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If you are a college student or would be the parent of one, it would not be unexpected should you were to want to obtain a credit card to help with spending money on ongoing monthly college expenses. And obviously, a low interest card would be preferable because it would save you money over period. In fact, student credit cards happen to be a staple of the financial existence of students for over three years. During the '90s and '00s, particularly, card companies aggressively pursued college freshman, enticing them to register for new cards with the guarantee of cash-back offers and giveaways. However, before you obtain a credit card of any sort, it may be beneficial to consider all of your options when it comes to how to pay for college residing. Even a getting yourself a a low interest rate card can potentially get a university student into financial hot water as building up overwhelming debt over period. The combination of high interest prices, excessive fees, and undisciplined students has resulted in a growing debt problem for many university students. Here are 5 insights about why you need to beware of even a low rate of interest student credit card: 1. A student card is becoming much harder to secure on a person's own: As per new legislation handed in early 2010, credit companies are no longer permitted to approach college campuses or to offer free giveaways in an effort to pursue new sign-ups. 2. Your card will need a cosigner: In addition, the new legislation stipulates that anyone under 21 is now required to possess a cosigner on their credit cards. Generally, this means a parent - although some students will make the most of loopholes, such as having a graduate student cosign the applying. 3. Low rate student cards tend to be accompanied by hidden fees: Students think it is very difficult to qualify for a low interest rate credit greeting card offers, even with a cosigner. Nevertheless, even when they are approved for any low interest card, there is generally a downside to such deals, like the presence of excessive fees like yearly fees and account sign-up fees. 4. You will probably end up with about $4, 100 in credit debt upon graduation: According to a current Sallie Mae study, the average university student carried about $4, 100 in greeting card debt upon graduation. The takeaway: higher interest or low, most student cards wind up building up very high balances through the time the student graduates. This debt might follow the student for a long time. 5. Consider a prepaid debit greeting card instead: One viable alternative to obtaining a student card: get a prepaid debit greeting card instead. The user (student or his/her parents) just loads the card having a balance in advance. These cards feature the major charge card logos, so they can be used anywhere credit cards is accepted. But, there is absolutely no application process, no credit check, with no cosigner required. And, more importantly, there isn't any interest paid and no way to operate up a balance that will follow the student around for a long time after graduation. Consider these 5 insights as you decide whether to obtain a student credit card. One viable option for you personally: have the parent cosign on credit cards application for the purposes of while using card as an emergency backup. However, for daily expenditures, use a pre-paid debit card instead.






Find out more about student charge cards and prepaid debit cards at: Student Credit And Prepaid Cards.

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