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Student_Credit_Card_-_Manage_and_Build_Credit

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					Student Credit Card - Manage and Build Credit

Word Count:
496

Summary:
The advantages and disadvantages of students using credit cards and also
analysis of debt accumulation by students


Keywords:
Student Credit Cards,Student Credit Card,Credit Cards for College
Students


Article Body:
The use of credit cards by students is at an all time high, and each year
more and more students and young people are signing up to use credit
cards. The alarming increase in these numbers has generated a lot of
concern from various sources about the easy availability of credit cards
and the potential pitfalls of irresponsible credit card use. But there is
significant benefit that student credit cards can offer, including the
opportunity for young cardholders to learn how to manage and build
credit.

An alarming percentage of students and young people are already more than
$10,000 in credit card debt and to complicate things even further, many
of these students have yet to start earning a stable income. Financial
responsibility is something that has to be taught at home, but most
parents do not have the time nor the patience required to adequately
guide their children about the vagaries and responsibilities of using and
managing credit wisely.

The cornerstone of proper personal financial planning is living well
within your means. But peer pressure plays a major role in a student's
life and, for young people in particular, it is extremely difficult to
ignore the latest trends. Easy access to student credit cards is part of
the problem for students trying to establish and build credit, and it has
become very difficult to avoid credit card offers that allow students to
complete a "brief" application form and obtain a credit card in such a
short amount of time.

But wise use of these credit cards can help those students who might
otherwise struggle to pay their college fees and meet their day to day
expenses as well as those who are just looking to get an early start on
building their credit. Credit card issuers have recognized the market
opportunity and have been offering increasingly competitive student
credit card offers everyday.

Another distinct advantage of having a student credit card is that it
helps in starting the process of building a good credit history. Starting
to build credit early will go a long way for young people trying to
establish a financial track record prior to that first car or first home
purchase.

A highly recommended alternative of an unsecured student credit card is a
debit or prepaid card with a credit limit. Money for purchases made on
this card is just deducted from existing funds deposited in the student's
account and when the spending reaches the limit, the student simply is
not allowed to make any more purchases.

Before you decide to get a student credit card, you should pay special
attention to any fees, exclusions and restrictions that might limit the
use of the card. Also, lookout for the rewards they are offering and
then compare the overall costs that you have to bear. Also, don't forget
to check for balance transfer transaction fees, blackout dates on rewards
offers or for any restrictions or limitations which will fall under the
terms and conditions.

				
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