One thing that most university students intuitively know is that having a credit card is one of the essentials of life. Not necessarily to splurge on things they do not need but to build a strong credit rating so that when it comes time to make a major purchase, they will be in good standing. There are student credit cards that can ease a young man or woman into the credit world and help them demonstrate how responsible they can be with credit.

Credit Cards for Young People

Most young people have their own bank account. It may be one that their parents set up for them when they were a toddler, or it might be something they’ve initiated on their own with the money they’ve earned at a part-time job. In either case, the bank will probably be the best place to start when looking for student Visa cards. The bank will discuss the available options with the individual and see which of the student Visa cards best suits their financial situation.

In many cases a bank or credit card company will require that the young person have someone cosign their application. This is because student Visa cards are often the first type of credit a college student will be responsible for. Since they have no record of either a positive or negative credit history the companies offering the student Visa cards will want someone to carry the debt in the event the student defaults. If the student can work out an agreement with their parents, they will often take on the role as cosigner.

If this isn’t necessary the student may have to pay a higher rate of interest. Typically the rate that an individual with student Visa cards is expected to pay is on par with a traditional credit card. If the student has no known credit history and no cosigner is required, the onus to pay falls directly on their shoulders. These types of student Visa cards certainly do work towards building the person’s credit history, but they are a bit more expensive.

Having a credit car is a good thing if one is disciplined enough not to overspend and pay the balance every month. One way to get this discipline is having a debit card as soon as it is feasible - depending on where you live and the bank you deal with, the minimum age will vary - linked to a bank account with limited funds. They will learn there are limits to spending soon enough as this type of card does not allow a transaction to go through if there is not enough money in the account.

Having more than one credit card is equivalent to asking for trouble. The life of a student is complicated enough without having to control the balances and payments in several credit cards. Unfortunately some students unwittingly fall into deep debt because of credit cards. Many companies send out student credit card application forms to college students. They expect the college students to reply because they bait them with a very low introductory interest rate. When a student struggling on a tight budget sees this they are apt to apply and receive several. At the time they don’t consider the long term ramifications of having so many student Visa cards and carrying that amount of debt. Therefore it’s wise for them to remember that whatever they put on the card, each and every penny plus more needs to be paid back. Graduating with a mountain of already accumulated debt is not a great way to begin your adult life.