Personal Finance : Finding The Best Student Credit Cards

Being well versed in the art of personal finance and managing personal expenses is one of the first things every college going student must know. The moment your child sets foot inside the college campus, he or she will be flooded with a lot of credit card offers with the most glamorous, attractive offers and discounts which sounds irresistible.

College students are offered cards which entitle them a free entry to disco or pubs. They get the latest music or gaming CD or get cool T-shirts or trendy bags for filling a credit card application. Children mistakenly view the credit cards as the first step towards independent living. If they use the credit card improperly and without making prompt payments, they get embroiled in a debt-trap which affects their credit rating. Soon they find it tough to get a mortgage or get a job because of their poor credit rating. Of course the credit card company is not to be blamed. It is their business. Using a credit card is no sin. It is just that the student should know how to take care of and track his expenses. Being self aware of the usage of the credit card and a few important lessons in personal finance will set the child on track to manage his card wisely.

As a responsible parent, who taught him how to ride his first car by sitting besides him, you should make it a point to use the same principle when you get a credit card for him. Apply for a students ‘credit card which has both of your names on it. The credit limit should be low. You should be able to keep a check and monitor your child’s expenses through the credit card statements. You can even make an excel sheet with the due date, the finance charge, the minimum due, the amount paid, the late fees, and the annual fee of the card listed in different columns so that your child really knows how you track the credit card details.

A convenient and suitable student’s credit card should have a lower credit limit. The best student credit card will have an insurance program to cover for loss or theft of the card. It should give rewards and points to the students which they can redeem like cash back from drug stores or gas stores. These will show the students how the rewards program work for various credit cards.

Student credit cards are given to the first timers with no previous credit history in most cases. So, they have a chance of having a high APR than some conventional credit cards. The best student credit card will have a 0% APR for an introductory period for six months or a year, after which the APR can be quite. Also choose the student’s credit with no annual fee. Some research online will help you find the best student’s credit card for your child.