The student credit card is one tool that can spell a new fresh beginning of credit for a student or that can cause him or her to fall into a deep chasm of debts. Banks as well as other financial institutions have lots of offers to attract the student community. Things like zero annual fees, cash back offers, as well as low rates of interest are attractive enough to get any student hooked.

Usually, student credit cards have a lower credit limit. The reason is that often times students fall into the trap of overspending and hence, big debts. Besides, they do not have a credit rating, per say and hence, their rates of interest are also quite high. Besides, most student credit cards require parental consent to exceed their credit limit.

Nevertheless, the student credit card does offer some sort of financial freedom to the student. They can have their say in the spending decisions and this can also be a first test where they can prove their ability to manage their finances well.

This is also a step to understand that you have limits to your credit. This is also a fresh start for a student to build his or her credit as an individual.

On the other hand, this can also be a pitfall for many students. The reason is that easy money seems to be spent more easily. Series of impulsive purchases and not making regular repayments often lands the irresponsible student into an awkward financial situation right at the start of their independent life.

Student credit cards have a lot to offer also. They have several great offers such as a zero percent rate of interest for the initial six months. This can be really great. Besides they also have zero percent liability for any unauthorized charges to their card. This means that in case somebody else uses their card without their permission they will not be held responsible.

Most of these student credit cards also offer reward schemes involving points. Such schemes allow you to collect points when you make a purchase. When you have collected some specific points, you will be able to exchange them for some gifts or cash as per the conditions of the credit card company. You can get anything from CDs, DVDs, movie tickets to many more gifts.

Then there are other rewards such as extra points for shopping at some specific stores, video rentals, record stores, book stores, restaurants and many other places that students often frequent.

Thus, the student credit card has a lot to offer and it depends upon the student to use it or to abuse it.