Benefits of Acquiring Credit Cards For Students

Many people will agree that using credit cards is the most convenient way to buy things or make payments. However for students, using a credit card should be first and foremost, all about building good credit history.

What are the benefits of using student credit cards? If you are a college student, why should you be interested in owning your first credit card? If you are a parent, why should you encourage your kids to apply for one?

Building Credit History with Student Credit Cards

The best time to apply for an unsecured credit card is while you are still a student. If you are under 21 years old, ask your parent or a friend with good credit rating to co-sign for you since it is now a requirement under the New Credit Card Law. On the other hand, if you can present proof that you are making your own living, then you can get approved for a student first credit card even without a co-signer.

Using a student credit card is an essential step in building your personal credit history as preparation for the coming years. Why should you strive to build early credit history? When you graduate from college, you will, sooner or later need to obtain a loan – be it a car loan, a personal loan, or a mortgage loan. When that time comes, having an impressive credit history will surely work to your advantage.

Aside from the assurance that your loan application will get approved, lenders will be confident to give you better interest rates and more flexible repayment terms based upon your credit standing. On the contrary, if you do not have credit history, you may find it more difficult to get approved for the best loan deals in the market.

Aside from creditors, employers and landlords will also be interested in what your credit report reveals. If you have good credit, you can choose to rent any apartment you like without worrying about getting rejected. For job seekers, an impressive credit score can be one of your strongest points that will separate you from other applicants.

Good Financial Skills Start Early

Owning a credit card while in high school or in college can teach young people about responsibility and strategy while practicing financial independence. Parents play a big role in providing support and advice for young credit cardholders. How?

Parents must assist their kids in making the right credit card choice. Students must also understand how their credit card use affects their personal credit history. When used correctly, having a student credit card is an easy way to build solid credit. Nevertheless, students must always keep in mind the possible consequences if they fail to exercise responsibility.

About the Author

Samantha Wilson is a consultant for credit cards for students. For years she has written student credit card articles that would help build student credit.

Copyright 2010

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