Student Credit Cards Taking the Plunge

Have you ever experienced of not being able to submit a school project because you are out of cash to buy materials and you can’t even ask for money from your classmates because you haven’t even paid your previous debts? Have you been in a situation where you have to suffer from sleepless nights thinking of where to get your tuition fees since your college loan is not even enough to get you started with school? Then, worry no more because the student credit cards are here to the rescue!

Student credit cards are selling like hotcakes especially to college students staying in dormitories. Many parents are in favor of this since it would be of big help whenever their children are faced with emergency situations. The benefits of having student credit cards include cashless transactions as well as cash advance withdrawals from ATMs. It gives students convenience and would help save a lot of time since students could get away with the need to fill up forms for loans. It also gives them an opportunity to do internet shopping, make reservations in restaurants or hotels and even purchase airline ticket when they need to head back home in emergency cases.

The multi-billion credit card companies extend help to the students by changing their terms and conditions to fit the qualifications that would apply to them, especially the younger and unemployed ones who have no credit history. Aside from extending credit card usage to these students, companies also use it as a marketing strategy since these students could be their future customers when they are already having blue-collared jobs in the corporate world.

Many credit card companies utilize different marketing strategies and special offers just to get the large market in colleges and universities. They offer cash rewards, cash backs on purchases, no annual fees as well as 0% annual percentage rate (APR) for several months. However, without someone to guide these students, their ignorance regarding being a credit card owner could be a loophole that these credit card companies could take advantage of. Parents and students, therefore, need to have a background check on these companies as well as choose a good company that would give the best offers applicable to the needs of the student customers.

The benefits of having a student credit card stops when it is misused. Parents, especially those who are credit card users, should give time to explain the dos and don’ts when it comes to credit card usage. Proper knowledge about the credit card company’s terms and conditions is also of utmost importance when applying for these credit cards to preclude future problems that would come in the picture. Students should be aware of penalty fees, annual fees, APR, grace period and most especially the credit limit that their credit card company requires. Students should also be informed of having good credit history because it plays an important role in their future transactions with the credit card company. It is important to maintain good credit history because it saves you money since you will be given better interest rates, you could be given higher credit limits and you could be have the benefit of a VIP treatment when you decide on having an auto loan in the future.

The ultimate goal here is to educate the students to become responsible card users as well as to inculcate in their minds the importance of being out of debt. After all, it would be more fulfilling for them to graduate without unpaid student loans as well as without debts from their credit card companies.