Student Credit Card: Tips and Precautions

A student credit card enables one to pay for expenses online like a degree, online courses, language-learning materials or music. Procuring such a card is facilitated by many companies. Using this a student can create a good credit history which can be utilized for larger purchases like a car or a home. However, students should beware of the fact that the interest rates are high and they may fail to pay the penalties on time. Also, the students may accrue a debt they cannot repay. A good option is to have a debit card that has a credit limit. The expenses are subtracted from the existing funds and when the credit limit is reached, purchases have to cease. The student must consider the pros and cons of the credit cards before finalizing on any one.

Role of parents in student credit card

There is a need of parents assistance for co-signing before getting a student credit card. The parents must be aware that their children are using it properly. They can guide them regarding comparing and selecting the right card. Some credit cards have low limits and this makes the students spend the money carefully. Some of these have no annual fee, 0% APR or a rewards program. Sometimes the reward may offer something for free, like a gasoline card for free gas.

Tips regarding some prominent student credit cards

There are several student credit cards available and these are associated with different tips and precautions. The facts mentioned below are garnered in November 2007. The Citi Dividend Platinum Select Card for College Students provides a 5% cash return on eligible purchases at gas stations, drugstores, supermarkets and convenience stores. This includes cable for 6 months and 2% further. Additionally, there is 1% cash return on all purchases whenever the MasterCard credit card is used. On all individual balance transfer transactions of minimum $1500, $5 cash is received back. On all cash advances taken at the standard cash advance rate , 1% cash is received back. This card has the following advantages:

• No minimum income required
• No co-signer needed
• Credit education tools
• The lost wallet service
• Citi Photocard option
• Citi Identity Theft solutions

The Citi mtvU Platinum Select Visa Card is issued by Citibank specifically for college students. This has a unique reward program that awards points to students for two reasons. For wise use of credit and attaining high grades. For general purchases, one point and five points for expenses at bookstores, record stores, restaurants, video rentals and movie theaters. If payments are done in time and do not exceed the credit limit, 25 points are added. From 250 to 2000 points are given and these depend on the student's GPA. The maximum number of points that can be earned are 75,000 and these remain for maximum five years. An annual fee is not charged. However, the interest rate is more than average.

The Capital One Platinum Card for students has a purchase APR of 0% upto February 2008 and this will vary after this month. The credit limit is $300-$3000. There is 24-hour roadside assistance along with towing, lock-out service and flat repair. Also there exists collision, damage and loss insurance on rental cars. There is emergency card replacement or cash advance in case the card is lost or stolen. Online account service is available along with 24/7 customer support.

Paying for University

There are several universities that facilitate payment by using the student credit card. The Student Fee payment form has to be filled. This includes the student's name, name on credit card, phone number, area code, student number, amount to be paid, whether Visa or Mastercard, credit card number, expiry date and the signature. Then, this completed form has to be faxed. Another method is to phone the credit card payment.