Ask Nelson is a FREE research tool for British Financial Information

UK LOANS, MORTGAGES AND FINANCE INFORMATION

SECURED LOAN FINANCE STATUS & NON STATUS LOANS
FREE PHONE
0800 169 5297 (Homeowners only please)

Go4aMortgage

Commercial
Residential
Buy To Let
Re-mortgages
NON Status & CCJ
Self Build Mortgage

NEED MORE INFORMATION?

BANKING	PENSION	MORTGAGE
Banking Online Banking Business Banking Banking Loan Offshore Banking Building Societies Cash ISAs Current Accounts Savings Accounts Alt Search Terms	Annuity Retirement Planning Personal Pensions Stakeholder Pensions Pension Transfers SIPPS Pension Advice Pension Company Pension Scheme Alt Search Terms	Mortgages Adverse Credit Buy to Let Equity Release Mortgages Mortgages Overseas Self Certification Mortgages Remortgage Mortgage Brokers Mortgage Providers Alt Search Terms
UK Financial Services Sub-categories: Accounting \| Banks \| Building Societies \| Corporate Finance \| Credit Services \| Currency Services \| Debt Collection \| Directories \| Factoring \| Financial Consultants \| Fund Management \| Independent Financial Advisors \| Information Services \| Insurance \| Leasing \| Merchant Services \| Offshore Services \| Organisations \| Personal Finance \| Publications \| Regulation \| Socially Responsible Investment \| Stockbrokers \| Taxation Article Index: 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8

Student Credit Card or Prepaid Debit - Which One is Best?

By: Robert Alan

Student credit cards come in a variety of forms. But, there are two primary forms in which a student credit card can be found. The first is an unsecured student credit card while the other is a prepaid debit card. Understanding the differences and the pros and cons of each will help you to better determine which is best for you.

The Unsecured Student Credit Card

An unsecured student credit card is like a traditional credit card. With this type of student credit card, the college student (or high school student, as the case may be) receives a line of credit. Typically, student credit cards keep low lines of credit of about $500 to $1,000. This is partly because those applying for student credit cards typically have very little credit history and do not qualify for higher credit limits. The lower limit is also in place in order to help prevent the college student from accruing an insurmountable debt.

Not all credit cards for college students have such a low credit limit. So, if you require a student credit card with a larger limit, you might want to shop around. Similarly, if you want the restriction of a small credit limit in order to keep yourself under control when it comes to spending, be sure to seek a student credit card with a low credit limit.

The Student Prepaid Debit Card

A student prepaid debit card is a card that looks like a credit card and is accepted everywhere a credit card is accepted, but has one major difference: a line of credit is not extended to the cardholder. In order to make purchases with a student prepaid debit card, money needs to be placed on the card first. This money can come from a variety of sources. The student can place the funds on the card him or herself. Or, the student's parents can choose to add money to the card. In fact, parents can generally set it up so a portion of their checks from work is added to the debit card each pay period.

Pros and Cons of Student Credit Cards

Student credit cards can go a long way in helping to establish a student's credit history. In addition, a student who does not have money to pay up front can certainly benefit from being able to take out small loans with the credit card in order to make purchases. Another perk is the fact that the student doesn't have to wait for money to be added to the card before using it. So long as there is credit available on the card, the student can spend as much as he or she wants.

On the other hand, a student credit card increases the chances of creating a poor credit history. If the student accumulates a debt he or she is unable to pay, or if the student is late making monthly payments, it can reflect poorly on the credit reports. In addition, many students are already starting their adult lives in debt as they pay off college loans. Adding more debt from a credit card can be overwhelming and seem impossible to overcome.

Pros and Cons of a Student Prepaid Debit Card

A student prepaid debit card makes it easier for a student's parents to keep track of college expenses and to monitor the student's spending. In addition, there is no risk of destroying a credit history that has yet to be created because the student cannot spend more than what is placed on the student prepaid credit card. Many of these cards also report to credit bureaus, which helps in building a positive credit history.

Unfortunately, prepaid credit cards generally have many more fees than credit cards for college students. In fact, there usually are no fees associated with credit cards. Debit cards, on the other hand, often have an application fee and an annual fee. There are also fees added every time more money is placed on the card. All of these fees can easily add up to hundreds of dollars each year. When it comes to choosing which is right for you, it is really necessary to evaluate your own needs and spending habits.

For more on the basics of student credit card offers, Robert Alan recommends that you visit CreditCardAssist.com.

This article is free for republishing

Article Source: http://www.articlealley.com

RSS integration by RSSinclude

Go4TechInfo.com
Main Category:
Technology
Sub-categories:
Acoustics, Ultrasound and Vibration
Aerospace Engineering
Automotive Engineering
Biomedical Engineering
Chemical Engineering
Civil Engineering
Computational Engineering
Conferences and Events
Cryotechnology News
Cybernetics News
Electrical Engineering
Electronics
Energy
Engineering News
Food Science
Industrial Engineering
Invention and Innovation
Lighting Inovations
Manufacturing Technology
Materials in Engineering
Mechanical Engineering
Metallurgy News
Metrology Links
Military Science
Mining Technology
Nanotechnology News
Professional Exams
Pyrotechnics Research
Quality Engineering
Reliability Engineering
Safety Engineering
Sanitary Engineering
Science Directories
Science Organizations
Software for Engineering
Space Travel and News
Structural Engineering
Technology Academia
Technology Education
Television Development
Transportation Research
Welding
Popular Search Terms
1 - 2 - 3 - 4 - 5 - 6 - 7
Article Index 1 - 2

CLICK HERE!

Travel Options
HOTEL + AIR | HOTEL + AIR + CAR

AskVicky - AskAnn's Best Mate!

Jack at Sea - an online cruise 7 holiday diary

Blog/Diary Events 15 to 26 Jan 06 - New York to Rio de Janeiro
The pages recording the "Shenanigans" and controversy of the first leg of our voyage.
Blog/Diary Events 27 Jan to 7 Feb - Rio to Valparaiso
Happier times, great pictures, finally 'round the Horn, some funny stories along the way.
Blog/Diary Events 8 to 22 Feb - Valparaiso to Los Angeles
A sad tale of sickness and quarantine with some memorable tours and a "cunning plan"...
Using the Time
Research at Sea - An amazing collection of useful links and research topics.
Reading Articles at Sea
Music
1 - 2 - 3 - 4 - 5
Travel & Leisure
1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10

1st4Capital UK Loans

Homeowners
Non Homeowners

Bad credit history
CCJ's or Mortgage

NEED MORE INFORMATION?

Return to Index

� The information on this page has been gathered from various sources.
Where possible, AskNelson links back to the original sources.

NO LIABILITY WILL BE ACCEPTED FOR ANY ACTIONS CARRIED OUT IN RESPONSE TO ANY INFORMATION DISPLAYED BY WEB SITES LINKED TO BY AskNelson. YOU SHOULD ALWAYS SEEK PROFESSIONAL ADVICE BEFORE MAKING ANY FINANCIAL DECISIONS.

SECURED LOAN FINANCE STATUS & NON STATUS LOANS FREE PHONE 0800 169 5297 (Homeowners only please)

Student Credit Card or Prepaid Debit - Which One is Best?

SECURED LOAN FINANCE STATUS & NON STATUS LOANS
FREE PHONE
0800 169 5297 (Homeowners only please)