Credit Cards for College Students

College credit cards are the credit cards that are specially designed for students. College credit cards are more popularly known as student credit cards. College credit cards allow students to experience the benefits of credit cards much earlier in their lives.

Via college credit cards, students can learn more about credit cards and their use. For most students, their student card is the first credit card that serves as a gateway to the world of credit cards. Some other students may have used additional credit cards that are linked to their father's credit card account; for these students, however, their student card is the first that really belongs to them.

College credit cards do not differ very much from other types of credit cards in the basic sentence; they function in the same way as any credit card would. However, there are some differences, which in fact arise from the fact that credit cards from universities are used by people who have no prior experience with credit cards and who may not fully understand the concept of credit cards.

The credit card provider therefore runs the risk of offering credit cards (college credit cards) to people he is not sure of. Most students also have no credit history. In such a case, the student card provider can not be sure of receiving credit card payments on time (and not even receiving them at all).

To counter such risks, the student card provider requires the student's parent to sign the student card application form as a guarantee. Moreover, the credit limit on college credit cards generally is around $ 500- $ 1000 per month, which is lower than what it is for other credit cards (this credit limit is generally sufficient to meet the typical needs of a student).

Another risk mitigation tool used by the college credit card providers is the interest rate or APR. The APR on college credit cards is generally higher than that for other credit cards. Again, this is done to keep the students from spending too much money on their student card (and ultimately not being able to pay their credit card accounts).

However, if we viewed these impositions in a positive way, we would find that they are to the advantage of the student (who is still being trained to accept the real world of credit cards). In addition, college credit cards also help students to draw up a (good) credit history, another important advantage that is useful when the student needs a loan at a later stage of his / her life.

Student credit cards are therefore really something that every student should take into account. As long as the cards are not misused, it can be a very good learning experience to get a credit card while you are still at the university.