College Credit Card allows you to learn budgeting early on
It is not a problem for a student to get a college credit card. All you have to do is show proof that you are a full time student at an accredited college or university. This may not even be necessary if you apply online for one of the guaranteed approval offers. There are many credit card companies that know that student need the flexibility of having access to cash and purchasing options and are willing to take a chance with them. These companies also hope that when you get out of college and have a job, you will continue to be a customer carrying a higher limit.
There are many benefits to having a college credit card, especially a low APR credit card. This means that the amount of interest you pay on the outstanding balance each month is far less than the regular amount charged. When comparing credit cards online, you will find that many of the credit cards actually have no interest charged for an introductory period of at least six months. After that time, the interest rate is probably very high, so you should make sure that once the introductory period is over, it is still a low APR credit card with interest rates no higher than 8%.
When you apply for a student loan, you will probably receive a college credit card from the lending institution. The credit limit varies, but they usually start off with a $250 limit. Many responsible students have been able to establish an excellent credit rating with such a card. However, there are many who do not understand the importance of having good credit and do not make the necessary monthly payments. This results in them having a poor credit rating and when they get out of college, they find that they have to resort to getting bad credit personal loans for their needs, which usually carry a high rate of interest. It is very important for student to realize that their credit rating is something that will be very valuable to them later in life.