Can You Get A Better Rate On A Student Credit Card?

Not likely, but the advantage you have is establishing your credit early in life and being able to track your expenses.  A debit card will not help you establish credit, and if you overdraw your cash account, then you could end up paying much more in bank fees than you would have paid on your credit card, depending upon the limit and interest rate charged.

If you are thinking about getting a credit card, then I recommend reading this basic guide before you sign up.  It gives good reasons why you, as a college student, should get a credit card and the things to look out for when using a credit card.

Student Credit Cards: Basic Guide

Many students start becoming consumers of credit when they get their first student credit card in college. Student credit cards can give them a highly convenient way of making purchases; however this is also a time of great responsibility as they start their first endeavor into money management.

You need to be careful when using your student credit card. This is the time you start building your credit which will come into play when you start needing money to buy a house or a car. It is very easy to misuse credit in college. Usually it is very expensive being a college student nowadays, and it can be hard to keep track of bills and pay them on time.

However a student credit card can also be very convenient. It can teach you better money management skills. If you work hard you can start building a solid credit score. Students can also avoid carrying around cash. Many student credit cards offer protection in case the card gets stolen or lost.

There are many choices for students when it comes to selecting a card. The first thing to consider when you are choosing a student credit card is to find one with a low APR.

Many student credit cards will even allow you to accumulate points from your purchases which you can redeem for DVDs, books, CDs and other cool rewards.

If you misuse your credit card and keep making late payments, you will be under a huge debt burden when you graduate and want to buy a home or a car. A student credit card is not a student loan. Consider it as high interest loan which you should pay off immediately.

On the other hand by properly managing your payments, you can have a good credit score when you graduate. If you make your payments on time, you can also avoid the interest charges. Be careful of the late fees, they can add up quickly and diminish the amount of credit available fast.

Student credit cards generally have low interest rates but they might have a smaller maximum credit limit.

If you are a college student, you may have received a lot of credit card offers through the mail. Credit card companies want you to get hooked on their card early in life, so that you remain their loyal customer in the future.

Online applications have made it very convenient to apply for a student credit card. In addition the internet can let you shop around from a wider selection of cards right from your home. Usually it is a secure way to apply if the online site has a secure server.

Finally, you must be at least 18 years of age to qualify for a student credit card.

Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

Getting a student credit card can help establish your credit, help you manage your money better, and possibly allow you to receive incentives depending upon the credit card company you choose, but it can also get you into debt very quickly if you are not careful.  So, use it wisely --make payments monthly and on time!