Student Credit Card: Tips and
Precautions
 A student
credit card enables one to pay for expenses online like a
degree, online courses, language-learning materials or
music. Procuring such a card is facilitated by many
companies. Using this a student can create a good credit
history which can be utilized for larger purchases like a
car or a home.
However,
students should beware of the fact that the interest rates
are high and they may fail to pay the penalties on time.
Also, the students may accrue a debt they cannot repay. A
good option is to have a debit card that has a credit
limit. The expenses are subtracted from the existing funds
and when the credit limit is reached, purchases have to
cease. The student must consider the pros and cons of the
credit cards before finalizing on any one.
Role of parents in student credit
card
There is a need
of parents assistance for co-signing before getting a
student credit card. The parents must be aware that their
children are using it properly. They can guide them
regarding comparing and selecting the right card. Some
credit cards have low limits and this makes the students
spend the money carefully.
Some of these
have no annual fee, 0% APR or a rewards program. Sometimes
the reward may offer something for free, like a gasoline
card for free gas.
Tips regarding some prominent student
credit cards
There are
several student credit cards available and these are
associated with different tips and precautions. The facts
mentioned below are garnered in November 2007.
The Citi
Dividend Platinum Select Card for College Students
provides a 5% cash return on eligible purchases at gas
stations, drugstores, supermarkets and convenience stores.
This includes cable for 6 months and 2% further.
Additionally,
there is 1% cash return on all purchases whenever the
MasterCard credit card is used.
On all
individual balance transfer transactions of minimum $1500,
$5 cash is received back. On all cash advances taken at
the standard cash advance rate , 1% cash is received back.
This card has the following
advantages:
- No minimum income required
- No co-signer needed
- Credit education tools
- The lost wallet service
- Citi Photocard option
- Citi Identity Theft solutions
The Citi mtvU
Platinum Select Visa Card is issued by Citibank
specifically for college students. This has a unique
reward program that awards points to students for two
reasons. For wise use of credit and attaining high
grades.
For
general purchases, one point and five points for expenses
at bookstores, record stores, restaurants, video rentals
and movie theaters. If payments are done in time and do
not exceed the credit limit, 25 points are added.
From 250 to
2000 points are given and these depend on the student's
GPA. The maximum number of points that can be earned are
75,000 and these remain for maximum five years. An annual
fee is not charged. However, the interest rate is more
than average.
The Capital One
Platinum Card for students has a purchase APR of 0% upto
February 2008 and this will vary after this month. The
credit limit is $300-$3000. There is 24-hour roadside
assistance along with towing, lock-out service and flat
repair.
Also there
exists collision, damage and loss insurance on rental
cars. There is emergency card replacement or cash advance
in case the card is lost or stolen. Online account service
is available along with 24/7 customer support.
Paying for
University
There are
several universities that facilitate payment by using the
student credit card. The Student Fee payment form has to
be filled. This includes the student's name, name on
credit card, phone number, area code, student number,
amount to be paid, whether Visa or Mastercard, credit card
number, expiry date and the signature. Then, this
completed form has to be faxed. Another method is to phone
the credit card payment.
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