How to find the best student credit cards?

Student credit cards can have both positive and negative side to them. The “goody” side of these cards enables students to pay for essential items such as gas, repair, and other emergencies, without having to ask their parents for pocket money every now and then for these routine expenses.

If used wisely, best student credit cards can help in learning financial management from an early age and thesey can make students feel independent.

On the flip side free student credit cards can lure students and , many students abuse their credit cards by using them beyond their means. This causes anguish, loss of face and spoils credit ratings.

How can a student obtain a credit card?

It isn't so hard to obtain a student credit card. Credit card companies, in fact, want students as their customers as they know that in case of any payment default, their parents will bail them out. And even though a A student may not have any past credit history and yet get a credit card;

here's is how? students can get a credit card:

• Parents can help students get a credit card by arranging for a supplementary card or an additional card on their existing card. In this case, whatever the student spends is billed to his parent.
• When you apply for the student is applying for a credit card and the parent should co-signs his application When the parent co-signs the application then it becomes their his responsibility to pay up in case there's a default.
• The student can open a checking amount and agree to maintain a certain credit limit in his savings account. In case he fails to pay the credit card dues, this amount can be taken by the bank and paid to the credit card company.

Should students go for credit cards?

There may be a lot of negativity surrounding credit cards. Despite that - provided they are used diligently - credit cards are not all that bad. And, these are the reasons why.

The first and the most important reason for a student to own a credit card is that it helps him in building a good credit history. Of course, it goes without saying that a good credit history can be built only with correct credit card usage.

It isn't a good idea to graduate without having a credit history. Assuming you graduate without a credit card, you will find it tough handling financial situations. For example, if you need a credit card, your application may be turned down because you have no revolving credit history. Landlords normally check credit history before renting out their apartments. So, you may find it tough to rent an apartment if you have no credit history.

Without a credit card you will find it tough to rent a car or get a good car insurance policy.

Students can use their credit cards for routine expenses and spare the trouble of asking their parents for allowances every now and then.

Student credit cards and the role of academic institutions

Academic institutions routinely allow credit card companies to market their cards on campuses. Most likely, they get a cut out of credit card sales. Anyway, they make it a point to inform students about the good and evil aspects of credit card usage.

No matter who helps in getting a credit card and no mater who gives adviseadvice, ultimately it is the student's responsibility to check how he treats his credit card.

Tips for using student credit cards effectively

Here are some ways a student can adopt if he wants to use his credit card with responsibility:

• Do not succumb to peer pressure. Just because your friends are spending more than you do, do not ape them and go on reckless binges that need out-of-control expenditure.
• Proceed with caution. First, get a low-limit credit card and use it diligently before even considering another. Once you establish a level of comfort with one low-limit card, only then should you consider another. Stay with one or two low-limit cards and pay your bills regularly. Remember, you don't need to operate many cards to build a reputable credit history.
• Sit down and pen a financial plan. Make a list of cash inflows (sources from where you will be getting cash) such as cash from your parents, scholarships, money from part-time jobs, and graduation loans. Now make another list of cash outflows such as college fees, groceries, and books. Now see how the totals stack against each other and decide on your future credit card usage.
• Avoid using credit cards on small purchases such as burgers or colas. Think about it: Do you really want to pay interest and other charges for a bottle of cola and some snacks?
• Credit card companies enhance credit limits if you make payments on time. Don't let that tempt you. Stay within your budgeted course.
• Do not take a cash advance against your credit card. Cash advances have an upfront fee built into them and carry a higher rate of interest and they have the potential to increase your spending habits. Just avoid them.

Best student credit cards are those that can help the student learn financial management and not bring them into a debt trap.

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