College students are at an extremely critical time in their lives. They are joining the adult world which consists of the financial world also. The very first big step a student will likely make into the adult financial world is by acquiring a credit card. These cards could appear scary initially to people who aren’t familiar with them, which is why it is essential for students to get a card that’s particularly suited to them for their first card.
Fortunately there are credit cards offered on the market today that are suited to college students and young adults. These cards have specific characteristics that make them different to regular credit cards. The main difference is that a college student card will have a low credit limit attached to it, usually on $500 or $1000. The reason why they have a low limit is because college students have not yet had the opportunity to prove their credit worthiness and therefore lenders are unwilling to lend them significant amounts of money.
Another characteristic of a college student card is that it will likely have a slightly higher interest rate and annual fee than a regular credit card. Again, this is due to the fact that college students typically have a limited or no credit history and lenders will be looking to reduce their risk when they lend to a college student.
Because of the low limit and slightly higher interest rates and fees of these cards they can seem like a bad idea, but they can actually be quite beneficial for young adults. The main reason why these cards are a good idea for young adults is simply because they may not be able to get any other credit card with their limited credit history. These cards help college student gain a foothold in the financial world by allowing them to begin building their credit history for use with larger credit requests in the future.
Keep in mind that although you might dislike the interest rates and credit limits on these cards they are a great step towards you being allowed a greater credit limit and smaller interest levels within the future. Make sure to use your individual card sensibly once you obtain it by fully repaying your account balances on time or earlier and you’ll be able to build up an excellent credit score that will benefit you for a lot of years to come.
For much more assistance about college student credit cards make sure to look at our web site. Or you may need to find out about some of our suggestions about credit cards advantages and disadvantages to assist you to get the right card.
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