If you are a college student you probably already recognized the need for having a college student credit card while in college. During this time money is limited and a credit card can go a long way in providing the funds available to purchase the necessities. These cards can be advantageous but they must be used wisely. It all starts with choosing a good card to begin with and in order to do so you must understand the different types of cards and the pros and cons of each type.

Unsecured Student Credit Cards

With unsecured student credit card a line of credit is extended with the condition that any charges made must be repaid. Most college students have little or no credit history which makes it a little more difficult to get approved for the credit card because lenders are understandably wary of giving credit to someone who they have no idea of their ability to repay the loan extended.

College student credit cards are exactly the answer to dealing with this lack of credit history. A lot of providers of these type of credit cards understand that most college students do not have credit history and they will need a line of credit to establish one and pay for the things they need while in college. They keep the credit limits low and charge higher interest rates because of the increased risk of lending. They extend unsecured credit cards by having someone, like a parent, cosign and based on the fact that you are already showing a level of responsibility by being in college.

Advantages of unsecured student credit cards: The key advantage to unsecured credit card is that you have a line of credit available to use when you need it. As a student this is important at a time when you are strapped for cash. You can use the line of credit to pay for books and other school supplies that you will need to get through college and as long as you are able to repay the balance it is quite a life saver. Finding an unsecured college student credit card with no annual fees and low interest rates is an added bonus.

Disadvantages of unsecured student credit cards: An unsecured credit card can lead to overindulgence and spending beyond what you are able to repay. If you keep this up eventually you can use up the credit limit that is extended to you and if you do not pay off your balance you will be subject to high interest rates. Furthermore, late payments or failing to pay the minimum payment every month can lead to negative strikes on your credit report. This is not a good way to start off your financial future as it will impact your ability to get a home, car or even a job.

Secured Student Credit Cards

With secured student credit cards money must be deposited head of time therefore you will be only using the money that you have available. This is a very similar concept to a debit card in the way it operates although they look just like the unsecured credit cards.

Advantages of secured student credit cards: These cards offer the flexibility of a credit card without the unnecessary debt. With these cards parents can easily make a deposit to assist their college students and the students can use the card anywhere credit cards are accepted. They are able to meet the expenses of college knowing that they are not getting themselves into debt.

Disadvantages of secured student credit cards: The fees that are associated with these types of cards are the major drawback to having them. There are fees to set up the account, annual fees and even fees for deposits and withdrawals. These fees can really add up and even make it impractical to get a card of this nature. The other disadvantage is that if you have not deposited any funds on the card you will not be able to charge anything to the card.