For most credit cards, you have to have an excellent credit score, or else you can expect high credit card interest rates. As a result, young people with little to no credit history are at a disadvantage. If you are in this situation then a student credit card might be the right credit card for you.
Student credit cards were made available when major credit card companies were taking advantage of college students’ inexperience. Matters were further complicated by students’ already hefty student loans and tuition bills. Student credit cards allow young people with no credit history to get a credit card with lower APR rates, usually no annual fee, balance transfer allowances, and the chance to build up good credit. Many also give students rewards for spending, which can give cash back, gift cards, and other similar prizes. Most do not require a cosigner, making life easier for students to make their own financial choices.
Other student cards allow direct deposits to be made onto the card, making it similar to a prepaid Visa. These help younger spenders control the amount of stuff they are buying. Like a debit card, you can only spend as much money as there is on the card. These cards usually require no credit check. Look to see if the card requires any annual or monthly fee which could reduce the amount of money on your account. These cards act as a safer way to carry around money. Instead of cash which can be easily lost or stolen, you have a card which can be deactivated and replaced.
Student credit cards come with a lot of advantages for young spenders. When you make your credit card choice, let Seattle Banking Rates help you find the most competitive and lowest credit card rates around.