Student Credit Cards: opportunity or risk?

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The days of credit card companies marketing aggressively to students on campus are gone, as they’re presented with the requirement to be more innovative in this approach. Yes, they used to set up folding tables on campuses just to sign up as many students as they can for their cards.

However, new requirements and a modern age have forced banks to rethink their marketing strategy for student credit cards. Don’t get it wrong, they’re still a great opportunity for students to establish and build their credit history.

The Basics of Student Credit Cards

Just like traditional credit cards, you get all the convenience but often without high-interest rates and annoying annual fees. Thankfully, financial institutions have come to the realization that students deserve a break so that they can have a solid foundation to build from in life.

Aside from that, banks have also started focusing on providing financial education to students who they serve which has proven to be a great way to make it more appealing to embrace this form of credit.

Student Credit Card Benefits

What makes this route different from more traditional routes? We’ve highlighted some of the biggest differences for you below.

· Easier approval for students than other credit cards.

Financial institutions understand that students are just starting their path of life for the most part, and low or no credit is the norm. It’s for this reason that they provide an easier approval process than cards that they would market to other types of consumers.

· Lower interest rates to make them more affordable.

Being strapped for cash while pursuing higher education isn’t something that is rare. In order to help students actually build their credit instead of destroying it right out the gate, banks have started offering lower interest rates on their student credit cards.

· Student-specific rewards and benefits are made available.

We all know that there are tons of different types of credit cards out there designed to fit around a wide array of different spending habits. For students, lenders have designed these types of cards to fit the normal spending habits that one has when living the campus life. Another cool benefit among student credit cards is providing a credit on account statements if you get good grades.

The most important thing to keep in mind as a student is this is an opportunity to get started on the path to a good credit score that can benefit you in the future. Take advantage of the chance to build your financial knowledge while having a solid footing to build your life upon after graduation.