Today, charge cards for students have become quite popular as they enable them to obtain the advantages of cards with low interest rates. In fact, some cards do not charge almost any fees. Apart from the benefits, the cards also help the students to construct credit. Nowadays, you can find several such cards to pick from, such as for example secured, unsecured, merchandise, and prepaid cards. But, you must always choose one that suits you the most. Alongside, it’s also wise to bear in mind that charge cards come along with a lot of financial responsibilities. Therefore, you have to use them wisely.
Unsecured
It’s a kind of card that will not require any cash deposit make purchases from an easy type of credit. This sort of card for student offer limited or normal credit, but is the most preferred option for the students. In fact, it’s been designed in a way to greatly help student to boost their credit profile. Yet another good aspect about this type of card is so it offers 1% cash back as an additional benefit amount on each and every purchase you make through it. Additionally, the card does not come along with almost any annual membership fee. On the top of that, it even provides an extra 25% reward once the monthly bill is cleared on time. You can redeem the reward by way of a check or into your account. Moreover, this type of card does not put any limit to the amount of money you can earn.
Secured
That is a form of card that fetches money from an account shared by your cardholder. Reliable and good secured cards always submit an aspect of one’s payment record to credit bureaus to be able to permit you to build credit. The facts of one’s payment record are submitted to three chief credit bureaus and email or texting are accustomed to send monthly payment reminders. This kind 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 quite similar to a secured one and it also incorporates a checking account. As its name suggests, in this type of card you may spend the funds that you deposit to the card. Because of this, the monthly fee associated with this card is fairly nominal.
Important Guidelines To Help College Students To Get A Credit Card
In earlier days, it had been very simple for college students to obtain charge cards as there were many sources available. There were too many companies who would offer free cards to students by just filling applications. Unfortunately, in February 2009, Credit Card Act of 2009 arrived to 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 find it hard to qualify. Before going to obtain a card, students are supposed to know many reasons for having the qualification and related stuff, following are few guidelines, you can have a look.
· Firstly, study about charge 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 boost your interest, ways to prevent any additional charges and many other card related queries.
Comparison of different types of card schemes and offers for college students can be an important 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 different pair of rules. Interest rates, benefits and charges of every company differ with another. You need to take up the responsibility of selecting one company that suits your requirements. Look for benefits yourself and avoid additional costs using some benefits.
If you don’t have sufficient credit, then you will get an alternative kind of credit card called Subprime credit card. However, they are many additional charges on most of these costs. In earlier days of such card, there is around 75% of limit on charge cards, now it’s 25%. 신용카드 현금화 You can see there’s a lot 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 would assist you to in enhancing the credit score at a later stage.
Whenever a student enters his/her college premises, he or she’s flooded with offers from charge cards companies. These cards for students build a sense of responsibility, make sure they are comfortable and make them to improve their credit as well. There are numerous advantages of owning such cards; nevertheless students must be cautious in handling a charge card as he or she has to know in regards to the debt factors of a credit card. We have laid down some benefits of having a charge card with students; refer these points to know about it.
Following the introduction of new laws regarding student charge cards, there were 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 following the student leaves college. Besides having many advantages, credit card for student carries a lot of disadvantages too; let us have a look at them as follows.
Way too many cards as well as debtors: According to a survey in 2009 done by Sallie Mae, it had been unearthed that students are wholly influenced by a charge card nowadays which is generally not very a good thing. It is just a known proven fact that about 84% of college students are receiving the main advantage of getting at the least one credit card; while the average is all about 4.6 cards. Clearly, this means when students is having one card, he can spend up to $5000, and similarly he can spend up to $15000 with 3 credit cards. As we realize that interest rates are blooming these days, it’s quite obvious the debt amount will increase drastically.
Too high balances: This is actually the absolute most problematic situation that found Sallie Mae; it had been that $3173 was the mean balance of charge cards being carried by college students. It had been shocking to know that this figure was the highest among all the figures. This demonstrates students are not utilizing the cards for convenience purpose; instead they are misusing the given advantage and are getting beyond their limits.
These cards for students as well as loans: That is also another burdening disadvantage while the debt of the students is carried forward to the coming years which become a loan debt. It’s very sad that the students need certainly to take the responsibility of paying it right 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 one other 77% had no reference to the debt loan.
