Credit card application, a new world
Student credit cards will also introduce the young adult to the concept of interest charges and late payment fees and how rapidly they can accumulate on unpaid 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. Wise lenders view college students as a bit of a risk to start out and will typically issue student credit cards with a low borrowing limit and higher interest rate, until the student establishes a good credit history. That good credit rating will go a long way after graduation when the student decides to buy that first car or rent that first apartment. Many lenders bombard campus bound college students with offers for student credit cards.