Credit cards for college students - life-savers or rip-offs?

Credit cards for college students, when used responsibly, can represent the first step towards building a good credit history. However, without some basic principles of budgeting and financial responsibility, all types of credit cards for college students can lead to a considerable debt.

Before applying for one, consider all aspects and analyze all advantages and disadvantages. Do not apply for those credit cards for college students if you're not sure that you can use credit cards responsibly, or else you can end up with a great debt one you graduate. Also, to avoid a financial disaster, it is advisable not to charge your tuition to the credit card.

The legislation regarding credit cards for college students has changed as of February 2010, in order to protect students from the consequences of misusing credit cards. However, in the end it's still up to you to use it responsibly. Credit card companies are not allowed to issue cards to students under 18 years of age, while students under the age of 21 will need either an adult co-signer, or proof that they have the financial means to pay the bill. 

Credit cards for college students can reach some of the highest interest rates, since students don't have an established credit record. Companies offering all sorts of credit cards for college students are allowed on campus, in fact many colleges earn a fair amount of money from creating affinity credit cards which include the name of the college, or simply by allowing them this practice.

In order to protect yourself from potential financial disasters, learn as much as possible about fees and interest rates before applying for ay kind of credit cards for college students. They sound great, but if you analyze all aspects carefully, they're nothing more than high-interest loans. Annual fees range from $20 to $100, finance charges for the unpaid portion of your bill can reach as much as 25% per month, not to mention that the interest rates for cash-advance fees are even higher. If you add to that some late payment fees, usually around $25 - $50, you can end up in a pretty tough financial situation. And keep in mind that late or missed payments stay in your credit report for 7 years. 

To avoid such situations, learn some basic principles of credit management. Credit cards for college students are designed to sound very appealing, but be sure to read carefully all application materials; pay special attention to the fine print. There are essential aspects you should be aware of, such as the interest rate for a cash advance, the interest rate if you're late with or miss a payment, or what happens when the 'teaser rate' expires. 

Be prompt in paying your bills so you can keep your finance to a minimum, and if possible, pay off your balance. Apply for credit cards for college students only when you're positive that you can repay the debt. The credit card is designed to help you in cases of emergency, so try to avoid using it in excess for unnecessary expenses or impulsive shopping. If you would like to learn more, visit http://www.studentcreditcardapplication.net/.