Did You Know That You Can Get a College Credit Card?
As its name would suggest a college credit card is simply a credit card which has been specifically designed for college students and which is perhaps more commonly known as a student credit card. The idea behind student credit cards is that they allow students to learn all about credit cards and to experience the benefits of credit cards early in their lives. In effect, a college credit card is an introduction to the world of credit cards and, although s student may have had experience of using a supplemental card on a parent’s credit card account, represents the first credit card which the student will have in his own right.
To all intent and purpose college credit cards operate in exactly the same way as normal credit cards but there are a few differences which you need to know about. These differences arise because the credit card companies are taking something of a risk by extending credit to people who will generally not have any credit history and thus need to protect themselves from the increased risk of debt on student credit cards.
The first important difference is that the credit card companies require a parent or guardian to co-sign the student’s application for a card, so that the parent or guardian is aware that the student is applying for a line of credit, and will also require the parent or guardian to stand as guarantor for the account. In other words, if the student defaults on the card then the parent or guardian will be legally liable to make good on the debt.
The second difference with a student credit card is that the credit limit is set at a lower level than that seen on normal credit cards and typically at between $500 and $1,000. This limit is also set at a reasonably low level because this is considered to be sufficient to meet the needs of the vast majority of college students.
Finally, the credit card companies also offset their risk by setting the interest rates on college credit cards (the card’s APR) higher than normal to try to stop students from overspending on their cards and to encourage them to keep their spending within the amount which they can afford to pay off each month.
On the surface college credit cards may not seem very attractive to those of us who are used to using normal credit cards but in fact they can be a very useful tool for teaching youngsters to handle credit responsibly and have the added benefit of providing students with the ability to build up a good credit record, which they will find very useful once they leave college.
College is a very expensive time for most students and there are very few students who will make it through college without a mix of parental support, grants and scholarships, federal loans, private loans and a part-time job. This is hard enough in itself to manage and all too many students have problems coping with this and end up having to refinance their loans, often through student loan consolidation. If we now add a credit card into the equation we might just be providing the straw that breaks the camel’s back for some students.
Whether or not college credit cards are a truly good idea or simply another marketing ploy by the credit card companies is something which you must judge for yourself but, whatever your view, they are certainly something which must be approached with both eyes open.
Watch the video related to credit card
Federal regulators are expected to make sweeping changes to credit card fees and rates in decades. Maggie Rodriguez spoke with finance expert Jordan Goodman about the changes.
Help answer the question about credit card
Is a credit card number really valid for a deposit on a service?I own a small business which often takes credit card numbers over the phone as a deposit. We recently had a customer no show, and she contested through her credit card company when we charged her (she claims it wasn't explained when she gave us her #). The credit card company took her side and said it is policy to allow anyone contesting to get their money back if there is no signature. How can this be? So many hotels and services take card #'s as deposits!
October 30th, 2010 at 8:44 am
Hey Jessii,
The most important thing to remember when getting a credit card is that you will not have to pay any fees or interest if you pay it off in FULL every month.
That said as a student you should focus on a student card to begin building your credit. Citi has an excellent card, the MTVu which gives you 5% back (that you can use to buy gift cards and plane tickers, or even cash). You get 5% back from restaurants, book stores (you will spend $500 a semester in this category!), movies, and even most purchases off Amazon.com.
http://www.credit-cards-resource.com/citi/mtv/
Good luck with school! It is awesome that you are starting to build your credit at an early age, it will really pay off down the road if you take care of it.
October 30th, 2010 at 9:48 am
The first answer pretty much said it all. But please let me stress that you do not under any circumstances sign for credit for anyone else other than a spouse.
That's a lot of interest. You might need to contact a credit counseling service and get them to help get the credit card company from haraassing you. But first you need to cancel that credit card. Sounds like the old roommate might have used if for more than a gift. And that's a nice gift from someone with no money.
October 30th, 2010 at 9:13 am
What kind of insane advice is this? How can you in all seriousness be promoting credit cards to people who HAVE NO JOB! DER! And we wonder why America is drowning in debt! Get Real. Why not encourage our students to save and invest instead!
October 30th, 2010 at 9:44 am
These cards are for teens/Students who want a credit cards or to build there credit.
You can get it online,
student-credit-cards1 . blogspot . com
October 30th, 2010 at 7:25 pm
Is a student credit card the same as a regular credit card, except with a lower balance “500 dollars”. Or is it strictly for paying for school.
Please help.
October 31st, 2010 at 4:41 am
When you apply for fafsa, you are applying for grants and loans in your name only – not your parents. The maximum a dependent student can receive per year in stafford loans is $5,500 (freshman year, $6,500 sophomore year, and $7,500 junior/senior years). If you don't qualify for grant money, then you'll need to find a school that's less than $5,500 for the year if you don't have any scholarship money coming in either. Your parents can apply for a Parent-PLUS loan; however, this is like any loan and requires a credit check – which your parents may or may not pass. The good news is that if your parents are denied a PLUS loan, then you will qualify for the amount of stafford loans that independent students are (you are still a dependent student, your loan amount just increases) – $9,500/freshman year and upwards. Good luck!
