Junior is going off to college. You know he is fiscally responsible and a good kid. But some rotten apples can occasionally taint even the cream of the crop. It is better to acknowledge that fact and arm Junior with a credit card as a lifeline in an emergency situation. The maximum limit for student credit cards to start off with is generally $500 and can be set up by two different authorities - you as the student's parents and the credit card issuing company.
Perhaps you are going to entrust Junior with a credit card that is linked to your existing account. You can call the credit card provider and have them cap the maximum limit on that student credit card. You will be able to have full access to the account information, control the limit and be notified if an out of the ordinary charge attempt is being made. The maximum limit for this student credit card would be entirely up to you.
Credit card companies are always looking for new customers and ways to increase their profit margin. College students are the perfect demographic. Not only are they the legal age for becoming cardholders, but also many of them have yet to master their real live budgets and the card issuers can make a hefty profit off of their mistakes. The maximum limits for those cards are at the discretion of the card issuer.
The maximum limit for student credit cards would appear in the solicitation material from the issuing credit card company. The amount differs from student to student and is not etched in stone. If, however, a student has a clean credit history and no marks on their permanent record, they will typically be offered the highest maximum available.
The maximum limit for student credit cards is the debt ceiling amount for which the cardholder has been approved. Although some students handle the situation responsibly, many risk building a substantial amount of debt before they even graduate college and get a full time job. Make sure to educate your child on money management skills before providing them with a student credit card. That way, they may think twice before hitting their maximum student credit card limit.
