Saturday, February 9, 2013


While the student credit cards can help guarantee people to establish their credit history, there are significant differences between these types of cards. Secured cards require a deposit savings account, while student cards generally do not require agreement to make payments on time and student's signature. In addition, secured cards are often an option as a "last resort" for adults who are not in school, while student cards are for those who are new to credit.

Student credit cards
Some companies offer credit card students credit card programs. These credit cards often have acceptance conditions quite easy: students do not have a credit history established for a card, and if the student is under 21 years old and does not have a co-signer, even a part-time job or student loans may be sufficient as a source of income. These cards are for those who are new to credit, students with a tainted credit history may not qualify for these cards.

Secured credit cards
A secured credit card is, as its name suggests, backed by collateral, usually a savings account.The credit limit on the account is equal to, or in some cases, slightly higher than the amount of money in the account of the accessory. If the cardholder defaults on his credit card guarantee, the credit card company can take money from his savings account to repay the obligation. Adults with no credit or bad credit can apply for and obtain secure credit cards.

Student credit cards secured may cause the cardholder to accrue additional fees. Secure card in particular may require users to pay an initial fee high "activation" and the monthly service fee or annual. The student credit cards can even extra charges, and both cards can charge higher than average interest rates.

There are some compelling reasons for students to apply and responsible use, student credit cards: credit cards are student the opportunity to easily establish credit, which is important when looking for a place to live or applying for a job. At the same time, both secured and student credit cards can damage a person's credit if she does not have the income to meet the payments or is not financially responsible. People who are wary of credit cards must use a debit card provided by their bank or prepaid credit card, until they feel ready for a standard card.