Student credit card debts - a vicious cycle,It is better to prevent than to repent, one can always learn.Arguably student credit card is not a good idea! Money needs proper handling and negligence can cost. Agreed! The card issuing companies are wooing the students to ply the credit game- enticing them to spend, at time unnecessarily, hook them on cashless transacting and other reasons with a commercial angle. But on the other side the parents are in a hurry to turn the students in worldly-wise responsible, self-reliant individuals. Ask the students and they are ready to take on the world with the student credit card in hand.
The credit card company doesn’t mind taking the risk, with conditions attached. It is testing time for the students and teaches the students to see beyond spending, and paying, it is setting up of the credit status for a lifetime.The student credit card offers many benefits, if the card is handled wisely, all goes well, and the difficult part is the mounting debts if left unattended could cause a bad credit name inconveniences and embarrassment to the co-signer. But there is always a first time, everyone got to learn life’s lessons sometimes the hard way and some young persons hardly learn. The secret to debt free is the best way build a clean credit status.
Students survive on pocket money and have no source of income, obviously need to be careful as missed payments are a possibility. Because the students fall under the high risk category the card issuing company’s rate of interest is higher compared to other cards. Over the years students won’t be student forever, over the years the students will find jobs, and manage to payoff the credit card debt that must not exceed up to 50% and the student credit card will evolve into other cards.
Choose the card with the lowest and other fees and choice of benefits. A few “rule of the thumb” things to always remember-
• Budgeting sets the blueprint of expense; bills and purchases eliminate unnecessary expenses.
• Temptations keep them at bay as they might get you in trouble. Remember every purchase is a loan and has to be repaid at the end the month with interest.
• Use cash as well, if you use the card every time you buy it costs more.
• Remember you are spending only from what you have, it is not borrowing.
• Keep an eye on the balance statement every month, you may realize your mistakes and find scope for improvement.
To sum it up,a student credit card is like any other credit or debit card,the difference is the high rate interest. If you tie down interest rate to a limit you will never run into problems. Hence a careful handling of the card will keep you smiling, build a good credit rating, Good debts or Bad debts lies in the hand of the student credit card holder.
*See the online application for details about terms and conditions Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. When you click on the offer you desire you will have an opportunity to review the credit card terms and conditions on the credit card issuer's web site.