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If you are a college student, acquiring a college or student
credit card is the easiest way to build a good credit history.
Perhaps you have seen credit card applications displayed around
campus. The application process is very simple, and most people
are approved. Although obtaining a credit card is perfect for
proving credit worthiness, it is essential to responsibly manage
credit.
Advantages of a Student or College Credit Cards
Aside from the obvious advantage of establishing credit history,
student credit cards are ideal for basic purchases. For the most
part, college students are strapped for cash. Hence, a college
credit card may be used wisely to purchase semester books and
pay for other unexpected expenses that arise. Furthermore, some
college students obtain a student credit card to purchase an
inexpensive used vehicle.
On average, student credit cards have a low limit. Average
credit limits are about $1,000. Credit card companies recognize
that first time credit card users may become overly excited with
seemingly "free money," thus, the limits are kept low. Low
credit limits make student credit cards easier to manage. As you
build credit, the credit card company will gradually increase
your spending limit.
How to Use Credit Wisely
To avoid accumulating excessive debts, college students must
resist the urge to buy whatever they want. In some instances, a
college credit card company will approve students for a large
credit limit. This is dangerous. Do not purchase items you
cannot afford. By doing so, you will likely join millions of
other people who are drowning in debt. Rule of thumb: payoff
balances each month. This contributes to you remaining debt free.
How to Apply for a Student Credit Card
To get approved for a student credit card, college students must
be employed. The application will request employer, income,
school, and personal information. Moreover, the creditor will
review your credit report. Prior to completing the application,
you should read the terms of agreement. What is credit card's
introductory rate? What will the rate be after the six month
introductory period? Furthermore, what are the late fees, and is
there an annual fee?
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