| Most students are probably allowed to use | | | | measures like asking your parents to counter-sign |
| extension or supplementary credit cards linked to | | | | the application form as a guarantee that in case |
| any of their parents' personal accounts when they | | | | you will default your payments, they can go to |
| go to college, but having a college credit card for | | | | your parents to collect what you owe them. This |
| their own use is just a step towards | | | | is security on their part. |
| independence. | | | | There is also a lower credit limit to students. This |
| College credit cards are popularly known as | | | | could be less than 1,000 USD a month, an |
| student credit cards and these are specially | | | | estimate the card companies see as adequate to |
| designed for college students. This is a big | | | | meet a student's needs. This is a good training |
| advantage for them because through this they | | | | indeed for the students to practice disciplining |
| can enjoy the benefits of making transactions | | | | themselves in handling their finances; to learn the |
| using plastic very early in life. This is a way of | | | | valuable lesson of not spending more than what |
| introducing and initiating the students into the real | | | | they can pay for. |
| world of credit cards, opening their eyes into | | | | Students must also be aware that there is a |
| understanding the concept of this piece of plastic | | | | higher interest rate on the college credit cards |
| money, its uses, benefits and its pitfalls, too. | | | | compared to the other regular cards. This is done |
| College credit cards functions the same way | | | | with a purpose because the card companies and |
| regular cards do, except that these are issued by | | | | suppliers want to make the students aware of |
| card companies to students who never had any | | | | the dangers of overspending on their credit limit. |
| plastic money before. In fact, this is the very first | | | | They may not be aware of it but bills pile up |
| card students get that they have total control of. | | | | faster when you go on a buying spree every |
| With this in mind, the card suppliers are risking | | | | now and then. The credit card companies want to |
| their business in issuing cards to students who | | | | teach the card holders that they should control |
| may not have a clear understanding of the whole | | | | their spending. |
| concept yet. It is just like trusting your finances | | | | Indeed, having a college credit card is a hands-on |
| to a complete stranger whom you know nothing | | | | training into the actual world. When the students |
| about his credit history. | | | | go out into the real world, they are already |
| Holders of college credit cards can be considered | | | | well-oriented and know what to do. This piece of |
| as a business risk because the respective card | | | | plastic is indeed something that college students |
| companies cannot be sure if you will meet your bill | | | | should have because it will teach them valuable |
| payments on time. To protect their business | | | | lessons about spending and budgeting. |
| interest, credit card companies initiate some | | | | |