Analysis of a Student Credit Card

Student Credit Card generally refers to those types of credit cards that are specially marketed for the usage of high school, college and university students. These cards are used by the student to meet their monetary requirements such as paying off educational expenses, living cost and fooding, holiday trip to & from home and other miscellaneous expenses. Students usually have very short credit histories this means that they often don’t qualify for a traditional credit. Student credit cards help to bridge this gap and allow them in creating a good credit history also to enjoy the other benefits of the card.

Student credit cards have numerous advantages. Many don’t require a proof of income and have low interest rates on them. It allows student to pay bill or make purchase online or over the phone with great convenience. There is also something called buyers protection against theft. Student cards provide funds in an emergency situation and also avoid the risk of carrying cash or check. Responsible card users may be able to establish an excellent credit history if they pay all their bills on time and keep their credit balance low. Buying a product above $ 100 is protected by consumer protection act, thus it’s helpful for a student while buying anything above that level like air tickets or a new laptop. Many of these cards offer a reward system or cash backs on purchase which may be also beneficial to the students.

Before applying for a student credit card certain points are there to check out. They are………
1. Low limits
Students must go for a credit card that offers them a low limit since they live on a tight budget and high limits are not realistic for them.
2. Low rates
At the introductory level many student credit card offers a rate of interest of 0%.After completing a time span of 6 months or so, students need to start paying regular credit card rates which can be quite high. So before signing the paper it is important to check the fine print to make sure what you will have to pay after the introductory period.
3. Reward programs
Many cards offer a reward programs that allow a student to collect points that can be exchanged for other bonus. Sometime you have to purchase frequently in order to gather the bonus points.It can be act as lucrative trap for the student. Check the card offer paper carefully to avoid such circumstances.

4. Online accounts
By selecting a card that lets one to manage his /her accounts online, increase the chance that the card will be paid on time.

5. Good security policies
It is important to check the remedy to be provided in case of fraud or theft, in the card offer paper. One must understand what happens in such cases clearly.

6. No fees
Many credit cards that are offered to students are free credit card. Check them in order to minimize the expenses.