Summary
According to student loan provider Sallie Mae, about 57% of students have a credit card. Rules have changed in recent decades to provide more protections for students.
Dr. Preston Cherry, a member of the CNBC Financial Advisor Council, says paying back a credit card immediately is critical. Never carrying a balance allows a student to stay stress-free when it comes to paying off the card.
Interest rates for student credit cards tend to be higher than for a typical credit card. The interest rate for a student credit card can be as high as 29% in some cases.
A good credit score will also help you apply for new credit cards with better rewards. Students do not have to stop using a student credit card once they graduate. If an account is in good standing, it can be changed over to a regular credit card.
Secured credit card is a good option for applicants without a credit history or proof of income. With a secured credit cards, the applicant typically must pay a cash deposit.
