Inside track on Credit Cards for College Students
Posted at by CreditWiz on category CreditAre you a student pursuing a particular course while attending college? How do you pay for your college expenditures? Surely you might be purchasing gifts for your loved ones or gifting your friends on their birthdays or other occasions. Also you will need to get other commodities similar to 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 lots of reasons why you should have a credit card for young students only for the benefits they provide.
Benefits of Credit Cards for College Students
Credit cards do away with transporting a lot of money in your wallet, give insurance towards purchases, enable you to shop online, plus they prove to be a kind of cushion in case of any crisis situations. There are many companies giving credit cards especially custom-made for college students. A lot of the companies have their kiosks and also stalls at college campuses advertising their products and also providing card details to the students.
Credit cards improve a credit history for students. After graduation, a good credit history can certainly help finance expenses for purchasing a whole new apartment or maybe a new car. This is because businesses often look at the review of the credit report just before allotting loans to get a house or perhaps a car. Hence a favorable credit history may make availing a loan relatively easier. You ought to have a clean credit history to get the loans sanctioned. In case the credit report includes a lot of unpaid bill summaries then it becomes tough to avail a good loan and other associated advantages.
Down sides of a Student Credit Card
Even so credit cards also have their drawbacks. They carry high finance charges for past due bills at the end of the month. These finance charges can be as high as 20%. Furthermore, there are yearly membership fees that range anywhere between $25 and $100. In addition, failing to pay expenses on time can cause high interest levels.
Hence it is better to buy a credit card for college students only when you’ve got the capability to pay for all of the finance charges and also the bill amount in time. Not paying finance charges and also the unpaid bill amounts on time can cause suspension of services and also the student can get a bad credit score report.
Tips for Choosing Student Credit Cards
You need to be aware of some basic rules for purchasing a college student credit card.
-First, read all of the conditions cautiously before signing on the dotted line.
-Get answers about how much monthly interest the card holds along with the monthly interest for cash advances.
-Study the penalties or interest levels to be paid in case the bills aren’t paid on time.
-It is also safer to use a debit card rather than a credit card. This is because with a debit card, the amount is deducted from the account where finances are currently deposited from the start. Hence subscribing to a debit card makes sure that you can not spend more than the money you’ve got in your account.
-You should use a credit card only when you are certain that you’ll be able to pay the debts in time. As far as possible, cash ought to be used for buying items. You need to use a credit card only for emergency purchases.
-It is better to get just one card from a firm just after comparing the services provided by all businesses. Do not get two or three credits cards from various companies as it leads to a lot of hassles like remembering the payment dates for paying bills, extravagant expenses, etc.
Hence, as mentioned before, students should purchase credit cards only when they’ve got the ability to pay all bills in time and also exercise control in their spending habits. Student credit cards help teach teens how to deal with credit. Additionally, credit cards for college students permit them to build a good credit history if a student credit card is used in moderation.
For more information on how to distinguish between Credit Cards For Univeristy Students, Kim Stevens recommends that you check out CreditCardAssist.com