Student Credit Card Application
If you have been thinking that you can’t get a credit card in your name before you complete your education
and get into job, you are wrong...
There is a breed of credit cards which is available especially for students. These are called
‘Student Credit Cards’.
Student credit card application - student credit
cards are the same as other credit cards except for the fact that they have additional restrictions and higher
Most of the student credit card applications will need the parent to co-sign it as a guarantee. Moreover, the
credit limit on student cards is really low ($500-1000 per month).
This is based on the typical spending needs of a student and also to cover the credit card
company’s risk in issuing a credit card to someone who has never used it before.
Also, since most of the students applying for a credit card have no history (or credit rating), this being their
first credit card, the APR on student credit cards is generally higher than that on the other credit cards.
This is again from the perspective of reducing the risk associated with issuing a credit card to someone who’s
paying capabilities and habits are not clear yet.
Student credit cards are a great opportunity for students for
developing good spending habits and a responsible behavior towards financial transactions early in their lives.
In fact, things like lower credit limit act as good controllers and besides being a risk mitigation mechanism
for the financial institution it is also favorable for students.
The student credit cards act as good training ground for students by helping them in
learning more about credit cards so that they have the knowledge and capability to select a good credit card later
on in their lives.
All credit card companies also include instructions about protection against fraud, the fee structures,
reporting credit card loss etc at the time of credit card delivery.
It’s important that the student goes through all of these instructions so as to increase his knowledge of credit
cards and also to be able to take advantage of the benefits associated with them.
As with any credit card, student credit card can also lead one into a debt trap. Considering that this is your
first credit card as a student, there is a very easy way to ensure that you don’t get into debt
trap which many are fighting today. Just refrain from submitting additional student credit card
application, come what may. One credit card is more than enough for a student.
Also, do not overspend on your credit card. Try to remain within 60% of your credit card limit.
Remember that this is a learning ground for you and good habits learnt now will go a long way in helping you in
A very important benefit from a student credit card is the fact that it can help you in building a
credit rating. The credit rating is basically the credibility earned by you when you use your credit card
over a period of time.
You get good rating if you have been paying your dues in time and if you have not been over spending.
This rating is built at independent credit bureaus and is used by banks and financial institutions for
determining your credibility before they actually sanction a loan or a mortgage or a credit card that you have
So, not only do the student credit cards allow you enjoy the benefits of the credit cards early in your life but
also help develop spending habits and credit ratings for future.