The innovative spending idea for the Gen-next is a Student
Credit Card. Popularly knows as cards or the Plastic money these
open a gateway to financial freedom to the contemporary youth.
On one hand student credit card also provide an opportunity to
an adolescent to start building up his credit profile but on the
other hand these are known to generate a vicious circle of debts
and money short falls.
Various companies and banks offer lucrative schemes to lure
students to opt for credit cards. These offers vary as low
interest rates; cash back rewards, no annual fees, etc.
Various credit card companies have specifically launched student
credit card towards the adolescent and youth. This card offers a
bonus towards financial freedom and an opportunity to live
independently away from the parents. Many parents also open bank
accounts and also provide supplementary card to their kids to
offer independence of expenditure. Most of the student credit
cards require parents consent to offer a credit limit.
Student credit cards provide low credit limit as the students
usually do not have credit ratings plus credit companies often
suffer non-payment and bad debts problems with students. Due to
high non-paying student population usually the interest rates
are high on student credit cards. Student credit cards also
offer various schemes to lure students towards more expenditure.
Some cards offer cash-back offers at purchases from
supermarkets, drugstores and gas stations. These cards also do
not attract any annual fees on these cards. Free online account
access and bill pay facility are other attractions attached to
student credit cards.
A Student Credit Card offers the opportunity to enjoy the
benefits of financial freedom by having credit. It also teaches
the value and responsibilities that go along with those freedoms
and credit limits. This venture is although a risky option from
the service providers like banks and financial institutions, but
it also is the first step towards building good credit rating.
It is also first step towards learning to use your credit
ratings and credit limits wisely.
In some cases many students are unable to take advantage of the
benefits offered by the banks or financial institutions because
they carry a balance on their credit card from month to month,
paying finance charges that can go up to a whopping 23 percent.
Many find it hard to resist using the old 'plastic' for impulse
purchases or buying things they really can't afford.
Student credit cards also offer various benefits to the
students. Most of the student credit cards offer 0% introductory
APR for first 6 months. These student credit cards also offer 0%
liability to any unauthorized charges to the card that means if
someone else uses the card there is no liability to the card
holder. Usually student credit cards do not attract any annual
fees moreover they also provide free online account management
also.
Most of the student credit cards also carry reward point
programs. The points earned for every purchase made can be
redeemed for the gifts specified by the card company. Platinum
student credit cards offered by some banks do not require any
minimum income or co-signor for the card. Some student credit
cards are exclusively designed for students enrolled at an
accredited four-year college or university. These cards are
universal entertainment student credit cards which not only have
0% APR for first 6 months for any purchases or cash advances but
they also have no annual fees as well. These student credit
cards carry reward point programs. The points can be redeemed
for free CDs, DVDs, Movie Tickets, and much more. These student
credit cards also offer free movie ticket with the card.
Other attractions with the student cards are for earning extra
reward point for every dollar spent at restaurants, bookstores,
record stores, movie theaters and video rentals stores. These
points can be redeemed for gift cards, MTV events, and airline
tickets, etc.
About the author:
Peter Sissons, Retired Bank Manager and
Secured Credit
Cards advisor - focusing on
Student Credit
Cards and
Best Credit
Card
