Student credit cards are the best way for a young person to establish credit in his or her name. You can apply for student credit cards as soon as you are 18 years old as long as you are a full time student. In some cases, students can have their parents co-sign for their student credit cards so that they can establish credit in their own name with a parent co-signer.
Most student credit cards are for very low balances or are pre-paid cards. Pre-paid student credit cards are the best option for a student to establish credit. They have a balance that has already been put forth and are basically secured credit cards. They are easy for any student to get and can help them establish credit in their own name.
Another way that students can establish credit is by using gas cards. Gas cards are credit cards that are used just for gas stations. They are generally easy to get and a good way to establish credit. Once the gas cards have been paid off regularly and are not overdue, the student will have found that he or she has credit in their name. It is easy as long as they pay off the balance each month.
Teach students how the credit card game is played and how they can win. The one way that anyone can win the credit card game is to pay for only what you can afford using credit cards. Credit cards are a convenient way to make purchases and can also offer you buyer protection. If you purchase something online, for example, you are protected if you use credit cards. If you do not use credit cards and make a purchase online, may be out the money if the item is defective or you are not satisfied with the purchase. Many credit cards offer you a guarantee if you use the card. If the item is defective, you can then return it and be assured of getting a refund. Even if the store is not agreeable to a refund, the credit card company will dispute the purchase.
Students should be taught how to use credit cards and play the credit card game but not be encouraged to spend more money than they can afford to use each month. When the student credit cards are due, they should be paid off immediately. This is the same with any type of credit card. There should be no delay so that you can avoid late penalties and interest fees – both of which can be substantial.
Many people are afraid to use credit cards because they feel that they will get into a credit card trap. This is not true. Credit cards are convenient and can offer you buyer protection. You just have to be sure to be prepared to pay off the balance of the credit cards when they come due and not to exceed your borrowing limit. Students who get student credit cards should learn how to play the credit card game and build their credit at the same time. By doing this, they can establish excellent credit in their name, never exceed their spending limit and win the credit card game.