Student creditcard
Today there is a wide array of credit cards designed specifically for college students. One of the major selling points for these cards is that students may use them to establish a good credit history and that they come with features that are attractive to the college set. For example, the cards themselves often come with bright, contemporary designs and key cards that offer easy access.
Some of the added features offered with Student credit card are online banking options, the ability to build a credit history, zero liability on unauthorized transactions, and even online credit management resources that help students build strong credit . Some student credit cards charge higher rates and offer perks that appeal to students. Discounts in major chain stores that cater to students are common. Photo cards offer students a greater level of security should their cards become lost or stolen.
The most important features of a student credit card are:
(1) There is no lower income eligibility limit, which allows even a person who doesnt earn money to obtain a credit card.
(2) Such credit cards are simpler to obtain than normal credit cards, with no income tax returns required. The only documents required are proof of residence and proof of enrolment at any institute .
(3) A major feature of most student credit cards is that they offer a lower cash limit and revolving credit limit, along with a lower service charge on the revolving credit limit.
(4) Finally, there is no joining or annual fee, and the card is generally valid for a period of 5 years, and eligible to students who are 18 and above.
College students can often get credit cards even if they have no income at all and are using student loans for living expenses. A problem with student credit cards is that most credit card companies encourage students to use the student credit card to pay off their student loans . This plunges them deeper into debt, and often students are unable to pay back the loans on the credit card . The credit card companies compensate for a low monthly interest fees with an unusually high annual percentage rate so the bill must be paid on time and in full . Students should therefore look for a credit card that will meet his need by comparing interest rates, fees, and perks before making a final choice.
Some of the financial institutions that offer student credit cards also offer numerous opportunities for students to learn about establishing good credit for the future. These tools can include online tutorials and, sometimes, access to live consultants. The best feature for students who are on a tight budget can be the low interest rates and easy online banking options .
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