by Opal McGowan
One thing that most college students intuitively know is that having a credit card is one of the essentials of life. Not necessarily to splurge on things they don’t need but to build a strong credit rating so that when it comes time to make a major purchase, they’ll be in good standing. There are student Visa cards that can ease a young man or woman into the credit world and help them demonstrate how responsible they can be with credit.
I had such a wonderful feeling last night, walking beneath the dark sky while cannon boomed on my right and guns on my left ... the feeling that I could change the world only by being there.
— Viorica Butnariu, Rumanian student at Bucharest University. letter, Dec. 23, 1989, to American friend. Observer (London, Dec. 31, 1989)
Most young people have their own bank account. It may be one that their parents set up for them when they were a toddler, or it might be something they’ve initiated on their own with the money they’ve earned at a part-time job. In either case, the bank will probably be the best place to start when looking for student Visa cards. The bank will discuss the available options with the individual and see which of the student Visa cards best suits their financial situation.
In many cases a bank or credit card company will require that the young person have someone cosign their application. This is because student Visa cards are often the first type of credit a college student will be responsible for. Since they have no record of either a positive or negative credit history the companies offering the student Visa cards will want someone to carry the debt in the event the student defaults. If the student can work out an agreement with their parents, they will often take on the role as cosigner.
It is not easy to imagine how little interested a scientist usually is in the work of any other, with the possible exception of the teacher who backs him or the student who honors him.
— Jean Rostand (1894–1977)
If this isn’t necessary the student may have to pay a higher rate of interest. Typically the rate that an individual with student Visa cards is expected to pay is on par with a traditional credit card. If the student has no known credit history and no cosigner is required, the onus to pay falls directly on their shoulders. These types of student Visa cards certainly do work towards building the person’s credit history, but they are a bit more expensive.
Unfortunately some students unwittingly fall into deep debt because of credit cards. Many companies send out student Visa cards application forms to college students. They expect the college students to reply because they bait them with a very low introductory interest rate. When a student struggling on a tight budget sees this they are apt to apply and receive several. At the time they don’t consider the long term ramifications of having so many student Visa cards and carrying that amount of debt. Therefore it’s wise for them to remember that whatever they put on the card, each and every penny plus more needs to be paid back. Graduating with a mountain of already accumulated debt is not a great way to begin your adult life.