You know it’s September and back to school time when the student credit card offers start rolling into your mailbox.
It’s a good idea to have a student credit card for anyone that is away at college or anywhere anyway from home. I got my very first credit card this way. When I left for college I managed to convince my mom that I needed a credit card, so she added me to one of hers.
(Little did I know that this was a kick-a$$ Credit Millionaire strategy that would give me excellent credit at the ripe old age of 18…thanks mom!)Â
Student credit cards, despite the negative hype, are really a good idea so that the student can get what they need and not have to worry about money all the time. Both parents and students can experience some piece of mind.
A student credit card is usually available to most students through regular credit card companies. You can find a good deal on the credit card that you want when you do a little bit of research on the subject. When you are willing to shop around for the best card, you will have fewer worries and you will not have to deal with outrageous interest rates as well.
Capital One has a credit hard specifically for people with limited credit history. Capital One is also one of the worst credit cards when you develop bad credit…so if you go this route make sure you are Never, ever, ever, ever over your limit or late.
Citibank has a card called the Platium Select Card for College Students. However, it’s the Discover Student Clear Card that seems the best. At the time of this writing they are advertizing a lower interest rate than the others, plus you get cash back :) And that’s smart shopping.
Either the parent or the student can apply for a student credit card. If the student does not have a job and completely depends on their parents for financial support, it’s okay to list income from allowances and student loan distributions.
Learner beware: Usually these interest rates are a bit higher on student credit cards than on a regular credit card so it is a good idea to watch what you are spending and try to pay off the balance as soon as you can.
For more information on that great strategy I used to build credit at 18, see page 158 of the Credit Millionaire book.
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