The Scoop On Student Credit Cards

Posted by Nick Niesen on October 29th, 2010

Student credit cards are cards issued to college students and they provide young adults with an opportunity to begin building a good credit history. College credit cards are often marketed on college campuses through free giveaway promotions. Students are typically rewarded with free merchandise such as t-shirts, frisbees, and more for filling out an application.

As far as the other details go, student creditcards aren't very different from any other credit card. The biggest difference is the fact that these cards for students are usually offered to individuals who have no prior credit rating or history. While credit card companies certainly assume greater risk when extending lines of credit to students, it's a gamble they're willing to take.

Most student cards are initially issued with a relatively low credit limit, usually $1,000 or less. After a 6 month probationary period however, the student can typically request an increase in their credit limit.

So, as a college student, should you take advantage of these credit card offers and apply? In a word, yes. Student credit cards provide an excellent opportunity for college students to begin establishing their credit reputation, but care must be taken to always use the card responsibly. In my opinion, there should certainly be more information made available to young adults on the topic of credit and how to use it in a responsible fashion.

There are many different credit card offers available for college students, so how do you choose the best one to apply for? The 2 most important factors to take into consideration when applying for any credit card are:

1. What is the credit limit that you can realistically expect if approved?

2. What are the fees associated with the card and how is the interest rate compared with other offers?

Whatever you decide, remember to use your newly acquired credit card responsibly, make your payments on time, and take care not to overextend yourself financially.