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