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How to Select The Student Credit Card That Is Right For You

A secured card is much like a debit card. Your credit line is equal to the amount of cash you deposit into the account. So if you make a $500 deposit on your secured card, you'll be able to use the card up to $500 (minus any annual or additional fees the card issue may charge you).

Secured cards typically report your payment transactions to the 3 major credit bureaus, so you have a way to show you are making payments on time. This will result in a higher credit score over time and the ability to eventually get a regular loan or credit card.

Pros:

* Good for rebuilding or establishing credit
* Allows for online shopping (and possibly online bill paying)
* Allows for use of most ATM machines
* Reports to the major credit bureaus
* Pre-set limit keeps you from going over the limit
* Peace of mind when traveling, etc. that you have a card as opposed to carrying cash

Cons:

* Possible high monthly/annual fees
* Possible high interest rate
* Possible nickel and dime you to death with additional fees

Ways for Building a Solid Credit History with a Student Credit Card

If you are a college student, acquiring a college or student credit card is the easiest way to build a good credit history. Perhaps you have seen credit card applications displayed around campus. The application process is very simple, and most people are approved. Although obtaining a credit card is perfect for proving credit worthiness, it is essential to responsibly manage credit.

Advantages of a Student or College Credit Cards

Aside from the obvious advantage of establishing credit history, student credit cards are ideal for basic purchases. For the most part, college students are strapped for cash. Hence, a college credit card may be used wisely to purchase semester books and pay for other unexpected expenses that arise. Furthermore, some college students obtain a student credit card to purchase an inexpensive used vehicle.

On average, student credit cards have a low limit. Average credit limits are about $1,000. Credit card companies recognize that first time credit card users may become overly excited with seemingly "free money," thus, the limits are kept low. Low credit limits make student credit cards easier to manage. As you build credit, the credit card company will gradually increase your spending limit.

How to Use Credit Wisely

To avoid accumulating excessive debts, college students must resist the urge to buy whatever they want. In some instances, a college credit card company will approve students for a large credit limit. This is dangerous. Do not purchase items you cannot afford. By doing so, you will likely join millions of other people who are drowning in debt. Rule of thumb: payoff balances each month. This contributes to you remaining debt free.

How to Apply for a Student Credit Card

To get approved for a student credit card, college students must be employed. The application will request employer, income, school, and personal information. Moreover, the creditor will review your credit report. Prior to completing the application, you should read the terms of agreement. What is credit card's introductory rate? What will the rate be after the six month introductory period? Furthermore, what are the late fees, and is there an annual fee? Compare Student Cards and Apply.

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