Q. What is a student credit card?
A student credit is short term finance, or borrowing money through a partnership with an issuing company. This type of card is specifically issued for students to aid them in establishing their own credit.

Q. How do student credit cards work?
Very simple. A student can simply use his or her credit card just like any other regular credit card. That student can simply charge his or her spending by charging it with the card. In general, students do not have a credit history and little or no income, so the credit limit starts at $300 to $1000.

Q. Why choose a student credit card instead of other types of cards?
Student credit cards are good way of establishing a credit history to prepare for the future. It helps especially when it comes to buying a house, a car, or applying for a job. Most companies ask for the credit limit on each transaction and every aspect of someone’s life is affected through credit.

Q. Where can a student avail of the best student credit card?
It really depends on the services and the terms on a student card. Since a credit line for students start from $300 up to $1000, each credit card has different interest rates. On students, the estimated interest rates go from 10 percent to 19.8 percent, which is a bit okay for the card holders.

Q. What is an APR?
An APR is the annual percentage rate, or otherwise known as the interest rate, that a student pays on a credit card.

Q. What are the different APRs?
The different types of APRs are introductory APR, fixed APRs, and variable APRs.
An introductory APR is mandated for those newly student credit card holders for a specific period (6 months to one year). Most of the time, the rate offered is low or sometimes 0%; and is applied to all purchases, balance transfers, and cash advances.
A fixed APR is a rate that is issued for a long-term period. The company only notifies the card holder if there is a change of rate before it takes effect. This may probably due to long-term economic factors.
Lastly, a variable APR is given to a student card holder where the rate is tied to another rate, such as prime rate or Treasury bill rate. Rates may change from day to day. However, this is not applicable to student credit cards.

Q. Where can a student avail of a credit card?
Visit any credit card company and apply. Or ask around from your friends if they may know any credit card issuers around the campus. Some credit card companies stop by at schools and campuses to offer their cards at school.

Q. What happens if a student fails to pay on time?
If a student falls behind on payments, that card holder will have no choice but to pay the balance dues. There is a possibility that his or her credit limit may be cut off, so it’s better to get a cosigner to pay for the bills instead.

Q. What is a cosigner?
A cosigner is a guarantor of the contract, the one who will pay another’s debt on a contract. Co-signing includes a promissory note to both parties.

Q. What happens if the credit card is stolen or lost?
Report it immediately at the card company to freeze that card. Since most cards have different codes, it is alright to avail of another card. The student won’t need to pay for unauthorized purchases.