What are the benefits of student credit cards?
Answered on Sunday, October 10th, 2010 by
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.

Other Popular Student Credit Card FAQs

While the GameStop credit card allows to build credit history, we would not recommend it as a first credit card because the card is basically designed for people with established credit. Also. we wouldn’t recommend you this card because of its high interest rate. Another disadvantage of the card is that you can’t use this […]

Continue »

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.

Continue »

  1. What is your question?
  2. Please, enter your question and contact information so that we can send our answer to you by e-mail.
  3. (valid email required)
  4. (required)
  5. Captcha

Best Credit Offer
Best Credit Cards from Credit-Land.com
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 5 / 5
Copyright © 2001-2018 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

Disclosure: Not an access card.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.