What Every College Student Should Know Before Signing Up For A Student Card

One of the types of credit cards that have the most number of cardholders has to be student credit cards. In 2004, alone, about 76 percent of undergraduates started the school year with their very own credit cards. This represents billions in dollars when it comes to expenditure. Most credit card companies nowadays are willing to take the risk even among low-income or zero income students just so they can have extra revenue. These credit card companies benefit from the student market with their student credit cards.

Student-specific cards or student cards are different from the regular credit cards as they have different terms, conditions and benefits. These are the reasons why every college student should think twice before getting his own card. Although college years could be the most perfect time to get your very first credit card, it still pays to scout around and do some research before actually signing anything.

Now what's in it for a college student? Student cards have higher interest rates (this is just logical since the risk is much higher when it comes to the repayment of the debt). When a student proves that he pays well and he is able to establish a good credit history, he will soon be considered by the company to sign up as a regular cardholder. This is when the interest rate could go down.

Another important thing to remember when deciding which student card to take is to know what rewards you can get if you use the card often. Redemption of points from participating stores in the form of discounts or freebies could be a great reward in exchange for your numerous purchases.

The greatest lesson for first time credit card users is to sign up for the card with the lowest interest rate there is and to spend within their capacity. Remember that you are dealing with debt and not an allowance from your parents! So be responsible and spend wisely.

Stephen Lee is the author for aboutcreditcards.info that is geared toward helping people choose and compare credit card offerings You can view more articles about credit cards by visiting here