King bell
VIP Contributor
Student credit cards are a great way to start building your credit, but they also come with some important considerations. Before you decide to get one, it’s important to weigh the pros and cons of student credit cards. Here are some points to consider when deciding whether or not a student card is right for you:
Pros:
• Low Credit Requirements - Student credit cards typically have lower requirements for approval than regular consumer cards. This means that even if your credit isn’t perfect, you may still be able to qualify for one of these types of accounts.
• Lower Interest Rates - Student-specific accounts tend to have much lower interest rates than other types of consumer accounts because lenders recognize that students often don't earn as much income as non-students and therefore can't afford higher APRs on their debt payments.
• Rewards Programs - Many student-specific accounts offer rewards programs designed specifically with college students in mind, such as cash back bonuses on textbooks or discounts on dining out at certain restaurants near campus counties. These rewards can be helpful in keeping costs down while attending school full time.
Cons:
• Potential Temptation To Overspend – When you're young and just starting out financially, it can be easy to forget about budgeting and overspend without realizing how quickly the bills will add up until its too late! It's essential that when using any type of revolving debt like a student card that you make sure all purchases fit within an affordable budget so this doesn't become an issue later down the road when bills come due each month!
• Limited Credit History – When applying for future loans or mortgages after graduating from college having limited experience managing large amounts of money could lead lenders into believing you might not handle them responsibly which could result in higher interest rates being charged or denied altogether depending upon their risk assessment policies based off past experiences with similar borrowers before making decisions regarding new loan applications submitted by potential customers seeking financing through them post graduation day ultimately resulting in less favorable terms being offered then what was originally anticipated prior during initial research stages leading up until submission date had occurred initially.
Pros:
• Low Credit Requirements - Student credit cards typically have lower requirements for approval than regular consumer cards. This means that even if your credit isn’t perfect, you may still be able to qualify for one of these types of accounts.
• Lower Interest Rates - Student-specific accounts tend to have much lower interest rates than other types of consumer accounts because lenders recognize that students often don't earn as much income as non-students and therefore can't afford higher APRs on their debt payments.
• Rewards Programs - Many student-specific accounts offer rewards programs designed specifically with college students in mind, such as cash back bonuses on textbooks or discounts on dining out at certain restaurants near campus counties. These rewards can be helpful in keeping costs down while attending school full time.
Cons:
• Potential Temptation To Overspend – When you're young and just starting out financially, it can be easy to forget about budgeting and overspend without realizing how quickly the bills will add up until its too late! It's essential that when using any type of revolving debt like a student card that you make sure all purchases fit within an affordable budget so this doesn't become an issue later down the road when bills come due each month!
• Limited Credit History – When applying for future loans or mortgages after graduating from college having limited experience managing large amounts of money could lead lenders into believing you might not handle them responsibly which could result in higher interest rates being charged or denied altogether depending upon their risk assessment policies based off past experiences with similar borrowers before making decisions regarding new loan applications submitted by potential customers seeking financing through them post graduation day ultimately resulting in less favorable terms being offered then what was originally anticipated prior during initial research stages leading up until submission date had occurred initially.
