A student credit card is a kind of credit card is a specific type of credit card that is aimed at those who are still studying and who may be relying on their parents for majority of their income. More often than not, student credit cards are targeted towards senior high school students and university students. Since these individuals normally do not have their own income, they need to have a written parental agreement before they are issued student credit cards.
There are many kinds of credit cards that are labeled student credit cards. Sometimes, student credit cards are merely extensions of their parent’s credit cards. In some instances, the credit cards are actually debit cards. That is, there is a fixed line of credit available as long as there are funds in the account. In other cases, student credit cards are just like any other credit card, except that they are tied to the student’s parent’s credit rating.
There are many advantages to having a student credit card. One is the obvious reason of convenience. When a child goes away to university or college, having access to immediate funds via the student credit card can figuratively save a student’s life. More so, student credit cards may have significantly lower interest rates as compared to the “normal” credit card. Having a student credit card is also a good way to start building up one’s credit record. Even though the card may be tied to the parent’s account, the student’s name is still associated with the card. This means that all transactions carried out on that card will be reflected in the student’s credit history. If handled properly, the credit card transactions will be great for the student’s ratings.