How to do changes in credit card for college students?

by on June 7, 2010

How to do changes in credit card for college students? With change in the rules and regulations of credit cards for college students, it will be harder for them to get hold of one. The new set of rules formulated is for the betterment of the students and their spending habits.

If a credit card applier is less than 21 years old, then he or she will have to produce income proofs showing to the issuers that they have a steady source of income. As an alternative to the income proof, when the applier is not working, then the parent or guardian has to vouch for the credit account of the college student.

If the parents are not willing to sign as consignors for their kid’s credit account, then the banks give the college student an option of a debit card.

However, this card too will help the student to build his or her credit. Another change in the credit card rules for students is the increase of interest rates and decrease in the credit limit. This change has been incorporated due to the fact that students being spend thrifts do not realize the outcome of their excessive spending. This resulted in hundreds of students covered in debts even before they moved out of college. In order to prevent this mishap, the issuers have taken an initiative to increase interest rates. Even after this stringent measure is put into force, the college students do not stop spending.

The credit built by the college students with their credit card issuers has a long to take them. If the credit is strong, they can hope to get a loan from the issuers to finance a car. The employers or companies who are willing to hire them may also look into the credit history of the student. For this purpose, the parents need to take the initiative of making the students understand the importance of using a credit card wisely.

They should clearly explain to them the pros and cons of a credit card. They should also explain them how credit building is important for the future. Once spoilt, the credit history takes a long and tedious process to be repaired. If your college student is earning, then advice him or her to open a savings account instead of opting for a credit account.

Tell them to pay of the credit balances on the due dates or better before that. Also make them understand the significance of budgeting and how preparing a budget of their expenses will be beneficial in the future.

One of the worst scenarios that arise while a student is having a credit card is when he or she spends ruthlessly on luxury items which are out of their budget. A student credit card holder must be careful about spending only on things which are necessary. Therefore, taking into consideration the spending habits of college students and the mishaps that have taken place, the credit card issuers have brought about a change in the card issuing system and made it more difficult for students to obtain a credit card and availing credit for existing card holders.

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