What are the benefits of student credit cards?

Answered on October 10, 2010
Updated on October 10, 2010
The content is accurate at the time of publication and is subject to change.
James Williams James Williams
Student credit cards are an interesting strategy of many credit card issuers. Students belong to the part of the population that has a steady expenditure and usually some bills to pay. Invariably students get money from their parents or guardians which means, most of them have a decent income source. These are the reasons why a lot of credit card companies offer students in the campuses, credit cards with good incentives. From the students' perspective, there are quite a few benefits of taking the students' credit card offers. To start with, those with no credit history find it very hard to get their credit card applications approved. Students are an exception to this. Moreover, without a credit history, the interest rates on the credit card or the loans approved for the customers are sky high. The first benefit of the student credit card is that it allows the students an opportunity to start building a credit while they are still in college. Most of them have a steady income in the form of pocket money and lot of expenses too such as phone bills, books, food etc. All this can be made to count by using a credit card and getting a history so that by the time they are out of college, they have a decent enough credit rating to go for credit card with good rewards and lower interest rates. As soon as one gets a job, getting a vehicle and having insurance coverage are some of the expenses that are almost mandatory. But with a credit history built through students' credit cards, you can get vehicle loans for lower interest rate insurance for lower premiums that those without a credit history would be able to get. The greater the expenses and the more consistency one maintains in paying the bills without letting the outstanding dues stay the better would be the credit rating. If students can sensibly manage their pocket money through the credit cards and use the monthly expense report to keep a check on their expenses, they can build a good credit history which will help them with better offers in the future. Student credit cards usually need a guarantor, and so the credit history on the student credit card often reflects for the guarantor as well. It means that it can work both ways and while a good credit history will reflect well for both the guarantor and the student, a bad credit will also poorly reflect on both of them.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

User Comments about This Question


If you're getting your first-ever credit card, you'll want to look for a card that's designed for folks with limited credit, or no credit. It can take a little while to build a credit rating, but the good news is that it isn't hard to do. Getting a credit card is the first step. If you can find one that also earns rewards, even better. And don't worry – there are plenty of such cards out there. Look for a card with "student rewards" in the name. A store card can be another good choice. You can use them for shopping through a website. Retail store cards may have limited use but will help you...
If you have a stable income that exceeds your expenses and have a valid social security number, you can qualify for a student credit card. Student cards are created to help students start building their credit history. They often come without application and annual fees. As for the monthly fees, they will depend on your card balance and the interest rates. You can avoid interest payments, though, by paying off your credit card balance in full each month. All your credit card payment activity will be reported to the major credit bureaus, which is important when you build credit. Try to make at...
No, you won't need a co-signer to apply for a student credit card or Amex Everyday. In fact, there are not many issuers that would allow co-signers. That is actually great as cosigning is a complicated thing. Having your own credit card from the beginning is a great way to learn finances, responsibility, and to start building credit. You may qualify for a student credit card as long as you are at least 18 years old, have SSN, U.S. citizen/resident, and have verifiable income. To qualify for the Amex Every Day card, you should have at least good credit history. If you already have some...

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There is a credit card for any credit and for any purpose. Whether you want to start building your credit from scratch or earn rewards on purchases, save on gas or travel for free, you can find a good credit card offer for that.