Lowdown on Credit Cards for College Students
Are you a student pursuing a specific course while attending college? How do you invest in your college expenditures? Certainly you may be buying gifts for the loved ones or gifting your friends on their birthdays or any other events. Also you should get other goods like T-shirts, books, and shoes from stores. Student credit cards can prove to be a boon for high school as well as college going students. There are various good reasons to have a credit card for college kids exclusively for the advantages that they provide.
Important things about Credit Cards for College Students
Credit cards do away with carrying a lot of cash in your wallet, give insurance towards purchases, allow you to shop online, plus they prove to be a sort of cushion in the event of any urgent matters. There are several companies offering credit cards especially custom-made for young students. Almost all of the companies have their kiosks as well as stalls at college campuses advertising their products as well as providing card details towards the students.
Credit cards improve a credit history for students. After graduation, a good credit history might help finance expenses for purchasing a brand new apartment or maybe a new car. It is because firms often look at the review of the credit report ahead of allotting loans for a house or perhaps a car. Hence a good credit history could make availing a loan fairly easier. You should have a clean credit history to get the loans sanctioned. In case the credit report has a lot of unpaid bill summaries then it becomes challenging to acquire a good loan and other connected rewards.
Down sides of a Student Credit Card
Nonetheless credit cards have their down sides. They have high finance charges for unpaid bills at the end of the month. These finance fees is often as high as 20%. Additionally, there are annually membership fees which range between $25 and $100. Furthermore, not paying expenses punctually can cause quite high rates of interest.
Hence it is best to purchase a credit card for college students only when you’ve got the capability to pay all of the finance charges and the bill amount on time. Not having to pay finance charges and the unpaid bill amounts punctually can lead to suspension of services and the student can get a bad credit score report.
Strategies for Choosing Student Credit Cards
You should be mindful of some fundamental rules for purchasing a college student credit card.
-First, read all of the conditions cautiously before signing the contract.
-Get answers about how precisely much monthly interest the card carries along with the monthly interest for cash advances.
-Study the penalties or rates of interest to be paid if the bills aren’t paid punctually.
-It is also better to use a debit card as opposed to a credit card. It is because with a debit card, the amount is deducted from the account exactly where funds are currently deposited from the start. Therefore subscribing to a debit card makes certain that you can’t spend more than the money you have in your account.
-You need to use a credit card only when you are sure that you’ll be able to pay the debts on time. As far as possible, cash must be employed for buying items. You should use a credit card only for emergency acquisitions.
-It is better to get only one card from a business immediately after comparing the services supplied by just about all firms. Don’t get two or three credits cards from different businesses as it results in a lot of hassles just like remembering the due dates for paying the bills, extravagant costs, etc.
Hence, as mentioned before, students should buy credit cards only when they have the capacity to pay all bills on time and also exercise control in their spending habits. Student credit cards help teach teens how to deal with credit. Also, credit cards for college students allow them to build a good credit history if a student credit card is used moderately.