It must be hard for a parent to receive that desperate phone call from their college age child who is out of money and far away at school. Student credit cards can solve the problem, if used wisely, bringing peace of mind to parent and student alike and saving many a trip to Western Union or the post office.
One of the biggest benefits student credit cards offer is that they can teach a student financial independence and responsibility, provided they are used right. The parent can reinforce the importance of debt repayment by insisting that the student obtain a part time job to cover the cost of charged personal expenses. Student credit cards also introduce the interrelated concepts of interest charges and late payment fees and illustrate how rapidly they accumulate on unpaid and overdue credit card debt. Student credit cards can even develop budgeting skills as the student learns to make (hopefully) sound choices on how best to utilize the credit balance.
The wise lender views college students as risky to start and will issue student credit cards with low borrowing limits and higher than average interest rates until the student establishes a good credit history. Building a good credit rating early on will undoubtedly help after graduation when the time comes to rent an apartment or buy a new car.
College students are typically bombarded on campus with offers for student credit cards. Research the advantages and disadvantages of the various lenders that issue student credit cards before choosing the one you will do business with; reviewing the terms of the credit agreement is a good place to start. Also, parent and student should look for the APR (annual percentage rate), determine whether there is an annual fee for using a particular card, a fee for transferring balances, whether that lender requires a cosigner, and how much the student can afford to pay each month toward the card balance.
Student credit cards offer protection for online purchases, which is a huge benefit in itself. Purchase protection is essential now that so many transactions are made electronically. There are so many positives to student credit cards, in that they build budgeting and financial management skills and help establish a good beginning credit history, that it is almost foolish not to allow a college student to have one. If used wisely, student credit cards are an invaluable partner in teaching your child independent living skills.

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by: barrywaters
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See more on the topic of secured credit cards, goto getsmart.com/credit-cards.

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