The Basics of Student Credit Cards

Student credit cards can be a great way for you to get your foot in the door with the credit card industry. If you have not built a credit history, getting a credit card can be difficult to do because credit card companies have no way of knowing how responsible you will be with your credit card. By being a student, however, the credit card companies assume you have a certain level of responsibility and are more willing to take a chance

Unfortunately, student credit cards tend to have a higher interest rate than standard credit cards. More than likely, this is a characteristic you will have to learn to live with – at least for the time being. After you have proven yourself to be responsible with the card, you can ask the company to lower your interest rate or start applying for other credit cards that offer better rates to begin with.

In order to be in the position to request a lower APR or to apply for a card with a lower interest rate, you need to be sure to pay your student credit card on time at the end of each billing cycle. Use the card as much as possible because an inactive card does little toward building your credit history. A frequently used card, when paid on time, can go a long way.