Every student needs money to payoff their college expenses and others . If the student is working somewhere then he/she can manage the money but if he/she is not working anywhere then he/she needs to ask for money from their parents . But the problems arises for those who don't have their parents , in such condition a student credit card can help them out to their financial problems.
Student credit card is same as other credit cards and many companies provides good offer on this. Some aggressive companies offer lower interest rates and free application forms. Mostly parents deposit money to the credit card company for the first credit card of their child.If you are using a credit card you always need to maintain your credit history. So before using a credit card you should know the importance of credit report so that you can make it strong for you in future. There are some popular credit cards which you can go for like American Express, MasterCard and Visa.
Student credit card is same as other credit cards but there are some differences come into picture for student credit card users, because they lack prior experience in using credit cards .
In countries like USA, Canada, UK, education is expensive and most of the students fail to manage their finances. The credit card companies are smart enough to target these college-going teens. It has been estimated that an average college-going student’s credit card crosses a credit limit of USD 7,000. Most of them have more than one credit card. These inexperienced and over enthusiastic students use credit cards haphazardly. As a result of which it usually crosses the card limit and they end up paying the principal plus interest, which can range up to 15-20%. Then they fall into debt so , you always have to keep these points in mind.
To save students from all these debt problems the student credit card issuer companies usually requires a parent of the student to co-sign the application form of the student credit card. And the limit of student credit card is also less than others.
That was some useful information on student credit cards . Follow my blog for getting more information on Credit cards and other financial matters.