Top three questions and answers about Student Credit Cards
A student credit card is a credit card generally issued to 18 to 21 year olds that are attending college. New laws and regulations will require the student to prove they have the means to pay for the charges placed on the card, for example having a steady job. Or they have to get a co-signer for the card that is over 21 years old, can prove they have the means to pay the charges on the card, and will take responsibility for those charges if the student doesn’t pay.
Below you’ll find three questions that are frequently asked about student credit cards.
Should I get a Student Credit Card?
This is a question only you and your parents can answer as there are many considerations. A student credit card can be a very good thing. It can help you establish a positive foundation for the future as landlords, insurance companies, and even employers will often use your credit history to help them make a decision on hiring you, allowing you to live in their property, or to set your insurance rates.
You will need to asses when and how you need to use a student credit card and determine how to ensure you meet the monthly payments.
There are so many options out there that you do need to take the time and look at several card offers before making your decision. Make sure you compare things like annual fees, interest rates, penalties and any other fees and terms for the card. Often card issuers will have introductory offers.
It is important to compare the introductory offer and term, as well as the fees, interest and other terms for the cards once the introductory term expires. Make sure you understand how long the introductory term lasts. New regulations require that it be at least six months, but it could be longer.
Where can I get a Student Credit Card?
If you already have a checking or savings account, check with your bank and see if they offer student credit cards. You can also check specific credit card websites, or do an online search comparing student credit cards. Many credit unions offer credit cards that will have a lower interest rate without all the rewards options or annual fees.
The online sites that compare student credit cards will often provide you the information on the top four to eight most popular student credit cards. They should break down the fees, interest rates and other terms and benefits for each specific card.
They will usually allow you to apply for the student credit card online. Some of the sites will take you through a selection process to help you determine which option makes sense for you based on what you plan to use the card for and your personal circumstances. Many of the sites will offer information on how to use the student credit card responsibly, how to budget for a credit card and how to protect your credit rating.
A few of these online sites are studentcreditcards.com, studentplatinum.com, credit.com, and findcollegecards.com. You can also do an internet search for compare student credit cards and find similar sites.
What are these new credit laws I keep hearing about?
Companies issuing credit cards to students, and everyone else, have new rules and regulations to govern their lending habits. These new rules start taking affect beginning the third week of February 2010 and all will be in place by August 2010. The new credit regulations are intended to protect consumers and keep them informed about the credit cards they use.
Student Credit Cards are specifically affected by the new regulations. Now companies are not allowed to offer on campus students free gifts just for applying for the credit card.
The other main change to the rules for students it the one we mentioned above where an under 21 year old will have to show they can repay the debt on their own, or they will have to get an adult to co-sign. The co-signor has to agree to take responsibility for the debt and prove that they can pay for it.
loading...
