A tough question to answer when it comes to paying for college!
Many college students don't qualify for a credit card because they do not have a steady income or they lack credit history. However, most students can qualify for a college credit card. These special cards are designed for the college student and usually have more restrictions and conditions than the regular credit card.
While some such as graduate school credit cards offer a lower interest rate for students with good grades, most have a higher interest rate than other cards. The college card may also require a co-signer and a lower credit limit. These cards can also be prepaid so the student doesn't overspend and wind up with too much college debt.
Most credit cards have a number of special features at no cost including: no annual fee for the first year, 0% APR on initial 6 months and on purchases and balance transfers, and online account management
There are some advantages to having a credit card such as a college visa card. First of all, when used properly, it can help you to establish good credit history at an early age. Having a good credit history will help to establish your financial future. Also, a college bank card has become quite a necessary tool for a lot of students. Having one can make things like paying tuition and buying books quicker and easier than using a student loan.
College credit cards can be a wonderful asset, or a horrible curse for students. If the student understands how the card works and uses it correctly, it can be a good asset. But, if it is used incorrectly, it can have devastating consequences like college credit card debt and a ruined credit report.
Student Credit Cards or College Loan Card?
Whichever way you go, the debt must be paid back. But, there are some differences. Credit card offers usually have a catch, most likely hidden in the fine print. Some have high interest rates, up to 22%! Also, the finance charges can be more than the payment if you get too far in debt. For many students in colleges credit cards are the way to handle college financing, although, if the student is irresponsible with it there can be serious negative effects.
Student loans, on the other hand, have a fixed interest rate. And depending on the type of loan, a students' credit rating, and repayment terms most do not have finance charges or hidden extra charges. But a college loan card can be a good asset for those who choose this route.
Students often get themselves into credit card debt by using too many credit cards and only making the minimum monthly payment. Whether you are using college credit cards or a student loan, determine what your expenses will be and plan accordingly.
Many options are widely available to obtaining a good college credit card, so make wise choices!
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