Entering college is often a time for new things. For students, this is their time to gain more independence in all aspects of life including financial independence. Have you thought about applying for a student credit card? If you haven’t this may be the best time to do so.
College credit cards give students the chance to open their own accounts without the need for a co-signer. This is the only time you can get approved for a non-secured credit card despite not having credit history. By the time you graduate, it would be a lot more difficult to get approved for a best deal credit card with no credit history to back you up.
Why the negative impression?
Some people feel that credit cards for students encourage spending. It is true that many young people got stuck in bad debt due to uncontrolled credit card use. However, bad credit is a result of poor or incorrect credit card usage.
Students who faced bad credit or bankruptcy did not exercise control in their spending. The truth is, a owning a college credit card has its advantages. If you know how to handle it correctly, you should be able to benefit.
What are the advantages of owning a student credit card?
Establishing a credit history as early as possible will strengthen your credit-worthiness in the future. If you have old credit history that shows positive remarks, you will surely impress prospective lenders, insurers, even landlords and prospective employers. By the time you graduate, you should be able to get a loan with the best rates, choose the apartment you want, and get hired for a job more easily.
A college credit card on hand is also great for emergencies. If you need to make a purchase for a school project but without cash, a student credit card can come in handy. Some credit cards for students offer discounts and bonuses as well.
How can I use my student credit card to my advantage?
How can you use your student credit card to your own benefit? The first rule of thumb is, watch your charges. Before charging anything to your card, make sure that it’s worth the purchase. See to it that you will be able to pay if off in full before your due date ends.
This is not the time to carry over balances from month to month. Since you’re still in school, you should use your credit card only for the most important things. Make it a goal to pay off your balances in full to avoid additional costs such as the APR and late penalty fees.
Yes, even with a student credit card, you can manage to keep out of bad debt. Practice self-discipline and hone your financial management skills.
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