Student credit card enables the cardholder to pay the expenses through the money borrowed from the bank or financial institution. You can take this card from any reputed card company. The main idea behind using this credit card is to establish a good credit history. It is also the duty of the parents to make their college going children aware of the pros and cons of these credit cards through this simple and easy student credit guide.
Pros of Student Credit Card:
Through student credit card you can pay bills, shop, obtain funds for college expenses. You can make any kind of purchase with this card. If used properly and responsibly, students learn to become responsible towards paying their bills on time as well as it enables them to understand the essence of spending money, wisely. Using a student credit card, the student realizes the consequences of overspending and the benefit attained on making payments on time.
Cons of Student Credit Card:
This credit card may also take you on the road to financial troubles. If you use your card carelessly then you may find yourself in a huge debt. This not only makes it difficult to pay off your debts but also damages your credit history for the lifetime. If the bills are not paid on the time, the interest grows quickly.
Select the best Card Company:
Before applying for the student credit card, you should consider a few aspects to have a bright financial future. These includes rate of interest your account will be charged, schedule of school/college fees to pay, cash advance facility, and insurance offerings. You should also consider the credibility and the certification or previous records of the different credit card companies. You can check the reviews and feedbacks from their existing and previous clients.
Make sure to select a card that suits your needs and the other financial capabilities, as a student. As per the student credit guide, every student should be aware of the benefits and the limitations of holding such type of a credit card.
Not much but the points covered in this student credit guide will help students and their parents to obtain some beneficial information. It is also advised for parents to use the credit card for their child after they graduate. It will help them to focus on their career rather than establishing their credit history.