What’s a good credit card for a college student?
2 August 2006That’s what CNN recently asked several experts in this article. The three favorites were:
mtvU Platinum Select Visa Card for College Students - This card was at the top of almost every expert’s list. Joseph Ridout, spokesman for the advocacy group Consumer Action, said one of the most impressive things about this card was not the rewards, but the fact that students received points for paying their bill on time and for getting good grades.
Ohio Savings Bank Student Platinum Plus Visa or MasterCard - Students with a limited or no credit history that apply for this card should be able to secure an annual percentage rate of 13.99%, notes Arnold.
Sovereign Bank Student Credit Card- Available in as either a MasterCard or Visa, this card offers a stunningly low 9.90% fixed interest rate, making it one of the lowest credit card rates out there right now, says McHenry of Indexcreditcards.com.
This is, of course, assuming you want to let your kids have one when they’re in college. Don’t fool yourself about who is in charge - if you’re paying the bills, you should control the finances. There are really only a couple of good reasons to ever get a credit card for a college student - first, for emergencies, it’s a good idea to have one with a small limit - about $1,000 - that you never use. However, you can get the same benefit by just saving up $1,000 in an emergency fund - and your kids will be less likely to spend from it. Second, it can be a good way to build credit. But if that’s your only goal for your kids, have them sign up for the credit card and give it to you. Then use it to buy something cheap each month and pay it off - giving your kids credit without giving them a chance to blow money on stuff they don’t need.
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