of the student. Students below 21 cannot be given cards without a co-signor. The other alternative is to provide income proof if the student has his or her own income. The new credit card reforms have been able to tighten the procedure to dole out credit cards to students, in a significant way, to ensure that students' expenses are better monitored and that they don't run into deep debts on their credit cards.
Special features on student credit cards
Student credit cards are no different from some of reward credit cards. The variety of rewards include air tickets, cash back offers, tickets for concerts around the country, special gift cards, MTV passes and tickets for Studio tours and other sporting events. Student credit cards also come with tools which will help students learn more about building credit. There are also tools to allow guardians to monitor expenses of their children.
Convenience through student credit cards
Student credit cards come with options like instant online transfer, which allows parents to provide funding for their children's expenses in college during emergencies. Similarly, there are cards that enable direct deposits to be made free of charge and will allow students to write checks to keep them out of debt.
Using the student credit cards
Students have to be careful and avoid having an outstanding balance as the APR after the introductory period could be very high, in excess of 15%. Some student credit cards have special incentives like cash backs for those who pay the bill in full at the end of every month. There are also incentives for those students who secure a good GPA in exams. Terms like these allow students to construct excellent credit histories even before they are out of college. There are rewards for bookstore purchases, discounts on purchase of student equipment and supplies and special points if you opt for paperless statements too.