Student credit cards are issued by various banks to students as an introduction to building credit. These are very easy to be approved for because the banks issuing the cards are looking for the very basic credentials. There’s no previous credit required, making it possible for virtually every student to begin building their credit score.
Some of the main benefits to student cards are that it will allow students to buy what they need and pay the amount off in a slower amount of time. There are some very low APRs given out to students as well as some other incentives that can be advantageous, including cash back and discounts at merchants. Many times there are no annual fees and limits are set low to avoid a student getting too far into credit card debt.
There are several banks offering credit cards to college students. Not all of the cards have great deals that will help a student. Some of the pitfalls to avoid are taking on a credit card that has a high APR or an annual fee. Annual fees are a way to throw away money.
Cards are out there that don’t charge annual fees, so it’s important for students to compare options.
Many sites exist that will do the comparisons for a student. This way a student will be able to see the APR, the annual fee as well as other features of the card. By doing some research on the details of the card, it will be easy to avoid some of the worst credit card offers. Introductory APRs are the biggest thing to be on the lookout for.
Student and regular credit cards are virtually the same in many ways. The main differences are student cards have smaller lines of credit and are easier to apply for if you have a co-signer.