Student Credit Cards

Student Credit Card is meant for students who have attained the tender age of 18 years. For qualification, a student does not need a income-base to apply for the student credit card. They can get hold of a fairly high credit limit even though they are not earning enough to payoff the outstanding debt.

But a note of caution must be given to those students who are planning to get hold of this type of credit card. A student must try to payoff the outstanding date within the specified time limit, most preferably on a monthly basis, in order to get a good credit rating. A good credit rating helps a person to apply and access further loans and credits in the future. The higher the credit rating, easier will be for the concerned person to get a loan.

But most of the time it has been observed that the students (high school or college) have a propensity to spend more than their capacity and are unable to pay for the accumulated outstanding within time. This leads to a poor credit rating from the bureaus of credit rating. This may hamper their prospect for qualifying for future credits and loans. Hence, utmost caution should be taken for avoiding such catch 22 situations. So, the best way to avoid such circumstance is to keep the outstanding balance low and to payoff the arrears within time. The ideal way to be on the safe side is through paying the debts on a monthly basis.

Hence before going for a student credit card one must verify the following things :

* Research the information mentioned in the fine print of the student credit card because it contains the details on interest rates, annual charges, over-the-limit charges and late charges.
* Pay the minimum payment or face paying hefty late charges. In addition to this, the interest rate is also liable to shoot up. All these will only add up to his owes through accumulation of debts.

One needs to be careful about the introductory interest rate offers because most of them are baffling. One might be lured to select a card with very low or zero interest rate. But he should also go through the time frame for which it is valid. Generally, companies offer low/zero interest rate for the first 6 months but after that the rate of interest goes up. If this is not taken into consideration while choosing a student credit card then the student might be in problem in the future.