The Student Credit Card is a credit card that meets the special needs of college students or consumers establishing credit or re-building credit lines. There are many advantages to having such a card but there are also many questions about the use of the Student Credit Card. Credit limits are lower than most credit cards and restrictions apply. One such card that students can apply for is called the “future card” It is important to get some basic information about the card before applying for one.
Firstly, there is no fee to apply for the student credit card. You can choose an unsecured card or a secured card with different credit limits and benefits.
Student Credit Card Unsecured card:
The initial credit limit is at least $250.00 up to a maximum of $1,000.00. Your credit report and annual income determine the amount. There are a number of start-up fees:
- The annual fee is $69.00 for the first year, then $50.00 annually after that.
- There is a one-time account set up fee of $19.00
- A one-time fee program fee of $79.00 (processing fee and credit bureau report)
- A monthly participation fee of $5.00, (allows holding card in a program with benefits)
- A late fee of $25.00 applies to late payments and $25.00 fee if credit limit is exceeded.
- The annual percentage rate is 18.9% for average daily balances of $1000.00
Student Credit Card Secured card:
This offer is much like a debit card but allows you to establish credit. The security deposit account is used to secure your student credit card. The initial credit limit is equal to your security deposit account with a balance of $200.00 to $5,000.00.
- The annual fee is $69.00
- A late fee of $25.00 applies to late payments and $25.00 fee if credit limit is exceeded.
- Other fees may apply.
The student credit card offers cash advances with fee applying. On purchases there is a 25-day grace period and balance transfers are usually not permitted. Banks such as Capitol One is one place you can apply for the credit card. You can talk to an associate about debt and how credit works while processing your student credit card application.
For the student or individual establishing credit or re-establishing credit, the student credit card is a good option available. You can get cash when you need it and have all the benefits of a regular Visa credit card. It is especially convenient to make Internet purchases.
