If you have a child heading off to college and have concerns about unexpected expenses or emergencies, a US student card could be the ideal solution. While this type of credit card is helpful even if the student lives in town, it is especially advantageous for out of town students. In addition to providing peace of mind for you in difficult situations, a US student credit card also provides the opportunity for the student to start building credit.
One important thing to consider is that just as a US student credit card could help establish good credit it could also result in the student developing a poor credit rating. Because of this, you would need to decide if your child is responsible enough for such a card. Now, some parents choose handle all the payments on student credit cards to make sure payments are never late or missed but overall this defeats the purpose.
The best option would be to look at US student credit cards with a low credit line. For instance, if the card had a spending limit of $300 to $500, it would be adequate for textbooks, lab fees, a flat tire, trip to the doctor, etc but still within a range that would not allow the student to get into too much trouble. When talking to financial advisors, all agree that before a US student credit card is chosen, it would be essential for you to educate your child about credit, spending, and financial responsibility.
Once the decision is made to get a US student credit card for your child, the next step is to look at different issuers and the different cards available so you the best card for your child could be chosen. As with other types of credit cards, student credit cards come in a wide selection of types, which means features and benefits vary. Therefore, spending time to look around would be to your benefit in the end. Of course, the easiest way to accomplish this is by conducting research online.
As for features, you have numerous options, some that could be used to control student spending and some that reward your child for good spending habits. As an example, a US student credit card without cash advance options is sometimes the best route to take. With this, your child would have the card for valid expenses but not be able to take money out at an ATM for fun spending, shopping, partying, etc. If your child ever needed cash, you would always have the option of sending a Western Union.
For the US student credit card with a rewards program, when the monthly payment is made on time or when certain purchases are made through participating companies, points would be earned. After a specific amount of points accumulates, the student would be rewarded with discounts or even cash back.
Although your child would have physical control of the card, a US student card also gives you some control. When this type of card is handled appropriately, the student learns responsibility in handling finances so once graduating from college and entering the working world, he or she would have respect for credit cards and finances overall. Keep in mind that some parents will allow the child to spend a set amount of money on fun things but with an agreement that he or she would work a part-time job to pay for such expenses.
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