College credit card
All about college credit cards
College credit cards are the credit cards that have been specially designed for college
students. College credit cards are more popularly known as student credit cards. College
credit cards allow the students to experience the benefits of credit cards much earlier in
their life. Through college credit cards, the college students are able to learn more about
credit cards and their use. In fact, for most of the students, their college credit card is
their first credit card that acts as a gateway to the world of credit cards. Some other
students might have previously used supplementary credit cards linked to their father’s
credit card account; however, for such students too, their college credit card is the first
one that is truly theirs.
College credit cards are not very different from other types of credit cards in the basic
sense; they function in the same way as any credit card would. However, there are some
differences, which basically arise from the fact that college credit cards are used by
people who have no prior experience with credit cards and who perhaps don’t
understand the concept of credit cards completely. Hence, the credit card supplier is at
risk with issuing credit cards (college credit cards) to such people whom he is not sure
about. Most of the students don’t have a credit history either. In such a case, the supplier
of college credit card cannot be sure of receiving the credit card bill payments in time
(and even receiving them at all). To counter such risks, the supplier of college credit card
requires the parent of the student to co-sign the college credit card application form as a
guarantee. Moreover, the credit limit on college credit cards is generally around $500-
$1000 per month, which is lower than what it is for other credit cards (this credit limit is
generally sufficient to fulfil the typical needs of a student). Another risk mitigation
instrument used by the college credit card suppliers is the interest rate or