With the CARD Act implementation date looming, many changes will be set on the way issuers are able to do things. Under the new law, those that are under the age of 21 will soon be required to have a co-signer, pass a financial literacy course, or show that they have the ability to re-pay amounts that are borrowed. While many students will be able to get a traditional credit card there will still be others that will not. For those that cannot, it look like an alternative will be needed and such an alternatives may be in the form of either a secured credit card or that of prepaid.
As the type of plastic students would probably migrate toward most, secured credit cards have been labeled as the best alternative. These types of cards for the most part are like any other traditional student credit card with the only difference being that a security deposit must first be put into an account. While these cards may not have the same great features of other cards; they do help build credit history, which above all is considered the most important aspect.
The other option that an increasingly growing number of students seem to enjoy comes in the form of a prepaid card. While it may not have been even considered an option in the past; a growing number of students and parents have now started to utilize it because of their opinions on debt. Not only that but in many cases prepaid cards, now offers some of the features that we see with credit cards. Great examples of this are things such as rewards, which include things such as discounts on purchases, cash back, and more. For students this could be something that is important as they try not to worry too much on their finances and more on their grades.
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