A student credit card is an interesting option to start building your credit history.
Some of these plastics offer benefits and exclusive promotions for this segment of the population that allow you to save money.
What are student credit cards?
To enter the university is not only to leave behind the house of our parents, but there begins a stage of financial independence and adult life requires the good use of our money, because we are no longer children.
Financial institutions see in young people a very attractive segment for the sale of cards for university students in the US.
Why can a student use a credit card?
These young-adults begin to make more important expenses, inside and outside the educational field; therefore, requesting a credit card for a student can now be done on the Internet.
Pay rent for an apartment, outings with new friends, travel or related topics such as studies such as books, career materials, or university enrollment, among others.
Given the previous reasons, we see that there are credit cards for university students, but what are they?
How do the cards work for students in the US?
This type of card for university students is a means of payment aimed at this specific segment with financial advantages that allow the student to keep track of expenses and manage their money.
Benefits and discounts of the cards for university students
It is a credit card that usually has agreements with universities that adhere to this methodology (each bank has agreements with different educational establishments) so it allows discounts on enrollment or financing.
Also access to promotions in purchases linked to the studies such as textbooks or material related to the chosen career, although in the last time they have begun to offer a student card to travel abroad.
But outside of education, it offers promotions and discounts that the bank has for university students, such as restaurants, cafeterias, cinemas, concerts, clothing and other commercial establishments.
They usually offer discounts, pre-sales, months without interest for these purchases. Some banks have exclusive days for these payments and others allow it without restrictions.
Rewards and discounts
Also the credit cards for university students are enrolled in the programs of points or rewards that allow the students to add up with each qualified purchase, an allow them to be able to exchange for prizes.
Another advantage is that being a product aimed at a segment that has a limited purchasing power, usually does not punish the “no use” of plastic and in the months where it is not used does not charge expenses to encourage the customer to keep despite being in that situation.
Among the benefits that have appeared in recent years, and given that these credit cards are for young students, there is a new channel of communication between the bank and these customers: social networks.
Through them they can access promotions and benefits, but it is also the means of communication for consultations, avoiding losing time in the branches.
In addition, both account statements and payments are usually made through electronic means, 24 hours a day, and 365 days a year, on the Internet or through cell phones with applications that save time and money since in many cases they are free services.
Insurance contractible from the card
Finally, they include a very useful service that is that of the associated insurance. Some of these cards for university students in US have a road, medical, or legal assistance program.
Another coverage is the release of balances by death and travel insurance national and international travel by paying all tickets.
Minimum monthly income
Minimum and maximum age (usually point to the young segment).
In recent months many young people are requesting cards for high school students. At the moment there are no offers because it is required to reach the age of majority.
I am a minor, can I ask for a credit card as a student?
Credit cards for young students are available for people from 18/20 years, although it will depend on each financial institution.
What are the costs of credit cards for college students?
As happens with credit cards for travelers or any other type of user, they have associated costs that we will have to pay. Some every month and others only when a certain linked service is used.
Credit cards for university students apply the following commissions:
Annuity (there are cards without annuity too)
- Credit facility branch office
- Get credit at the bank’s ATM or network
- Disposition of credit at an ATM abroad
- Registration to programs
- Printing of account statement / movements in branch office window
- Replacement for theft and loss (holder and additional)
- Commission for clarification
- Late payment fee
- Commission for improper clarification of unrecognized charges
- Request for deferred charges from the line of credit
- Use of correspondent network infrastructure for cash disposal
- Use of correspondent network infrastructure for card payment
In addition, when you use ATMs, you also apply commissions to different transactions in terms of the provisions:
- Maximum amount per day or month national cashier
- Maximum value per day or month at an international cashier
- Maximum amount per day or month in branch
Be careful when you use a student card to travel abroad and you make withdrawals at ATMs because the fees can be high and in foreign currency.
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