Student Credit Cards
Student credit cards can sometimes be a necessity when young people begin their university studies. This may be particularly true if there is not much financial support coming from home. A credit card can help you make ends meet and be able to afford the high cost of college education. It is also a good time to start building a good credit history so that upon graduation, it will be easy for you to buy a car or a house.
Before you look for a plastic card to acquire, make sure that you know the difference between the regular credit cards and those that are specially designed for students like you. Following are some of the benefits of student credit cards.
• Minimal Requirements - It is to be expected that if you are getting your first card, you have not yet established a credit history. This will disqualify you from getting a traditional credit card. Credit cards for students are taking this into consideration and are more lenient when it comes to this requirement.
Some companies will just require you to have another member of your family to co-sign with you on the application form. This is to assure the credit card company that somebody else would cover for the debt in case you default on your payments. To avoid giving your family additional financial headaches, make sure that you are always updated on your payments.
• Lower Fees - Student credit cards usually waive annual fees and charge lower fees to make sure that you do not incur heavy debt on your first credit card. This is similar to the reduced fees offered to people who have shown poor payment history on their regular credit cards. The difference is that for students, it is intended for you to meet school needs.
If, in spite of the low interest charges you still fall into debt, you may try to get a balance transfer deal. In this arrangement, you will be allowed to pay your balance on fixed amounts for a certain number of months at no interest. However, since you may not have established a long enough payment history yet, you may be denied. You can ask your credit card company if they provide this service to be sure.
• Protective Spending Limits - Student credit cards provide a good learning experience on managing your own finances without incurring too much debt. Credit card issuers know this that is why in order to help you, they limit your ability to use your credit card by setting a lower spending limit compared to a regular credit card. This way, even if you overspend on school expenses, you will not end up incurring big debts that will take years for you to pay.
Using student credit cards to pay for school needs is a convenient way to go about your daily life in the university. Just remember to use it wisely and to always pay on time. Avoid payment defaults as they will only bring additional costs for you. Try to spend only on what you can afford to pay.