India Wednesday


College life is one of the most significant periods of life. It should be made as efficient as possible for students. Going to college is a significant life decision, so is applying for a credit card. You can use your student card at gas stations, restaurants, and more to start building your credit. Student credit cards can be a double-edged sword. If you use them the right way, they can help give you a financial leg up over your peers by the time you graduate. But if you use them incorrectly, they can end up hurting you in the long run. 

Student credit cards often initially start with low, manageable credit limits. This allows college students who are new to credit the ability to learn how to use the card and make payments on a small scale. This can help prevent overspending or splurging on unnecessary items. One of the primary reasons to get a credit card for college is to begin learning good credit habits. Credit cards can be a great start for students to learn how to manage their money and a monthly budget while away from home for the first time.

Many rental applications require a credit check so that landlords can review the applicant’s credit history.  Here again, student credit card use with a strong track record of repayment can help build a credit history and identify you as a responsible young adult and potential good tenant, helping to strengthen your rental application. When you’re ready to buy a home, a strong credit history will also be key to getting a mortgage.

An important benefit of having a credit card in college is that you’ll have money available if or when an emergency arises. This can bring comfort to parents knowing that if something were to happen, their child would have access to funds in their time of need. Whether you need money for emergency health care, car repairs, or a trip, your credit card can be a lifesaver.

Whether for college students or retirees, credit cards are almost synonymous with convenience. From the ballooning costs of textbooks to class enrichment event fees, having a card can make an expense a minor consideration in making a studious decision. Insurance companies will also review your credit report to see how reliable and responsible you are – the lower your score, the higher your insurance rates will likely be. 

A credit card can help you build credit depending on how you use it. To build a positive credit history with a credit card, you need to make at least the minimum payment on time every month. You should also only buy what you can afford to pay back and not exceed your credit limit. A positive credit history can help you down the road get a lower interest rate when you buy a house or car, which for these types of large dollar purchases, can translate into thousands of dollars in interest over the lifetime of a loan. Also, with a positive credit history, you will have access to the most loan and credit card products and the best terms for those products. You also might qualify for lower premiums on car insurance and be more likely to be approved for an apartment rental. If you need to rent an apartment and do not have a guarantor, landlords will probably look at your credit history before renting you an apartment. Here is more information on how to build credit.

As some may know, carrying large amounts of cash, or even a debit card, isn’t always safe. There’s a risk of the money being lost or stolen, often with little chance of recovery. Cash is typically better off left in your bank account. Carrying a credit card, on the other hand, allows your money to remain safe, secure, and protected. If your credit card is stolen, you won’t be held liable for any purchases you didn’t make. It’s important to always monitor your credit card statements for any suspicious activity. This can typically be done by accessing your account via the website or mobile app of your credit card issuer. If you detect any unauthorised activity on your credit card, report it immediately. A new credit card will be provided to you if the card was lost or stolen, and the account was compromised.

Overall, there are many benefits to getting a student credit card in college. However, it takes an excellent cardholder to reap the full benefits of having a credit card. Make sure you read and follow the terms and conditions of your credit card account. This way, you’ll continue to budget and manage your money each month to avoid late payments, interest rates, and avoidable fees.


There is no comments.

Cinque Terre

Manya Arora