College student Credit Cards: Types, How to get, Advantages and disadvantages

Nowadays, credit cards for students have become quite popular as they enable them to get the benefits of cards with low interest rates. In fact, some cards do not really charge any type of fees. Independent of the benefits, the cards also help the students to create credit. Nowadays, you can find numerous such cards to pick from, such as for instance secured, unsecured, merchandise, and prepaid cards. But, you must always choose the one which suits you the most. Along side, it’s also advisable to remember that credit cards come along with lots of financial responsibilities. Therefore, you must use them wisely.

Unsecured

It is a type of card that will not require any cash deposit make purchases from an easy distinct credit. This sort of card for student offer limited or normal credit, but is the most preferred selection for the students. In fact, it’s been designed in ways to simply help student to boost their credit profile. One more good aspect about this kind of card is so it offers 1% cash back as an advantage amount on each and every purchase you make through it. Additionally, the card does not come along with any type of annual membership fee. At the top of this, it even has an extra 25% reward once the monthly bill is cleared on time. You can redeem the reward via a check or directly into your account. Moreover, this kind of card does not put any limit to the quantity of money it’s possible to earn.

Secured

This really is a kind of card that fetches money from an account shared by your cardholder. Reliable and good secured cards always submit a depth of your payment record to credit bureaus in order to permit you to build credit. The facts of your payment record are submitted to three chief credit bureaus and email or text messages are used to send monthly payment reminders. This sort of card usually charges around 20% of annual percentage rate (APR) on purchases, but does not charge any annual membership fees.

Prepaid

Prepaid cards are very just like a secured one and it also includes a checking account. As its name suggests, in this kind of card you spend the funds that you deposit in to the card. For this reason, the monthly fee associated with this particular card is fairly nominal.

Important Guidelines To Help College Students To Get A Credit Card

In earlier days, it was very easy for college students to get credit cards as there have been many sources available. There were a lot of companies who’d offer free cards to students just by filling applications. Unfortunately, in February 2009, Credit Card Act of 2009 came into existence and made very strict new rules regarding students to qualify for a card. Now, the guidelines have totally changed and are so hard that students find it hard to qualify. Before you go to obtain a card, students are supposed to understand many reasons for the qualification and related stuff, following are few guidelines, you can have a look.

· Firstly, study about credit cards, how it works and such other things. Further, you even need to know the due dates, what are the billing procedures, late penalties, limit fees, how to raise your interest, ways in order to avoid any additional charges and a number of other card related queries.

Comparison of different types of card schemes and offers for college students can also be an essential task. You would find dozens of card companies offering cards to college going students. As no two companies are similar, you’d find each company with various pair of rules. Interest rates, benefits and charges of every company differ with another. You must occupy the responsibility of selecting one company that suits your requirements. Try to look for benefits yourself and try to avoid additional costs using some benefits.

If you may not have sufficient credit, then you will get a different form of bank card known as Subprime credit card. However, they are many additional charges on most of these costs 상품권 현금화 . In earlier days of such card, there was around 75% of limit on credit cards, now it is 25%. You can see there’s lots of difference.

While selecting a card, allow it to be a point out check whether your company is reporting to the big credit bureaus or not. Equifax, TransUnion and Experian will be the three very big bureaus which will assist you to in enhancing the credit score at a later stage.

Every time a student enters his/her college premises, he or she’s flooded with offers from credit cards companies. These cards for students build a sense of responsibility, cause them to become comfortable and help them to boost their credit as well. There are numerous benefits of owning such cards; nevertheless a student needs to be careful in handling a credit card as he/she has to know about the debt factors of a credit card. We’ve laid down some benefits of having a credit card with students; refer the next points to understand about it.

Following the introduction of new laws regarding student credit cards, there have been many limitations for students to qualify for a credit card. However, according for some sources it is famous that students of today are carrying lot of debts because of the bank card facility. These debts even carry forward after the student leaves college. Besides having many advantages, bank card for student carries lots of disadvantages too; let us have a review of them as follows.

Way too many cards in addition to debtors: In accordance with a survey in 2009 done by Sallie Mae, it was found that students are wholly influenced by a credit card nowadays that is generally not very a great thing. It is a known undeniable fact that about 84% of college students are experiencing the benefit of getting at the least one bank card; while the common is about 4.6 cards. Clearly, it indicates that if a student is having one card, he can spend as much as $5000, and similarly he can spend as much as $15000 with 3 credit cards. As we all know that interest rates are blooming nowadays, it is quite obvious the debt amount will increase drastically.

Excessive balances: This is actually the most problematic situation that came across Sallie Mae; it was that $3173 was the mean balance of credit cards being carried by college students. It was shocking to understand this figure was the greatest among all other figures. This implies that students aren’t using the cards for convenience purpose; instead they are misusing the given advantage and are going beyond their limits.

These cards for students in addition to loans: This really is also another burdening disadvantage as the debt of the students is carried forward to the coming years which become a loan debt. It is very sad that the students need certainly to take the responsibility of paying it right after their commencement of careers. In accordance with Sallie Mae’s study in 2009, 23% of the students remained unanswered when asked about their loan payments, whilst the answers of the other 77% had no experience of the debt loan.

Shazaib Khatri134

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