Student Credit Cards

You've been thinking about getting a credit card ever since you ran out of money a few weeks ago and couldn't afford to put gas in your car. No gas no work. Luckily your parents were able to wire you some money and you didn't lose your job and were able to get to your college classes. You know that alls well that ends well but you absolutely hate asking your parents for money. The few times you've asked it has always come with a few comments about how maybe you aren't ready to live on your own and how they would be happy to have you move home.

If you only had a credit card you could avoid the hassle. And why shouldn't you? Some days it seems like you're the only student on campus that doesn't have one.

While you are daydreaming about how much easier your life would be if you only had that little piece of plastic that would open the world of financial freedom you can't help but think about some of your friends that have credit cards. And the mountains of unpaid credit card bills they have sitting on their kitchen counters. You think about the calls they are always avoiding, the headaches and stress they feel over the mountains of debt. When your thoughts start heading down that road asking your parents for a couple of bucks to cover miscellaneous expenses doesn't seem so bad.

Still having a credit card isn't a totally bad idea. Student credit cards are a good way to establish credit and help soften the times when you're the paycheck you've collected from your university job doesn't quite stretch to cover a few miscellaneous expenses.

If the times your paycheck doesn't stretch are few and far between a student credit card is probably not a bad idea, especially if you don't lust over fancy electronics and exotic spring breaks.

On the other hand if you are hitting your parents up for a no payback loan every week, you dream of owning the latest X-box and think that Hong Kong looks like the place to be, you might want to consider a second job rather then unlimited purchasing power.

One of the biggest advantages to a student credit card is that as long as it's used properly it's an excellent way to establish credit that can be later used to rent an apartment and purchase a car. The biggest disadvantage is the overwhelming number of students who graduate college with an insurmountable mountain of credit card debt. Many of them will probably never get out from under it.

If you feel that you absolutely must have a student credit card there are a few simple things to look for when selecting the best credit card?

Look for the lowest annual percentage rate.

If you're responsible it's not a bad idea to have a few cards. One for emergencies only. One for major purchases. One for convenience.
Look for a card with a lengthy grace period. The longer the grace period the longer you have to scrape together the available funding to pay the bill.
Don't forget to consider a secure credit card. This is a card that you pay a pre-determined amount of money that the credit card company holds in queue. This amount is your credit limit. Whenever you fail to make the monthly bill the credit card company simply takes the money from the available stash. This is a good way of establishing credit with minimal risk. Most cards will allow you to add to the amount of the deposit as you go.
Once you have the card it is not enough that you spend responsibly and pay your bill. Make sure that you handle your card with care. Don't leave your card lying around somewhere that it can be used by a person with a mind for a little bit of identity theft.