Student Credit Cards Are Part of Growing-up
Student Credit Cards Are the Gateway to Financial Responsibility
Those who are in college may find themselves being offered student credit cards. These cards can be very convenient in getting access to instant and quick cash, and give young individuals an opportunity to build credit and learn how to handle money responsibly. But these advantages come with a degree of peril.
A college student who doesn’t even have a job yet will need to learn to handle cash and when and when not to spend it, while living within his or her means.
A student will have to learn to pay bills promptly every month. The long-term use of a credit card will help a student build a credit score.
A high credit rating will be very useful when a student finishes college and wants to rent an apartment, or perhaps buy a vehicle.
The convenience that comes with a credit card is suited to the lifestyles of students.
They won’t have to carry cash or checks, items that can be easily lost. Whenever a student loses a credit card, the card provider can be contacted quickly and easily to have the card reported as missing and have all transactions using it canceled.
With a credit card, a student can, in the event of an emergency, get money right away.
But young people need to know the difference between a real emergency and just plain extravagance. And there are students who graduate from college and accumulate too much debt due to unwise credit-card use.
Ideally, purchases using a credit card should be limited only to necessities.
Student credit cards have special offers to entice students into signing up for accounts like rewards for purchased items by way of cash-backs and points. These rewards are then used to buy school supplies, books and plane or bus tickets.
The way the financial system is run nowadays, owning a credit card has practically become a necessity. But only through smart use of credit cards can we make these items work for us and not against us.
Credit cards are very convenient to use in buying and selling online. No cash is needed and unless you make a real blunder in transacting business, your money is safe.
Just about anybody can get a credit card. Your social status is not important. You can be employed, you can be unemployed or a student, you may not have had a credit card before — you can still apply for a card and get one.
But with several hundreds of credit cards out there, it can very easily get confusing, and not just for students. You can apply personally at any institution that offers credit cards, or you can opt to do it online.
For students, it doesn’t matter whether you are a high school or college student. Having no credit history is not a hindrance. Some companies won’t even run a check out your credit.
These student credit cards usually require a small almost token deposit. They also come with rather low starting credit balance. There are restrictions too but these are meant to make transactions go smoothly.
With no employment, no source of income, and zero credit history, one way to increase your chances of having your credit-card application approved is to get a cosigner. It could be one of your parents, a close friend or relative.
The important thing is to have someone you trust support you with his or her credit.
The cosigner is actually taking a risk by agreeing to this arrangement. It is the bank or credit provider’s way to secure your account. Should you fall behind on monthly or interest payments, or even default, there is someone the bank or credit provider can get the money you owe them from.
But as long as credit cardholders act responsibly, student credit cards will be very useful and function smoothly.
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