A Guide to Student Credit Cards

A Guide to Student Credit Cards

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A Guide to Student Credit Cards

What is a Student Credit Card?

Student Credit Cards are financial instruments issued to students. As a result, the respective terms and conditions within the structure of Student Credit Cards, including the determination of credit limits, scheduled repayment, interest, and Annual Percentage Rates (APR) will typically be specific to credit histories and scores belonging to students.

What is Student Credit?

Student Credit is defined as both the credit history and credit scores belonging to students. However, the notion of a ‘student’ is rarely uniform. Student Credit Cards can be specific to a vast expanse of students, ranging from High School Students to Graduate School Students.

A primary classification of student credit is latent within the fact that a majority of students are considered to possess credit scores classified as ‘low’ by the Fair, Isaacs, & Co. (FICO) credit ratings score. However, this is not to say that individual students have undergone financial infractions. A determining factor of individual credit scores relies heavily on credit history.

Due to the fact that students are classified to be younger in their respective ages, they have not had the opportunity to cultivate credit history through long-term ownership of a credit card. As a result, credit institutions may associate the classification of ‘no credit’ with ‘fair’ or ‘low’ credit.

In order to improve individual credit, the prompt repayment, responsible usage, and the compliance with terms of service will typically result in increased credit limits and raised credit scores.

Credit Score Analysis with regard to the Application for Student Credit Cards


Upon applying for a Student Credit Card, both the credit score, as well as the credit rating, belonging to the individual applicant will undergo analysis and assessment from the applicable lending institution. The following may be applicable to the approval process of a Student Credit Card:

Credit Score and Credit History Associated with Student Credit Cards

According to the gradient listed within the Fair, Isaacs, & Co. (FICO) credit ratings analysis, the following is applicable to individual credit ratings with regard to the terms and conditions listed within Student Credit Cards. The bulk of students are classified within the ‘fair’ and ‘low’ classification.

Credit scores classified as ‘excellent’ will typically range from 850 (the maximum score) to 740.

Credit scores classified as ‘good’ or ‘very good’ will typically range from 739 to 700.

Credit scores classified as ‘fair’ or ‘average’ will typically range from 699 to 620.

Credit scores classified as ‘low’ will typically range from 619 to 580.

Credit scores classified as ‘poor’ will typically range from 579 to 300 (the minimum score).

Student Credit Cards Standards and Practices

The following details are inherent within the financial structure and legal ideology of Student Credit Cards:

Student Credit Cards Annual Percentage Rate (APR)

The Annual Percentage Rate is a form of credit card interest defined as an expressed and established percentage of the gross value of Student Credit Cards. APR is considered to be a compensatory method undertaken by the credit institution as a result of furnishing an individual with a credit card. 

The APR is added to the full amount of repayment that is required for the satisfaction of the balance of Student Credit Cards. An APR designated to Student Credit Cards is typically higher than the median APR designated for credit cards issued to those with higher credit scores.

Limits of Credit Cards for Student Credit Cards 

Credit limits implicit within Student Credit Cards are defined as finite, monetary amounts of credit that may be undertaken by individuals in possession of Student Credit Cards. Students are advised to discuss any financial commitments with trusted parties or financial institutions.


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