University student Credit Cards: Kinds, Ways to get, Pros and cons
Today, credit cards for students have become quite popular because they enable them to get the advantages of cards with low interest rates. In fact, some cards do not charge almost any fees. In addition to the benefits, the cards also help the students to construct credit. Nowadays, you can find a number of such cards to select from, such as for instance secured, unsecured, merchandise, and prepaid cards. But, you should always choose the one which suits you the most. Along with, it’s also advisable to bear in mind that credit cards come alongside plenty of financial responsibilities. Therefore, you should utilize them wisely.
It’s a type of card that doesn’t require any cash deposit make purchases from a straightforward line of credit. This sort of card for student offer limited or normal credit, but certainly is the most preferred choice for the students. In fact, it has been designed in ways to 신용카드 현금화 help student to enhance their credit profile. Yet another good aspect about this sort of card is that it offers 1% cash back as a bonus amount on each and every purchase you make through it. Furthermore, the card doesn’t come alongside almost any annual membership fee. On the top of this, it even offers an extra 25% reward when the monthly bill is cleared on time. You are able to redeem the reward via a check or straight into your account. Moreover, this sort of card doesn’t put any limit to the quantity of money you can earn.
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 one’s payment record to credit bureaus to be able to enable you to build credit. The important points of one’s payment record are submitted to three chief credit bureaus and email or text messages are used to send monthly payment reminders. This type of card usually charges around 20% of annual percentage rate (APR) on purchases, but doesn’t charge any annual membership fees.
Prepaid cards are very similar to a secured one and it also incorporates a checking account. As its name suggests, in this sort of card you spend the funds that you deposit to the card. Because of this, the monthly fee associated with this particular card is very 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 were many sources available. There have been a lot of companies who would offer free cards to students by just 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 principles have totally changed and are so difficult that students think it is hard to qualify. Prior to going to obtain a card, students are supposed to learn many reasons for having the qualification and related stuff, following are few guidelines, you’ll have a look.
· Firstly, study about credit cards, how it works and such other things. Further, you even need to comprehend the due dates, what are the billing procedures, late penalties, limit fees, how to boost your interest, ways to avoid any additional charges and a great many other card related queries.
Comparison of different types of card schemes and offers for college students is also an essential task. You’d find lots of card companies offering cards to college going students. As no two companies are similar, you’d find each company with various set of rules. Interest rates, benefits and charges of each company differ with another. You should use up the responsibility of selecting one company that suits your requirements. Try to look for benefits on your own and stay away from additional costs using some benefits.
If you don’t have sufficient credit, then you may get a different kind of credit card called Subprime credit card. However, they’re many additional charges on these kinds of costs. In earlier days of such card, there was around 75% of limit on credit cards, now it’s 25%. You can see there’s plenty of difference.
While selecting a card, make it 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 help you 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, make them comfortable and help them to boost their credit as well. There are many benefits of owning such cards; nevertheless a student needs to be careful in handling a charge card as she or he has to comprehend about the debt factors of a credit card. We’ve laid down some advantages of having a charge card with students; refer the following points to learn about it.
After 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 due to the credit card facility. These debts even carry forward after the student leaves college. Besides having many advantages, credit card for student carries plenty of disadvantages too; let’s have a glance at them as follows.
Way too many cards along with debtors: According to a survey in 2009 done by Sallie Mae, it was discovered that students are wholly influenced by a charge card nowadays which is not at all a good thing. It is really a known fact that about 84% of college students are receiving the benefit of getting no less than one credit card; while the typical is all about 4.6 cards. Clearly, this means that when a student is having one card, he can spend around $5000, and similarly he can spend around $15000 with 3 credit cards. As we realize that interest rates are blooming today, it’s quite obvious the debt amount will increase drastically.
Too much balances: This is actually the absolute most problematic situation that discovered Sallie Mae; it was that $3173 was the mean balance of credit cards being carried by college students. It absolutely was shocking to learn that this figure was the highest among other figures. This shows that students are not utilizing the cards for convenience purpose; instead they’re misusing the given advantage and are going beyond their limits.
These cards for students along with loans: This really is also another burdening disadvantage because the debt of the students is carried forward to the coming years which develop into a loan debt. It’s very sad that the students need certainly to take the responsibility of paying it just after their commencement of careers. According to Sallie Mae’s study in 2009, 23% of the students remained unanswered when asked about their loan payments, while the answers of another 77% had no experience of the debt loan.