May 10, 2011

Student Credit Cards: Starting the Road to Excellent Credit

Utilizing Student Credit Cards

Many times, students do not have enough credit to obtain a regular credit card. However, all students should keep in mind they can take advantage of student credit cards. These types of credit cards are not accessible by people not enrolled college course classes. When a student obtains a student credit card and effectively makes payments on any purchases charged, they are able to establish a positive credit history, which eventually enables them to qualify for regular credit cards.

 
What is a Credit Card?

Credit cards are provided to consumers through a lending institution. To keep it simple, a credit card can essentially be thought of as a loan. Once a person obtains a credit card and makes purchases with it, they must then make payments to the lender of card. Most credit cards are accompanied with fees and an annual percentage rate. Many students find they are easily able to qualify for student credit cards because lenders generally only issue them with low credit limits. A low credit limit enables a student to begin establishing a positive credit score without becoming overwhelmed with debt.

Student Credit Card Advantages 

Many times, students will obtain a student credit card to help them pay for school related expenses, which often include books, tuition costs, and more. This type of card can also be used as a form of emergency fund, in which the student only utilizes the card when unexpected expenses are incurred.

One of the most convenient aspects of student credit cards are they allow a student to rid of carrying around cash. It is better to lose a credit card than cash. If cash becomes lost, it cannot be replaced. However, if a student loses their credit card, they can simply call the credit card lender and be issued another one. Most times, these types of cards come with the added bonus of fraud protection, which allows a student to rest assured they will not be responsible for any purchases made on the card that they did not authorize.

Purchases made on a student credit card can easily be tracked and recorded, allowing a student to avoid having to keep their own record. Most students will opt with receiving their monthly statements online. Online statements can be accessed at anytime and a student can review the statement to see all the purchases they have made.

Many students in college do not work, making it difficult for them to make large purchases. However, with a student credit card, large purchases become easier to make. These large purchases often include computers or other electronics a student needs in order to effectively complete their school assignments.

Search Online for a Student Credit Card

Anytime a student obtains student credit cards, they should make sure they understand the fees and annual percentage rates associated with the cards. The best way for a student to obtain a student credit card is by searching for one online. With a quick online search, a student can find one that best fits their needs and wants, as well as one with reasonable rates.

About The Guest Author: Noelle Towler is passionate about helping consumers cut through the marketing hype and find the right personal finance products for their needs. Noelle is one of the founders of Secured Credit Cards 4U which compares student credit cards, secured credit cards and other types designed to improve credit scores.

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