Credit cards for college students may offer a variety of rates as there are indications that these cards are still popular among many students despite changes in practices that financial institutions may use to market these cards on campuses, but for men and women in school who may be looking for a card in the month of May, there are not only some options that can be affordable but there are also still problems that may come from the use of a student credit card in college despite many advertised benefits that these cards may offer. It’s for this reason that students must compare student credit card options and rates, as well as read the fine print for any opportunities that may be available to them while they are in school.
Many students are aware that changes resulting from the CARD Act in March 2011 now prevents banks from offering gifts to students, like items that may be acquired at the time they sign up for this particular type of card, but students who are under 21 years old must have a cosigner or to show proof that they have sufficient income in order to handle the responsibilities that come with this type of credit card. While many student credit cards often range in interest rates from around 13% to as high as 22% or more, these interest rates that are being made available in May could not only increase in the future but it will depend on a student’s particular situation as to what rate they may receive if a student credit card is sought out.
There are some students who may have a parent cosign for them and get a credit card at a credit union, as an example, in the hopes of getting a more affordable rate on these cards, but when it comes to students using a credit card in college, there are some benefits that can be gained but the dangers that must be avoided as well. Some students may seek out a credit card as a way to begin building a credit history, due to the fact that certain students may have a part-time job or an internship which can be used to pay off debts they may acquire through the use of a credit card. This can increase a student’s credit history and score to a more positive range, as many college students may not have much of a credit history to begin with, but traditionally, students have simply found themselves in a great deal of debt as a result of misuse of their card.
As May is the month where many students are exiting college and focusing on financial aid or preparing for summer activities, when fall rolls around and students begin returning to campus some banks will start using methods to draw students in and potentially sign up for credit cards. Since there are new restrictions on this practice, banks may be using craftier means to offer cards to specific students, so caution needs to be taken as a student credit card can be beneficial, but could also lead to substantial debt while in college.