A Guide to Finding the Best Student Credit Cards
Student credit cards annually bombard freshman as they enter
college. It has become a fall ritual. Parents should be vigilant
in discussing the importance and responsibilities that go along
with having a credit card before the students ever leave home.
Don't get me wrong, I think it's a great idea that students have
their own credit card when they go away to school, but it is
extremely important that they get the right card and use it
wisely.
The best student credit cards are the ones that have low
spending limits. A high limit credit card given to a college
student could be a recipe for disaster. It should be made clear
to the students that their credit card is for emergency use
only, unless they want to get a job and pay for any of the
charges that are made on it. That sounds like a good idea, but
probably isn't very realistic.
When finding the best student credit cards, it is imperative to
seek out the lowest interest rates that you can find. This is
really obvious, but nonetheless needs to be stated. Many credit
card companies will offer 0% teaser rates for the first six
months. Beware of these rates because they're often followed by
exorbitantly high interest rates and then you are stuck. It is
most certainly not uncommon for students to carry balances for
more than six months, so I suggest that you avoid this option.
Just about all student credit cards offer some type of
incentives such as rewards points or cash back incentives. This
is done for obvious reasons. The most common of which is to
entice the cardholder into using it more often. Overall it is a
pretty good deal to receive rewards for credit card charges as
long as you bear in mind that this is not free money. Whether
you realize it or not, you have already paid for those points.
Managing your account online is a great feature for students.
For starters, just about every student has access to the
Internet and can easily access their credit card statements. The
second great reason for this is that the parents can also
monitor the activity on the card even if they are thousands of
miles away. This kind of accountability for impressionable young
students is an excellent way to keep them from getting
themselves into trouble. It also keeps the parents from getting
stuck paying their kids huge credit card bills.
For a student credit card it is important that they have a lost
or stolen card feature that guarantees protection against
unauthorized activity. Lets face it, sometimes kids are not as
responsible as we might like them to be. Having this protection
goes a long way in easing the parent's mind when they hand their
student a credit card