Readers: This is article 9 of 25 from my no-nonsense “Credit Card Basics” quick-reference series.
Student credit cards are specifically targeted at younger people who want to build their credit. These cards usually have higher interest rates than other cards because the people who use them have a limited credit history. Even so, by law, all applicants must prove that they have enough independent income or savings available to pay the bills — otherwise, a co-signer is required.
To determine if a student card is right for you, consider the following pros and cons:
You should avoid getting a student credit card if:
- You have trouble controlling your spending
- You lack the discipline required to pay off your credit card bill in full on a monthly basis
However, if you’re financially responsible, student credit cards offer several key perks:
- Establish a credit history. Lenders offer lower interest rates and higher credit limits to people with favorable credit reports.
- Convenience. Credit cards eliminate the need to carry cash.
- Money management. Monthly statements make it easy to track your expenses.
- Other perks. Most student cards offer the same consumer protections, and extended warranties that regular cards do too.
Photo Credit: GotCredit