Best Student Credit Cards

Most parents know that there are a lot of reasons to encourage their child to obtain a credit card when he goes off to college. They also know that many students get into trouble with credit early on. Because of this, one of the best ways to help the student find the best credit card is to discuss credit management and to compare a number of credit cards before the student applies for one.

Selecting and Using the Best Credit Card

With so many credit card companies offering cards to college students, it is important to consider the actual cost of several different types of cards before making a selection. Take into account both the interest rate and the fees associated with each card. Look for the lowest possible rates in both areas.

Using credit wisely is a major issue. College students usually start out using a credit card as a supplement to financial aid or even as an initial source of funds to use before financial aid is available. It is important for the student to remember that whatever they purchase with a credit card is a loan and that credit card loans are the most expensive ones around.

Since credit card loans are so expensive, it makes sense for the student to apply for a credit card with the lowest possible, workable limit. There are cards that offer limits as low as $300. These can be used for emergencies, and if repaid on time, credit limits will increase rapidly. Most parents and students agree on a limit of between one and two thousand dollars. This range allows the student some leeway, especially when it is time to buy books and other course materials. Whenever possible, it is a best practice to repay the full amount purchased each month.