Financial assistance is a must for student pursuing a degree. Going to college involves more expenses and without financial back-up, it can be very difficult to go on. Student loans for college from commercial lenders are popular among college students. However, with the high interest rates of college student loans, most young people and parents prefer to apply for Federal Student loans.
Acquiring a student loan also involves risks. Statistics show that a significant percentage of bankruptcy cases are students who defaulted from their loan payments. Most of them were forced to declare bankruptcy and had to live with a derogatory remark in their personal credit reports for up to 7 years.
To avoid the risk of bad debt, some students choose to skip commercial loans and apply for student credit cards instead. Credit cards for students can provide the necessary support for emergency school expenses. As long as the card holder manages to submit his/her payments on time, there’s no need to worry about incurring bad credit.
Nevertheless, choosing the right credit card for student is no easy task. Many student credit cards today offer incredibly low interest rates to attract more customers. But take note that a low interest rate doesn’t guarantee that you’ve found the best deal. In order to make the right choice, a student must be able to distinguish between good deals and bad credit card deals.
What makes an ideal student credit card? Well, a low interest rate is great but aside from that, you’ll want to get a card with low maintenance costs and no hidden charges. Maintenance costs are fees that a cardholder must pay regularly to keep his/her account active. These costs include annual fee, transaction fees, balance transfer charge, late penalty fees, over-the-limit fees, etc.
Being on time in submitting credit card payments is very important. This rule doesn’t just apply for student credit card holders but for all credit card holders as well. Late payments not only put you at risk of bad debt, such a habit also puts your credit history in a bad light.
Obtaining multiple student loans wouldn’t be necessary with a student credit card. Should you emergency expenses arise, a student can use a credit card as payment even without cash. Yes, through responsible credit card use, a college student can afford to go through college without entirely depending on his/her student loan.
About the Author
Samantha Wilson is a consultant for managing credit cards and finding the best student loans. For years she has written student credit card articles that helps build student credit, and student loan help articles that can be used as guides to handle student loan debt.