Student Credit Cards - Just the Basics

Full-time students will rarely have the time to apply for a credit card let alone build credit outside of class and, in many cases, a full to part-time job. Student credit cards are available to 18 and older students who want to establish credit in their own name at little risk. But what exactly is a student credit card?

A student credit card is a convenient means of being able to purchase books, study materials and other necessities that are vital to a college student without the worry of identity theft or mismanagement of money. It is not completely necessary to be employed in order to obtain a student credit card.

As expected, most student cards have a low line of credit as well as a low APR. Although building credit through pre-paid cards such as credit cards offered by gas companies, a student card is often times the optimal way to go. However, students must keep in mind that a credit card is still a credit card and that any credit used is technically a small unsecured loan. The best way to avoid digging a steep, personal debt hole is to avoid spending money that is simply not available. A subtle 'trick' to credit cards that goes, for the most part, unnoticed, is that transactions made on the card will not be charged with a percentage fee should the card holder simply pay off the debt before the next billing cycle.

Meaning, should one buy a sweatshirt and then charge it to a credit card, then make a simple online bill payment or even paper statement before the next billing cycle then the credit card companies will simply consider it as a temporary loan, paid in full with no, if not minimal interest. In other words, it's almost as if the sweatshirt was paid via cash, just at later time; beware though that the 'pay it later' mentality is the most common cause of credit card problems. As long as that impulsive buyer's mentality is kept in check, most students should be fine with one or two credit cards.

One or two credit cards may help credit ratings and score, but, contrary to urban myth, having more than two will generally hurt if not lower credit scores and rating. What really matters is the ration of credit available to credit used versus the amount of credit cards owned; much more complicated than a simple counting of credit cards. Students who pay their balances regularly are the people, who benefit from having multiple credit cards as the line of credit used is low, available credit high, and number of credit cards limited.

When it comes to learning about personal financial management, for students, a student credit card is certainly a prime option to consider. Always make sure to make wise purchases and to check monthly statements carefully to verify whether you have been charged aptly, since at times there are errors on billing statements concerning purchases through student credit cards. Student credit cards are meant to be a stepping stone into a greater financial world, with greater financial opportunities. As long as the balance is paid every month and credit line is not exceeded, a student credit card can be the very boost needed to get young adults financially and credit worthy.