Even though there have been changes that make it more difficult for students to acquire a credit card, there are still options for college students who are looking for a line of credit to help them meet certain costs throughout school, but these cards are not always beneficial for students who may not have proper financial practices in place. Currently, there are a variety of lenders who offer credit cards or are promoting prepaid debit cards, but there are certain aspects of student credit cards that must be reviewed before a college student is allowed to access a line of credit as they may be helpful in some regards.
Certain students may need their parents to cosign, and this could make the review process of which card is best or figuring if a student credit card is right for a particular situation much simpler, but in cases where someone applying for a student credit card is old enough and shows a stable income, like that from a part-time job or internship, getting a card may not be as difficult. Yet, current rates here in July that are being reported on student credit cards are averaging around 13%, with some cards showing a range that may go from below this average all the way up to 20% or higher.
Also, many rates on these cards will be variable, so students need to make sure they understand their rate may change at a later time, as there are some cards that offer low introductory rates but will see rate increases later in the year or after a certain period has passed. Understandably, students need to be educated on how these rates will affect the overall amount of money they pay on their card and charges, particularly if a balance is carried from one month to another, yet there are some students who can benefit from responsible student credit card use during their college years.
First, students must make sure that they have the income to pay off charges, or if a parent wishes a student to use a credit card for various reasons, it simply must be stated that the funds to pay off charges will be available. Yet, some students who use a credit card are able to benefit from doing so as they can purchase books or supplies, and at the end of each month, pay off the amount they had charged in full, which can reflect positively on their credit score.
Ideally, students would only use credit cards for emergencies or to make small purchases and promptly pay them off in the hopes of establishing a positive credit history early in life, but it is well-documented that students do tend to misuse credit cards as well, so making sure that the reasons behind getting a student credit card is for the purposes of building a credit, meeting certain necessary costs, or to use for emergencies, but also having funds available so that a balance will not be carried are just a few steps to take that should cut down on problems related to student credit.