If you’re a student, you may be considering applying for a student credit card. After all, they can feel like a sort of rite of passage on your way to financial independence. But are student credit cards really a good idea, or might they get you into more trouble than they’re worth?

What are Student Credit Cards?

Student credit cards are cards offering special perks or requirements for students (generally university students over the age of 18). You’ll not only have to prove that you have an income source and / or savings, but you’ll also have to show that you’re enrolled in school when you apply.

Pros of Student Credit Cards

When you’re in school, student credit cards can offer some advantages over other credit cards, including:

• Easier or shorter applications
• Lower income requirements (knowing students usually have part-time jobs)
• Lower credit limits (you may not consider it a perk, but it can help you avoid getting into too much debt in school)
• Rewards tailored to students (such as gift cards and merchandise)

While credit cards aren’t easy for you to obtain as a student, especially as credit card companies are being more cautious about lending risks amidst economic concerns, they can still be easier to apply for and get than other credit cards. That doesn’t mean they’re automatically the best option for you though. Also consider the downsides.

Cons of Student Credit Cards

Because you’ll have a limited income and credit history as a student, you may be faced with requirements not faced by applicants for more traditional credit cards. Some of the less than ideal aspects of student credit cards include:

• Enrolment requirements in an accredited school (often you must be a full-time student to qualify for student credit cards)
• Co-signer requirements (a parent or guardian basically guarantees the debt, and becomes responsible if you don’t pay your bills)
• High interest rates (or at least higher than traditional low interest credit cards like the St. George Vertigo MasterCard)
• Increased debt (especially if you’re using student loans already to fund your education)
• Banking requirements (you may be required to have a savings account with the bank issuing the credit card in order to be considered)

Like with any other type of credit card, you have choices to make. How much of a limit do you really need? Is the higher interest worth it to have your own card instead of being listed as a secondary cardholder on your parents’ card? Is your income low enough that student credit cards are your only option while in school, or do you earn enough to qualify for a more traditional low rate card on your own? Always compare terms carefully before applying, and remember that any application for a credit card will remain on your credit file for five years. Be selective, and try to choose a first credit card that will grow with you over time.