Student Credit Cards
Student credit cards are intended to help high school and university students obtain some credit and a good credit history. In some cases student credit cards are secured by a deposit and in this case they fall into the group of secured credit cards but more often that not student credit cards are of the unsecured type. Also, even if your student credit card is secured in the beginning, many issuers will agree to convert it to unsecured a year or so later.
Student credit cards, as the name implies, are issued to students in high schools, colleges and universities. Generally no employment is required in order to obtain a student credit card but this varies from issuer to issuer. As a whole, the requirements an applicant needs to meet in order to be issued a student credit card are not as strict as the requirements for standard credit cards. In some cases, especially with credit cards for high school students, the card can be issued as an extension to a parent's credit card.
Student credit cards can be issued even if the applicant has no job. Because of this, there have been cases when people, who can't obtain a credit card in other ways, enroll into community colleges just to get a credit card. While this is perfectly legal, it could have a negative impact on your future credit history, so you'd better don't do it.
Generally, student credit cards are not difficult to obtain. Also, it is possible to get a student credit card that offers great terms – low interest rates, low or waived fees, credit limits over $1,000 and so on. So, as with all types of credit cards, when you plan to apply for a student credit card, take the time to research the available options and make an informed choice rather than rush to grab the first offer that arrives in your mailbox.
If you can't manage to find only one great offer, you might be tempted to apply for several student credit cards at once. This is not particularly wise because having a bunch of them might prove too much of a burden, as far as charges and rates are concerned. Actually, having more than three student credit cards is a way too much.
Although this applies to all kinds of credit cards, but for student credit cards it is even more important, read carefully the fine print in your Card Holder agreement. You might not be fond of reading boring legal stuff but it pays to do it because if there are some special penalty clauses or any kinds of traps, you need to be aware of this in advance.
Since you most likely do not have any credit card experience yet, it is really vital that you pay attention to all important clauses in your agreement, especially to those that regulate penalties for late payments or for going over the limit. You might be new to the world of credit cards but there is a really important lesson to learn – use your credit card wisely. Your student credit card is your start in life and you wouldn't like to start your credit history with failure, would you?