Student Credit Cards Explained

Understanding Credit Card Terms: Student Credit Cards

Student credit cards, which are available through a wide variety of credit card companies, cater to the college-level student population. Quite often, reward points or dollars are attached to these credit cards in an effort to attract new credit card users. These incentives are typically directly associated with the level of spending that a credit card holder achieves.

In most cases, the student can earn a percentage of the total amount that they charge, typically ranging between 1 and 5% with the lower end of that range being the norm. Rules can be attached to the redemption process, such as the total that must be earned prior to redemption or the frequency with which the rewards can be claimed.

Other incentives are also often attached to credit cards for student users. One of these incentives is to offer a 0% introductory rate for the initial months of a new credit card account. In many cases, the annual fee might also be waived for student credit card holders. These facets only make the credit cards that much more appealing.

Although the spending limit for students often begins at a low level, it is possible to have the limit increased after responsible use of the card. Students who are unable to obtain a credit card based upon their own merit might be able to receive one that is attached to the credit card account of a parent or guardian.

Unfortunately, the interest rate that is charged on some credit cards meant for students can be higher than normal consumer cards. Therefore, it is essential that every student who intends to obtain a credit card reads the fine print and understands the restrictions and limits attached to the credit card that is being considered.

Make your next credit card decision a knowledgeable one. Comare student credit cards now or get answers to more frequently asked questions about credit cards at our credit card tips and advice center. Learn more about the options that may be available before applying for a card.

Posted in Credit Cards, Personal Finance

Email this post