Student Credit Cards

When a student gets ready to go off to college and they are at the initial enrollment many times an agent is available from the credit card companies to encourage and sell a credit card to the new student. Today with the economy being in such a bad state it has been determined that many college students are too high a risk for a student card. The quota that the credit card companies seek in this area has greatly dropped in order to cut back on the amount of credit that the lenders give.

The lenders are now more fearful of the risk that a new student may poise that is why the cards are now being issued to the parents instead. Many parents already have cards and the lenders can use the credit score and paying record of a familiar client before issuing new lines of credit. Most lenders prefer to know that the parent is backing the card preferably in their own name rather than that of the students.

This may be good for the lender but it does not help the student to build a credit score that they can use after graduation. The student may not be able to use the reward points because usually only the person who owns the credit card can use the points. Most parents do not like this idea because they want their student to be able to come home or make other trips by using the points earned by their student’s use of the credit card.