College goers may make the most of student credit cards, as they get an opportunity to build their credit history through them. Collegians need to understand well the functionality of such credit cards. These credit cards put you in a better position to manage your personal finances. If you do not know how to use such cards, you may attract bad debt to your name. It is advisable you, as a student, read the terms and conditions carefully, while applying for these types of credit cards.
Check expiry date for Annual Percentage Rates (APRs) as fixed by the credit card issuer. Collegians need to consider building their credit history as soon they join a college. It is important you have a good credit history for making important purchases. If the credit standing is bad, it may pose you a problem, while purchasing house and getting approved for loans. Further, you may even face problems, while finding a job for livelihood.
Hence, before you apply for student credit cards, develop the ability to manage finances tactfully.
Nature of Cards:
Credit card issuers market such cards for the betterment of students. The cards come in different styles. Often, the rate of APR is zero as an introductory offer to collegians. You may expect facilities such as cash back or score of ‘points’ to improve your credit over the use of such cards. It is necessary you read the contract carefully for knowing how far you can benefit by using credit cards.
The initial 0% APR on such credit cards is a limited period offer. Immediately after six months, the APR may inflate to around 17-18%. If your college budget is limited, then in the first six months, you may clear all the debts through such credit cards. They are a support to those, who do not have instant cash with them in times of need. Many a time, collegians are not able to do away with debts in life, and the debts go on increasing over period.
Academic needs are many. Collegians unavoidably have to spend on textbooks, cafeteria and dorm. Here if your income is low, you fall short of cash to address all those needs. Collegians may derive as many benefits from student credit cards by performing well in their academic years of studies. Such credit cards work as important identity proofs, if there is an employment or credit check.
The cards speak of your responsibility toward efficient handling of finances. They even prove beneficial, while applying for home or car loans. The key to handling such credit cards well is to have a grip over your expenses. Collegians may do this by avoiding frequent visits to clubs and making unnecessary purchases. By doing this, you stay away from potential debts and heavy APRs.
Student credit cards are the best for those aspiring collegians, who wish to make it big in the world of credit. Credit cards take care of all your financial worries provided you do not misuse or overuse them.
All it takes on the part of collegians is developing a sense of financial responsibility as for the proper use of credit cards. These cards offer the much-needed help, when it comes to making important purchases.
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