Should You Get A Pre Approved Student Credit Card?

When you are young you have very high aspirations and energy levels. One is found to lack the emotional and financial maturity. There are numerous cases of students losing their financial credibility because of the irresponsible way of handling their credit cards. For such students getting credit cards often becomes a hassle in the future and they start their life with a credit score which the lenders will never like.

The financial crisis world over has seen people struggling with their credit status. Things are never easy now when you are out there ,seeking a credit card as a student. Lenders have become extremely cautious of the credit decisions and they try and ensure from all the quarters that the credit card allocation happens to only those who are in a state that they can repay them. However, the same becomes a little difficult in case of the students and hence they are now asking them to get cosigners and collaterals before they offer the student credit cards to the students.

Now while you know all that is happening in the credit world imagine a situation where you find that you have been offered a pre-approved credit line. This can be really a difficult situation and all you need to do is to check all the terms and conditions and the underlying facts before you actually latch on to them. There might be certain details in the fine print which can come as a surprise to you once you start using them. So never, take any offer ; get your details clearly so as to prevent any losses.

The Underlying Facts

There are several laws which govern the credit card functioning  and the way they should operate. Credit card companies know that if they offer credit cards to the students who are of lower age and do not have the financial maturity, will often end up spending a lot and paying huge amounts of  money to the credit card companies. The Credit Card Accountability, Responsibility and Disclosure Act state that the credit card companies cannot send pre-approved credit line to people below the age of 25years. Another, the Credit Card Act often requires that those who are below the age of 21 years should have a cosigner while they apply for the student credit cards.

In spite of these laws, the credit card companies keep on making pre-approved offers to the individuals. They thus break the rules and are undeterred towards these activities. There are several universities which get into agreement with the credit card companies for the distribution and the confirmation of the credit card documentation and the essentials which are required by the different credit card companies.

Getting a student credit card is often on the minds of the students but there are several other pointers which need to be kept in mind by them while dealing with these companies. These are as stated below:

• Interest rates on the credit cards are the most essential aspects one needs to be aware of. So while you receive several offers for the credit cards it is essential that you the research and find out the best and the reputed credit card companies and also those which are offering the best lending terms.
• Although there is no fixed criteria for the interest rates on the pre-approved cards, one should look out for the ones which offer anywhere between 15% APR.
• One of the aspects is including your parents in your commitments. If you can have parents cosign your agreement , the credit card interest rates can come down considerably. This can also offer a lot of flexible terms in the offerings.

Getting a student credit card and maintaining it properly with the right amount of expenditure on them and then repayment of the same is the crux of the matter. Students who are concerned about the same are known to have good credit scores and they can always stand better chances of a higher financial credibility in the times to come. Visit here for more updates.