Are student credit cards that much different than regular credit cards?

Studies indicate that between the time a freshman goes to his or her first morning class and graduation, that student will have doubled the amount of money owed on any existing credit card and will have collected three times as many additional credit cards besides. Millions of students and young adults across America are currently in debt to credit card companies because it's been easier for an unemployed student with no credit history to obtain a credit card than for some people who have been working at low-wage jobs for years.

A credit card may be viewed as a necessity for the student, especially one who is away from the comforts of the parental bank account. There is certainly nothing wrong with a college student having a credit card to cover such expenses as books, food and gasoline more convenient. The problem arises when that card is used to pay for items that aren't necessities. Far too many students have discovered the ease of moving from buying pizza and gas to buying clothing, iPods and even weekend getaways on credit. This is the point at which college credit cards differ from regular credit cards, meaning the difference between leaving college with an affordable level of debt and leaving with an overwhelming level of debt, which may very well end in an attempt to file for bankruptcy. Remember that filing for bankruptcy is not as easy for individuals as it used to be.

One type of credit card that is preferable for students just learning to deal with credit is a co-signed one. This credit card is issued in the names of both the co-signer and the student, but only by virtue of having an adult (usually a parent) who has an established line of credit also accepting responsibility. If the student neglects to pay off the debt, that failure is reported on the credit history of the co-signer. The very real threat of damaging the credit of the co-signer usually is enough to keep the student in line, which makes this perhaps the best student credit card.

Another student option are prepaid credit cards. In this case, the student deposits money at the bank issuing the credit card and receives a card with a credit line based on the amount of the deposit. The downside of a secured credit card is that, in many cases, the student will not be able to obtain a card unless employed at least part time.

If a card obtained with a co-signer or a prepaid credit card is not available, many issuers have programs designed especially for college students. Proof of enrollment is required, of course, and the credit lines are almost always smaller than conventional credit cards. These special programs are available from most banks, as well as the major credit card companies.

Timothy Sexton

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