subject: Low Interest Student Credit Cards - What You Need to Know [print this page] Sometimes getting a credit card can be hard enough for the average person with a steady nine to five job, so for a student to get their own credit card, sometimes it can be even more complicating. This article is going to cover a low of topics that you should know and understand before applying for a student credit card.
A lot of low interest student credit cards are going to require the parents to sign for their child, as a dependant financial source, should the student not have enough credit history. With that said, the parent may then be responsible for what the student does with their credit card. It's the responsibility of not only the student, but also the parents of the student, to understand what they are signing up for, before placing their signature on the bottom line.
- Low Interest in the Beginning, High Later On
Another important thing to look for when signing up for a low interest student credit card, is to make sure the low rate they are advertising, actually sticks around. A lot of cards will offer a very low 0% or 1% tickler rate to bring people in, but then after six month or a year go by, this rate jumps up to 20-25%. You may also see a large jump in your credit card rate if you miss a payment.
- Stacking Up Debt Quickly
The most alarming fact about low interest student credit cards, is that for most students, it's their first credit card and they don't understand how fast debt can build up. With a low interest rate, most students think they can pay it back later, but it usually never happens that way. If a student was to make a $1000 purchase and only paid $25 per month towards a credit card that has 18% interest, they would end up spending over $115 more for that purchase than paying it all off at once.
Before jumping at the next low interest student credit card that you see, make sure to read all of the fine print and not get swindled into something else. If you are signing up for a credit card for your child or student, make sure they are aware of their credit limit and interest fees on all cards.
Low Interest Student Credit Cards - What You Need to Know
