The Ups And Downs Of Student Credit Cards
For a lot of kids, college is a milestone simply because it is the time when they are finally given free rein to do whatever they want. No longer kids; college students are usually left to make decisions on their own, including whether or not to get student credit cards.
In the past few years, student credit cards have become immensely popular. This is largely because obtaining them is so easy. Since most college students have reached the legal age, they may already qualify for student credit cards. Unlike with regular plastics, you do not need a good credit history or a high credit score to apply for a student credit card. As a matter of fact, you do not need to have credit at all! What's more, you do not even need a co-signer to complete a student credit card application.
But before you get a student credit card, there are a number of things you need to know. Like all things in life, student credit cards come with both ups and downs:
The Ups of Student Credit Cards * They help build credit. This is perhaps one of the biggest advantages of student credit cards. If you want to build your credit profile early, then student credit cards can get you started. * They teach financial management. College is a preparation for the real world. What better way to teach you about financial management than having your own student credit card? * They are convenient. With student credit cards, you no longer need to ask your parents for money. Owning student credit cards means having money whenever you need it. You just basically charge everything on your student plastic and wait until the bill comes. * They have freebies. Rewards, rebates, and discounts are just some of the goodies you get from owning student credit cards. The Downs of Student Credit Cards * They can ruin your credit. True, student credit cards can build your credit, but keep in mind that they can also ruin it. If you have trouble paying bills on time, then your credit score will surely plummet faster than you can say delinquency. * They have high interest rates. This is the ultimate catch with student credit cards. Credit card companies are aware that college students are high risk consumers. Thus, they do not impose certain security measures against the risk of repayment. If you frequently use your student credit cards for impulse purchases, then expect your interest rates to pile up. Now that you know the ups and downs of student credit cards, make sure you think twice before applying for one. Keep in mind that student credit cards are not free money. As such, you should use them wisely and responsibly.
Credit Cards
|