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In search of new markets the credit card companies are targeting
college students and even high school students for their products
while trying to balance the increased risk involved. While
this has opened up a sea of options for the students, it can
also confuse their inexperienced minds. Students often report that they
respond to credit card offers that come through the mail or
get their first credit or debit card through the bank that
their parents use. Trusting parents' advice is almost always
a good bet, however it would be prudent for the student to
research on the credit card before choosing one. Statistics
show that a student's first credit card is often kept for
many years out of either initial loyalty or plain disinterest.
This is just another valid reason for the credit card companies
to offer the cards to you since you are likely to keep it
for a long time.
The next step is to search for different types of student credit
cards and debit cards. Searching the net on Creditcards.com
under Student Credit Card section, gives you detailed information
on the best student credit cards and allows you to compare them.
Using the free service of the net gives you unbiased information,
allowing you to choose one that suits you the most, than being
bound by the information given by your bank or by what you have
received in the mail. Major credit card companies such as Discover
Card, Chase and Citibank issue cards particularly for students
now and provide attractive rates and cash back rewards.
First and foremost you should know the difference between
a student credit card and a student debit card. A credit card
is a standard Visa, MasterCard, Discover or American Express
Card. There is usually a limited credit line of $500 - $1000
given initially and the student often requires a parent to
cosign to open the account (i.e. the parents carry the responsibility
of paying any unpaid outstanding balance).
A student debit card is a prepaid Visa or MasterCard that
does not require a parent to cosign if the student is at least
18 years old. These prepaid debit cards offer many benefits
to those with little or no credit history and are accepted
anywhere that is served by Visa and MasterCard. There is no
credit check to apply and the cards can be financed and reloaded
through the phone, over the internet, in person, or at ATMs.
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