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University Credit Card

All about college credit cards

A college credit card is a credit card designed specifically for college students. A college credit card is better known as a student credit card. College credit cards allow students to experience the benefits of credit cards earlier in their lives. Through college credit cards, college students are able to learn more about credit cards and their use. In fact, for most students, their college credit card is their first credit card and a gateway to the world of credit cards. Some other students may have previously used a supplemental credit card linked to their father’s credit card account; however, for these students, their college credit card is also the first credit card that is truly theirs.

College credit cards are not very different from other types of credit cards in a basic sense; they function in the same way as any credit card. However, there are some differences, and these differences basically stem from the fact that college credit cards are used by people who have no previous experience with credit cards and who may not fully understand the concept of credit cards. Therefore, it is risky for the credit card provider to issue credit cards (college credit cards) to these people whom he is not sure about. Most students also do not have a credit history. In this case, the college credit card provider cannot be sure that the credit card bill payment will be received in time (or even at all). To counter this risk, college credit card providers require the student’s parents to co-sign on the college credit card application as a guarantee. In addition, college credit cards typically have a credit limit of about $500-$1,000 per month, which is lower than the credit limit on other credit cards (this credit limit is typically sufficient for a student’s typical needs). Another risk mitigation tool used by college credit card providers is the interest rate or APR. The APR on a college credit card is typically higher than the APR on other credit cards. Again, this is done to dissuade students from overspending on college credit cards (and ending up unable to pay their credit card bills).

However, if we look at these regulations in a positive light, we find that they actually benefit students (who are still being trained to deal with the realities of the credit card world). Moreover, a college credit card helps the student to build a (good) credit history, which is another important benefit that comes in handy when the student needs any type of loan at a later stage of his/her life.

Therefore, a college credit card is really something that every student should consider getting.