There are a number of reasons students may wish to acquire a credit card and believe it or not, most major credit card companies offer student cards. Student cards are unique in that they are provided only to those who are students and are over the age of 18. These cards are tailored to fit the needs of young adults in collage as well and provide the card holder with a great opportunity to start establishing credit history, for his or herself, without creating a pathway to debt.
College students, who are more often than not living on a very tight budget, can at times find themselves in a financial pinch, be it the need for extra school supplies, books or in extreme cases, they may even be short of food money. For such situations, instruments like student cards can come to the rescue and get that student out of a momentary money pinch while at the same time capitalize on their money misfortune by helping the student establish some credit worthiness.
In addition to being a finical safety net for students, these are a great way for young adults to teach themselves financial discipline. These cards have a low line of credit, typically between a few hundred to no more than a couple thousand dollars. This low line of credit helps to prevent the student from getting themselves into credit debt and also forces them to pay down the balance, so that in the event they are in need of extended finances, there safety net is still available. Incented by low annual percentage rates on new purchases, some as low as 0%, students often find themselves paying off their student credit cards immediately to avoid interest payments that will occur on balances that are carried over into the next billing cycle, a great lesson in financial discipline.
Another feature unique to these cards is grade incentive rewards programs that are offered by many companies that provide student credit cards. There are many other rewards programs offered that are aimed to promote both academic and finical success to those who utilize these student credit cards.