Student Credit Cards And Building A Credit History–Can Student Cards Help A Credit Score And Later In Life?

New laws have made it more difficult for credit card companies to take advantage of students who may want a credit card. There are certain rules and regulations in place that will not allow a student to obtain a credit card unless they have a cosigner if they are under age and new credit card bills show more detail as to what a cardholder owes.

It’s for this reason student credit cards can now be an easier way for student to build a credit history and improve their credit score for later in life. Student credit cards come in all shapes and sizes and many people might even consider a secured credit card when it comes to improving or building a student’s credit history.

A great credit score and a phenomenal credit history can help someone to achieve a variety of things later in life like buying a house or even getting a job. Many students exit college and have little to no credit history, but using a student credit card or a secured credit card, a student is going to be able to make purchases throughout their college career and slowly build a credit history.

While some student credit cards and secured credit cards can be quite affordable, it must be understood that a credit card is not a debit card and charges must be paid off as quickly as possible. Interest will begin to mount if only the minimum monthly payment is made each month on charges and any student who spends more money than they bring in will find themselves in a bad financial position.

Secured credit cards require a deposit of money into a bank account to secure the card but they can be quite affordable for some students. Also, having a cosigner can be helpful as well when it comes to getting an affordable rate on a card. It will be important, however, that secured credit cards or student credit cards only be obtained by those individuals who are looking at building a better credit history and credit score, not simply as a way to buy more goods.