Why Choose Student Credit Cards Over Regular Credit Cards

January 23rd, 2009

While most students get a student credit card, they are actually eligible to apply for even regular consumer cards. However, credit cards geared towards students actually have some perks that may prove more lucrative than the typical consumer offering currently on the market.

For one, they have lower credit limits to help students, relatively new entrants to the credit market, to better manage their spending. They also don’t have co-signer requirements, usually a must for traditional credit cards when the applicant has no previous credit history. More than being a spending tool, student credit cards are really geared towards helping students begin to create a good credit history.

When the students graduate and leave school, they can opt to have their credit cards converted into a regular consumer card, hopefully with higher credit limits and better APR. While some credit card issuers will cancel the card if the cardholder is no longer a student, others may let you keep the plastic under the same terms. In some cases, student rewards – like cash back on restaurants, record shops and clothing stores – can be lucrative enough to warrant keeping it with the same terms, low credit limit and all.

If you are a college student, we highly recommend sticking to a student credit card. Getting approved for one will definitely be easier and the benefits are usually spot-on for the needs of college students. While the low credit limit may be frustrating, it helps ensure that you won’t get into too much debt while you’re young and your credit record can begin on a positive note.

noel Posted in Student Credit Cards

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