Get a Student or Regular Credit Card

Posted on July 4, 2010 | Category: Money Trivia

What is the real differences between the student and the regular credit cards?  Some parents did not like their college students to take along credit cards, maybe it was the fear or overspending and ending up with bad credit, having personal bad credit loans in their future was not a good thing to conceive.  Now with the student credit cards they feel more apt to allow them to have these cards and budget their own financing and learn on their own.  Letting them be on their way to establishing their own good credit history.

Today many banks and other lending institutions say that someone with no credit or bad credit tend to be some sort of outcast in today’s society.  Having no credit or bad credit is like telling someone you can’t control your spending or budgeting abilities.  Tells them that you may be on the road to having to utilize bad credit loans in the future.

Back to the college type credit cards, they are exactly like the regular cards, but have different student rewards.  They will carry a lower interest rate, sometimes the student can actually negotiate  interest rates or request lower ones if they keep their grades at a certain level.

The main difference is, the student credit card is a secured card.  The parents actually have the control, they set the students credit limit.  Also the parents may link them to their account so that they may see how the credit card is being used by their kids.

The typical student card has no annual fee and they will have only a $500 maximum credit line.  They consider this to be a fair and effective amount for the teens who are learning to control their spending and budgeting their way through college.  But all in all it is a great way for them to build credit and learn to use it wisely and maintain it.

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