Student Credit Cards: 101 (cont.)
Contributed by Nicole
Benefits of a secured student credit card
Having owned one in the past, I strongly suggest that students get a secured student credit card. Banks will commonly offer these products. Their cards where the card holder puts money in the bank as security. That money guarantees the card issuer will be paid if the card holder fails to pay the bills. The credit limit is determined by how much is secured as collateral, and parents can deposit money into the account.
To get the best possible student credit card available, some much needed research must be done. Over the internet you can compare and contrast cards from different banks and credit card companies. Some good features to look for are: low APR's,no annual fee and cashback on purchases.
The real price of a student credit card
Like every good thing, student credit cards, used in excess can prove to be dastardly. Bad credit can take many years to fix. The best way of course to avoid a financial credit meltdown, is to use student credit cards wisely. The same institutions that issue credit cards also give you helpful literture of maintaining good credit and the consequences of not paying monthly balances on time. Students and credit cards may be an amatol combination, but coupled with knowledge of the importance of good credit, it may be a great thing after all.