October 31st, 2010 at 8:05 am
Well, as you will find in life, credit is everything. It's important not to abuse it as most people do, but going without credit can be a very bad thing when you go to buy a house, or a car for example.
I was in the same situation a few years ago, and I ended up having to get a secured card. I went through orchard bank ( http://www.orchardbank.com )
Now I own a home, have several credit cards (of which I use very wisely, and only to improve my credit score) and a personal loan. Check out OrchardBank – they are a HSBC credit card company, so you know it's a reputable brand
Good Luck!!
October 31st, 2010 at 4:48 am
getting a student credit card is so easy, a cave man can do it, Wells Fargo bankers are always begging me to get one whenever i go there…
October 31st, 2010 at 1:44 pm
Is easy being responsible, I have 2 credit cards, recently applied for another one therefor cancelled one I had, because I have established myself that I won’t have more than two credit cards. In five years I am with them, I had only paid interest in 3 cycle periods, I am always looking forward to full pay my balance, even if I stay with little money after that, is so easy, I don’t know why is so hard for people to control them self with the use of credit cards. lol.
October 31st, 2010 at 9:04 pm
0% APR loans can be very attractive but also very risky. Below are some benefits as well as some of the risks:
Benefits:
* Not paying interest!
* Buiding your credit history, especially at your point in life as a recent grad
Risks:
* Hidden fees
* An APR that could change suddenly
– If you should miss a payment; your APR could rocket to over 20%! Check the fine print to see what you might be agreeing to!
* It's not 0% APR on all of the credit card's balance
– You need to once again check the fine print for this bit of "trickery". Some cards advertise 0% on balance transfers, some on new purchases. Depending on your situation, the 0% might not even be a benefit. Further, miss that little detail, you might not have a balance to transfer, think you are realizing 0% on your new purchases, and then get shocked by that 20% in as little as a few weeks
In short, you need to first determine the reason for acquiring your new line of credit: Set your goal. If the credit offer helps you to that end, it might be a good idea. Plan a head and be safe with your credit!
November 1st, 2010 at 1:25 am
Do not close the card cause it lower you available credit line. You also can use this service to pre-estimate future scores for different scenarios of credit card payments. – creditreport.fateback.com
October 31st, 2010 at 6:30 pm
i have a 3,000 balance on a bank of america card if i pay off the balance and cancel the card will my credit be affected?
November 1st, 2010 at 12:00 am
i agree 1000%
November 1st, 2010 at 10:17 am
November 1st, 2010 at 6:50 pm
I got through college with $11,700 in debt plus about $1,500 on my credit card, but it could have almost not happened. I originally applied to public universities but couldn't get enough financial aid (including federal loans) to cover the total cost even with my parents' contribution. So I started in community college, which I paid for without going into debt by working part time and during the summer. I got almost straight A's in community college because I knew I would need to compete when I transfer. I decided to apply for college in a different state where tuition was cheaper. I also applied to a private college in that state but didn't expect to be able to afford it. I figured I could either live in the other state until I became a resident or I could join the military if it was still too expensive. It ended up that when I got my financial aid offers, the private school gave me a huge scholarship and I could finally afford to go. It was an affluent school that was probably trying to attract students with high grades in a wealthy region of the country. I was pretty lucky though because some of the people at that same school had $30,000 in debt or more.
You'll probably do fine in the real world, but you might have to wait until some of the baby boomers retire before you get an opportunity to move up.
November 2nd, 2010 at 12:59 am
Jefferey is right. And those rates are just their to hook you in.. it is that rate + plus another rate to get you yours. My advise is to avoid a credit card like the PLAGUE until you have a full time job and are not a student. Any time ANY student gets a credit card to help them it ALWAYS ends badly. ALWAYS. The time will come when you can get a credit card…. but that time is certainly not now when you aren't working full time.
Before you know it you will owe 4 times more than what you intended and after a month or two you will miss a scheduled payment…even by a few hours and your "Variable" interest rate will jump to 30% as a result. Meaning the balance will have an interest on it so high that a minimum payment will only pay down the balance by a few dollars and you'd be paying on it for 20 years before you paid it off. Like I said, this WILL end badly.
You never intend on using it… and everyone has to learn the hard way. I'm just trying to save you the trouble… lol
November 1st, 2010 at 10:45 pm
This piece of crap video does not explain how the magnetic strip of the credit card works.
FUCK YOU ASSHOLE.
November 2nd, 2010 at 1:37 pm
a crock of shit………yeah right.