In this post I share my tips for handling credit cards as a student and list some cards so you can apply for a student credit card.
With college starting up soon for most students, I thought it’d be a good idea if we discussed the idea of credit cards for college students. Below I provide some smart money tips for students and their cards, followed by a list of some of the best student credit cards available today.
Students and Credit Cards
I can’t believe it’s fall already. Time for students to head back to campus, or move off to college for the first time. Parents often find it convenient to begin the process of educating their kids on the proper use of credit cards during this time. It makes sense because the parent can’t be there for every purchase like they were in the high school days. And a card, along with proper use, will help the student begin to build a positive credit history.
I loved my time in college, but can’t say I was that great at managing the credit card I had when I was there. I got my card without my parents knowledge and used it foolishly throughout my time in college. Studies are showing that college students are still doing this today.
If you’re a parent, don’t let this happen to your student. Set them up with their own card, on your terms, and with your guidance. And if you’re a new student, pay attention to the tips I provide below for using new credit cards.
If you’re absolutely against credit card use, then at least educate your kids. They will be bombarded with credit card offers on campus this fall as the credit card companies make one last push before the Credit Card Act of 2009 kicks in. You don’t want to leave them alone without some of this knowledge.
How College Students Should Use Credit Cards
I’ve put together a quick list of tips for college students and parents when they get their new card:
- Emergency Use Only – Parents, you and your college student can decide that the card should be used in case of emergency only. This is a good approach. Especially if the student doesn’t have a job. You don’t have to worry about payments every month, or if your student overspent their credit limit. Have your kid keep it somewhere safe in their dorm room. Put it away and forget about it until that emergency situation occurs.
- Set a Low Credit Limit – When you learned to ride a bike, you probably started with training wheels. The same concept should apply to student credit cards. Parents, don’t allow your college student to “fall” by ringing up a huge credit balance. If the limit is low, and they go on a spending tear, they won’t do a ton of damage.
- Schedule a Monthly Review - Both parents and the college student should schedule a monthly phone call where the finances are discussed. If you’re using the card for more than emergencies, you should use this time to review the bill and talk about the balance, how you’ll pay it off, interest charges that will occur if you don’t pay,
- Pay it Off Monthly – The balance on the card should be paid off every month. This is the most important thing any college student should know when using a credit card. Unless you have an introductory 0% rate, carrying a balance on a card means you are paying high interest on the debt. Therefore, you are paying debt interest payments for something you didn’t have the money for in the first place. This is the wrong way to use credit. If you have trouble paying off your credit card debt, consider a flat rate service like DebtGoal.
- Get the Right Card - Lastly, the card that the student gets should reflect the type of use the card will receive. A card for emergencies only needs to have a small credit limit, and it need not have an annual fee (for extra services). A card that will be used for a little spending should provide the student some extra benefit from a good reward program.
Best Student Credit Cards
If you decide a student credit card is the right thing for you, check out these options below. All of them come with no annual fees, a PT Money requirement. To apply for a student credit card all you need to do is click one of the offers below.
Student Debit Card Options
If credit isn’t your thing, play it ultra safe with one of these prepaid card options:
I’d love to hear your experience with these student credit cards if you have one. Let us know in the comments below.
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I did not want my son to have a credit card when he went away to college in 1996, and that was right when the credit card companies started bombarding the college campuses with their great deals!! So I told him that the minute he thought he could afford a credit card then he better be able to afford college too because I was going to stop paying. And I was a woman (mom) of my word his entire life (consistent) so he knew I meant business.
So, needless to say, he survived college on a pay-as-you-go basis and graduated with a minimal amount of student loans and no credit card debt. He also has never had a new car, always trading up or selling the used car he had starting in college, and he and his wife now have a home, two cars, a child and no debt other than the mortgage.
It pays to be consistent!
That’s awesome, Merna. Thanks for sharing that story. You should be proud.
He went on to get his Masters and now he’s a professor at the same college where he received his BA and advises his students about the wisdom of avoiding credit cards. I’m very proud of him!!
A different opinion here: credit cards are not that evil. It’s important to have some sort of credit history for when you graduate from college and want to move into your own home.
You can’t just assume that a college student will be out of control if they get a credit card.
I have discussed this topic many times on my blog. I won’t throw any links up to my site because I don’t want to be a spammer.
You’re right; credit cards are not evil. It’s just that way too often the temptation to “buy now, pay later” gets out of control and gets us in trouble. My son had plenty of time after college to get credit, which he did, but he wasn’t saddled by old debt that most likely would have been caused by too many nights on the town–pizza ordered in–fast food instead of cafeteria food–his favorite past time (music)–etc., etc. He learned, instead, that if I can’t pay for it now, I don’t need it. And that method worked well. I can’t say he’ll ever regret the decision to stay clear of credit cards as a college student.
I have two kids in college now. Luckily, neither of them have asked for a credit card. My answer would be no, but they may be able to get one without my knowledge. They do both have debit cards against their savings accounts, and that is the way I want to leave it. If they blow all their summer earnings the damage is limited, and hopefully they learn a lesson.
I don’t think credit cards should be avoided but just handled responsibly. They help build good credit and can be the reason you get approved for a home loan or business loan.
Credit card experts says that once the average cardholder becomes eight hundred dollars or more in debt to his credit card company.So save yourself from the bondage.Money and you by habit changer provides tools to exercise financial self control.
Ya i totally agree that there is need of credit card for students also but they should not use it for their each and every spending and should check their credit card statement regularly.
I ama current student at a state university. I never asked for a card, my mother was the one who told me to get one. I have never used the card for my own needs. My mother is theone that tells me when to use it, and we have worked out what it will be used for. Its great for emergencies which thankfully haqve never happened.
Congratulations, you are a member of what I believe is the minority…students who are not tempted to use credit cards for every day pleasures and other things they can’t afford and should spend on. Your mother has raised a very smart child who will do well in the real world. Best wishes in school and your entire future.