So what really makes a college credit card different from an ordinary regular credit card? Did you know that in these present days, concerned parents with kids in college now allow their children to have credit cards because of these cards especially for college students? It's not just because their children can help manage their financing and learning to budget but the important thing is so that they would have good credit scores.
In these modern days, banks and money institutions claim that a person having no credit score or bad credit history are the people that have tendencies to become outcasts in society. Someone can easily tell if credit is for you as because a person having a bad credit history or no history at all will be categorized as a person with no abilities to handle credit properly.
A typical college card is no different from an ordinary card. The compete comparison between them reveals that there are no much differences. But these cards have benefits also in where students can get rewards or other things like normal student needs. The usual college card has a much lower interest rate as because students are the one who pay for the bills. Another good thing is students may negotiate for their interest rates and request for lower ones as long as they have and maintain good grades.
One more thing you should know is, these cards are actually secured ones. The main different is that, parents have control of it and parents are the ones who set the credit limits. Another nice feature of these cards is they are allowed to become linked into the parent's main credit account so that parents may have the abilities to see how their kids spend. Since these cards are made for college students only the companies that approve applications in these cases consider people with no credit history as because this might be their first credit cards.
The usual student cards have no annual fees and they only have a maximum of $ 500 as the credit limit. This is said to be effective and useful in controlling a teens spending addiction or spending problem.
In the bottom line, even though these credit cards have small interest rates or small credit limits, they are still credit cards and one having a credit card must handle credit wisely. You wouldn't like to have a bad credit score while you're only 20 right?