Which Student Cards Are The Best Credit Cards For Students

What are the best credit cards for college students and especially what are the best credit cards for college students 2010, because let’s face it, right now we are in an economic crisis and everyone is struggling. I always recommend to those that ask that they get their college student a credit card, so that they can begin to build credit. However, the best credit cards for students may be the ones that are secured by their own money in today’s market, because with penny pinching and tight budgets everywhere the last thing that a parent needs is to be responsible for misuse of a credit card.

Let’s talk about the best credit card for student and what features that you should look for as well as whether or not to choose to let them “piggyback” off of your own credit, or secure the card with their own money. The best credit cards for students are ones that offer academic incentives. For instance, an extended grace period or lower rates for academic performance. These type of cards exist everywhere as many credit card companies have special programs that cater to college students and by asking your bank or looking online you should be able to find a program that you like.

Some parents choose to let their college student build their credit by co-signing on a college student’s credit card. If you want to do this that’s fine, but be aware that if your student defaults on their credit card you will be responsible for the payments, and the late payments may be reported to your credit file as well as your child’s. This means that you could take your perfect credit down quite a few points by having a couple of missed payments if your student is irresponsible with the card or chooses not to make their credit card payments.

You can go with secured credit cards if you’d like. These type of cards are secured with a cash deposit which you usually get back in a year if all payments are made on time. The benefit to this card is that you won’t have to put your own credit history on the line, because anyone can get a secured credit card regardless of their credit score. Also, these cards come in a variety of amounts, from $200 all the way up into the thousands, and most secured credit card companies will report to your credit, so that you can build a good credit history while using the secured credit card, which is just what your college student needs.

Talk to your child about credit cards and make sure that they know how they work. Calculate the interest for them in a variety of scenarios and make sure they know what making just the minimum payment will mean in the long run. Teach them how to use a credit card correctly and they will be able to build their credit so that they can buy a car or a home in the future. Whether you choose to go with a secured credit card for your student or let them use your personal credit history to get a card, make sure that they are well informed about their credit cards and how they work.