Mega Credit Cards

Student credit cards can be useful. As trite as that sounds, it’s the best way I can describe them, from very personal experiences. Allow me to tell you about a few things that happened to me in my freshman year, and shed some light on the foggy misconceptions of student credit.

I was not a privileged student as far as finances went. I was constantly searching for ways to acquire funds just to cover my tuition and book expenses. Other kids got to blow their parents money on liquor or ultra trendypreppy frat apparel (pastel colored polo shirts and chino khakis galore, don’t forget your 80 sandals), while I scratched and clawed to just get to class. At one time I attempted to sustain myself by playing poker, but that proved to be a futile idea.

It got to the point that I had been kicked out of the university multiple times in both semesters of my first year. Ironically, each time I was only coming up about 300 short of payment, though that was enough for me to have to scramble for some new plan to save my credit hours. Of course, once I made payment and was re-admitted into school, I’d be hit with a 200 late registration fee, and the cycle would begin all over again.

While I was suffering, there was an easy solution directly in front of my face each time I passed my bank. A student credit card typically has a spending limit of about 500 – 1,000. It’s deliberately set low so students learn to spend sparingly, and banks are protected against witless college kids spending half of their cash reserve and then failing to make payment. However, my periodic bills of 200 and 300 would fit snugly under that limit, and even leave enough on top for me to have enjoyed a few small luxuries.

I walked past all the signs for student credit cards without even looking because I was raised with the stigma that many college kids have, that of the parentally-installed thinking that credit cards are bad news if you’re young. Potentially because so many parents have found themselves on the wrong side of the credit and interest equation, thereby believing their offspring will fall into the same trap.

I wish I hadn’t thought that. I could have been spared so much trouble – and so many late fees – if I’d just applied for a card.

Some student credit cards also require a co-signer. Banks do this as a safety net for themselves and the student, in the event the student can not make payment, and you can’t blame them for wanting to cover the symbolic rear-ends of all parties involved.

Students facing my former plight may fear the high interest rates student credit cards have compared to other cards. That’s entirely understandable, and credit cards shouldn’t be taken lightly. However if you’re responsible enough to handle the payments, you can build good credit early, which will give you endless advantages later in life.

3 Ways To Get Approved For A Student Credit Card

If you’re a college student, you know how expensive books, movies and tuition can be. And if you only work during the summer break, you may be looking for a way to stretch your funds through the cold winter months. Fortunately, a student credit card can help. Find one with low interest and good terms, and you can charge during the lean times and then pay it off when you’re making money on your summer job.

To get a student credit card, follow these guidelines:

1. Find some cards for comparison.

It’s easier than you think. Credit card companies often set up tables and booths at college fairs. You may even find fliers or applications around campus. And you can always find a student credit card with an online search. Be sure that the cards you’re considering are specifically student cards. Credit cards aimed at students tend to have more lenient credit score and credit history criteria, and they also tend to have lower interest rates.

2. Pick the one with the best terms.

Not all credit cards are created equal! Since your student credit card is probably your first, educate yourself a bit about the terms and jargon you’ll encounter. Choose one with a low interest rate, since that’s the “extra” amount your credit card will tack onto your balance each month. Look for one with a longer grace period, too, which is the amount of time you have to make a payment before interest begins accruing. Other things you should look for is a card with no annual fee and a low late payment fee.

3. Apply!

Simply fill out the application–either on paper, online or on the phone–and answer the questions on the form. You’ll need to reveal all the basics, like your name, current address and phone number. You’ll also need to provide them with a “permanent” address and phone number. The application will include lines for information about your school, your school’s address, your enrollment status and your year of graduation. It’s possible they’ll ask about your bank accounts and employment.

If you’re currently employed or have significant savings in the bank, chances are your line of credit–the maximum balance you can hold on your card–will be higher. But even if you only have a summer job, you should still be able to qualify for 500 – 1,000 in credit.