For students, who want to build a strong credit standing, student credit cards are a best option to consider. This is an easiest way to build a strong credit standing. In recent days, many banks and financial institutions grant such credit cards for students, mainly for building a good credit report as well as availing loans in the near future.
However, you cannot merely sign up for this credit card. You need to consider its advantages and disadvantages before finalizing one.
Main Things to Know:
First, you do not have to go from places to places to find such credit cards, since credit card firms come directly to you, if you have enrolled your name in any University or college. At times, to attract you, they even offer some goodies such as coffee mugs, t-shirts, stickers and pens. Even, if you do not find them in your college or university, browse online and shop to obtain these credit cards.
Your requirement for student credit card relies on your affordability. Indeed, this type of card offers lot more conveniences than cash, such as safe and secure accessibility to cash 24/7 and is also replaceable incase of lost. Nonetheless, you still to need think whether you can afford such type of credit or not.
Although it gives you a sense of freedom, you need to be careful. Even a small amount of purchase can accumulate big amount and eventually you may find difficult to pay. In addition, you need to consider other charges and fees associated with this card.
These credit cards often come with hidden charges such as processing fees, annual fees, and cash advance fees. Hence, if a bank charges more associated fees for a student credit card, just avoid it.
Understand there is no such fixed interest rate charged on these cards, since many credit card companies change interest rate whenever they wish. Do not worry, as they inform you 15 days before the inflation. Here, you need to bear in mind that your interest rate may or may not change in the near future. Ensure to read the contract terms and conditions before signing.
Never trust your bill, as sometimes unknowingly the bank may enter a wrong amount in your bill, which you are not liable to pay. Thus, it is a wise idea to check your monthly statement carefully, as soon as you get it.
You may damage your credit standing, if you are not vigilant. Remember, bad credit is something that follows for long in your life. It obstructs, when you decide to avail loans for home purchase or higher studies. The amount owed on a credit card may seem to be big at this moment, but when you graduate and step into outside world, it may turn hefty, which you will find difficult to repay. Hence, it is wise to pay as and when the amount accrues.
Consider these above-mentioned points and wisely choose and use a student credit card.
Tom Tessin is an author for FINDcollegecards.com that is geared toward students looking for student credit cards
Article Source: http://EzineArticles.com/?expert=Tom_Tessin
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