Both private loans for college, as well as credit cards are issued (or not) based on an individual’s credit score and financial profile. As Federal student loans, grants and aid tend to not cover all college tuition and related expenses, most students rely on credit, often via a private student loan or student credit card.The most important thing to know here is that both of these types of debt MUST BE REPAID. The bottom line is that a student will be able to receive more funds through a private loan than through a credit card. Co-signers are key to both types as many students do not yet have a strong enough profile, or do not have the means to repay.
A tip: shop around and compare offers when seeking a private college loan or college credit card. Many offers for both financial products will likely come to you in the mail, so thos proned to impulse buys should not apply for the first loan or credit offer they receive. Take your time, involve the ‘rents, and carefully select the right loan or credit card which fits your own needs the best. Another tip: having a credit worthy co-signer can actually reduce your interest rates and help save money.