College life for students these days is significantly different than it was only a few short years ago. It is a time for friendships, new relationships, learning, adventure, finding one's boundaries, and of course a time for stress. As well as the stress that comes from that mid term exam or the term paper that you have been putting off getting started on, much of the stress can be of a financial nature. There is no doubt about it -- college is expensive today, from tuition to textbooks to lab fees to dorm or apartment costs, and the list seems to go on and on. But to alleviate much of that stress, many students sign up for a student credit card during their time in college or at the university.
Typically, a student credit card is made available to anyone who is part of the academic community, whether full time student or part time student, undergraduate or post graduate. The only real requirement is that the student applying be at least 18 years old, or they will require consent and/or co-signing from their parents or guardian.
But before applying for a student credit card, which is almost alarmingly easy to qualify for, the student should be aware of what comes with the credit card. What comes with it is the tremendous temptation to use the student credit card for things which may not necessarily be academically related, such as a big party at the frat house, a five star dinner with that Swedish foreign exchange student, and other such non-essentials. The student needs to understand the long term ramifications of racking up a huge amount of student credit card debt, which can have a severely negative impact on their credit rating, and therefore also affect their future ability to get additional credit, get approved for a car loan, or even be considered for that ideal post-graudation job. Being aware of these ramifications up front can save a lot of headaches down the road, since learning about fiscal responsibility from reading about it versus experiencing these negatives first hand are entirely separate things.
How can I Get A Student Credit Card?
First of all, make sure you understand what you plan to use it for. If it is just for "emergencies", be sure to hold yourself accountable for what defines "emergency". Also and just as important, make sure that your monthly payments do not exceed the amount of money you have coming in. Establish your budget, lay out your financial obligations, and make a realistic determination of what you can afford, not forgetting that you don't want to take yourself down to zero at the end of the month because your social life is going to suffer.
For establishing your credit history and keeping it as squeaky clean as possible, it is probably best that your first student credit card be a secured card. This type of credit card is one where you leave a deposit with the bank or credit union, and the amount of your deposit is your credit limit. After establishing your credit this way with consecutive and timely payments, you are in a much better position to advance to an unsecured student credit card.
Check with the financial aid personnel at your college or university, who should be able to advise you as to which local banks or credit unions offer the best deals on a student credit card. Since offers change regularly, the personnel in this office are probably best versed on what is your best value today.
Benefits From Obtaining A Student Credit Card
Student credit cards can assist students to learn how to become financially responsible. By making good financial decisions about when to use the card and what to use it for, students are able to establish their credit scores and with timely payments, maintain a good credit rating. A student credit card is also a great way of teaching students about interest and debt, and the life-long skill required in today's world of being conscious to pay all bills on time, as well as the unpleasant ramifications if bills do not get paid on time.
A Word About Disadvantages Of Student Credit Cards
If not used wisely and responsibly, a student credit card can be a one way ticket to a tremendous amount of stress, which can impact your ability to study and concentrate. And once established, that student credit card debt will follow you right out of college into the real world, and will not go away just because you graduated from college.
The student needs to learn financial responsibility and needs to understand that a student credit card is not the equivalent of "free money". It is money that is loaned to you, with interest, frequently high interest, and must be paid back.