Student Credit Card 101

By Aaron Brooks [ 18/05/2007 ]

In the multi-dimensional and fast paced world of today you need to inculcate knowledge about money management in children from a young age. Since children generally move away from home to attend college they need to learn about credit cards and how to use them. Finance education is important as children who taste independent living for the first time can go astray when in the company of undisciplined peers.

• Most parents introduce their kids to the use and management of credit cards while they are living at home. As soon as a child turns 18 parents may: give the child a “companion card” to their personal credit card or get the child a student credit card.

• Student credit cards are especially formulated for use by students and have certain restrictions in built to protect the student from over spending.

• The bank or institution offering a student credit card will initial offer a limit of USD 500-1000. Increases in credit limit are okayed if a parent or guardian becomes a co signer and takes responsibility for payment of bills.

• Most student credit cards have a higher interest rate as the risk for the bank or financial institution is greater.

• Before choosing a card it is important to carry out a comparison study and decide whether the student should have a credit card, debit card, flexible rewards card, or prepaid card. The parent or guardian must sit with the student and discuss in detail what each kind of card offers, the billing, interest payable, as well as rewards.

• Teach the child the importance of comparing various offers. Determine what is most suitable and affordable.

• A child must comprehend the rules of credit cards, understand the credit card statement, know about interest rates, card fees, and the problems caused when only a minimum payment is done.

• A child must never charge more on a card than can be paid back at the end of a month. And, a parent or guardian must never pay unpaid bills or bail a child out. If this happens a child will never learn to be responsible with his credit card.


• It is important for the student to realize that a card is a convenience and to be used in an emergency. It must never be used as additional spending fund.

It is important for a child to know what a credit score is and how to build an excellent credit report. It is imperative for the child to realize that a credit card is a responsibility and not a toy.

A student credit card gives a young adult a sense of security and teaches the child how to manage his or her finances and set the foundation of building a solid credit score and report. Lessons inculcated when young are never forgotten and handling a student credit card is an important hurdle to cross on the path to adulthood.

About the author:
About the Author : Aaron Brooks is a freelance writer for Free Credit Card , the premier website to find information on Credit Card including topics on credit card market, credit cards, business card credit comparison, card credit processing, credit card reviews, credit card offers, card credit deals and more. He also freelances for the premier Payday loan Site

Article Source: http://www.Free-Articles-Zone.com

Bank of America Student Credit Card

By Jeremy Biberdorf [ 03/04/2007 ]

As a college or university student, you are often living away from your parents for the first time. You want to show your parents that they don’t have to worry about you. Many students are too proud to ask their parents for help. So what does a student do when they need to order something online? What about when renting a movie? A student needs a credit card to be independent from their parents.

One of the most popular student credit cards is the Bank of America Student Visa Platinum Plus Credit Card. Unlike most other student credit cards, a student doesn’t need a cosigner to apply for this Bank of America student credit card. They won’t need to ask their parents to put their credit at risk. In some cases, their parent’s bad credit could even prevent them from getting other student credit cards.

If you are going to college or university, you are planning your future. Part of that future may involve a house or car. To finance those things, the banks look at your credit history. The longer you have built your credit, the more the banks trust you. As a result, the banks will be willing to lend you more money with better interest rates. Even if you don’t use your credit card, getting a credit card at a young age can help you later in life.

The Bank of America Student Credit Card offers other conveniences such as:

Online Banking Service – easily access account activity, credit card balance and payment due date. Pay your credit card bill online for free too.

Total Security Protection – a free package of security features including: zero liability from unauthorized use, fraud monitoring, online protection and photo security. So you can even have your own photo on your credit card.

Purchase Replacement – provides repair or replacement for card purchases that are stolen or damaged within 90 days. Plus it doubles the warranty on card purchases with a US warranty of 1 year or less.

Travel and Emergency Assistance – offers various services including: medical referral assistance, legal referral assistance, pre-trip assistance, lost luggage assistance, emergency ticket replacement, prescription delivery, and emergency translation assistance.

Auto Rental Insurance – get car rental insurance automatically with your credit card. Without this card feature it could cost hundreds of dollars more to rent a vehicle.

You also get no annual fee, additional cards at no charge and cash advance checks at no charge. Few other student credit cards offer so much, especially with no annual fee. Although the Bank of America student credit card doesn’t offer a reward points system, it still is one of the best student credit cards available.

About the author:
Apply for Bank of America student credit cards online for free. Also compare other college student credit cards or cash back credit cards.

Article Source: http://www.Free-Articles-Zone.com