If planning on attending college in the near future, it certainly helps to look at the availability of the credit cards especially intended for the college student. A well-managed credit card account is likely to offer a variety of advantages, from helping to buy essential supplies to creating a healthy credit record. Here are several of the major pros and cons of relying on this finance option -
Pros of a student credit card
Applying for the student credit cards offers the opportunity to shop for goods or services online, get insurance against purchases, avoid the need to carry a large sum of money, and have that extra financial cushion in the event of an emergency. A variety of custom-made cards are created specially to match the needs of the college student, and widely advertised at the campuses and online.
Also, a credit card used in a sensible fashion is certain to help with building a positive credit history for the future. Once graduated, a great credit score is certain to help when it comes requiring the finances for buying a new car or apartment. It is crucial to maintain the clean credit report to get in a position of getting approved for the more attractive loans and interest rates. A credit report with frequent instances of late payments is certain to make it significantly more difficult to get access to the desired loan options and related benefits.
Cons of a student credit card
A negative aspect of the student cards is certain to relate to the different charges that might be applicable. If the balance on the card isn't paid down at the end of each month, this can mean having to pay high interest rates. Also, many of these cards come with annual fees, which can range in the region of $35 to $100.
So, to limit the charges on the card, it certainly helps if the college student is able to get in a position of clearing the balance when receiving the monthly statement. A poorly maintained account with unpaid bills could result in the account being suspended and the student getting a poor credit report.
Prior to signing up for a student credit card it certainly helps to carefully study the interest rates and penalties that might be applicable in the event of late payments. Only take advantage of the cash advances provided by these cards if you're certain of being able to make the prompt payments on receiving the monthly statement.
Get a lot more information on the most enticing credit cards for college students with the most attractive all-round packages.
Article Source: http://EzineArticles.com/?expert=Sam_J_Loeb
Article Source: http://EzineArticles.com/8239583
Pros of a student credit card
Applying for the student credit cards offers the opportunity to shop for goods or services online, get insurance against purchases, avoid the need to carry a large sum of money, and have that extra financial cushion in the event of an emergency. A variety of custom-made cards are created specially to match the needs of the college student, and widely advertised at the campuses and online.
Also, a credit card used in a sensible fashion is certain to help with building a positive credit history for the future. Once graduated, a great credit score is certain to help when it comes requiring the finances for buying a new car or apartment. It is crucial to maintain the clean credit report to get in a position of getting approved for the more attractive loans and interest rates. A credit report with frequent instances of late payments is certain to make it significantly more difficult to get access to the desired loan options and related benefits.
Cons of a student credit card
A negative aspect of the student cards is certain to relate to the different charges that might be applicable. If the balance on the card isn't paid down at the end of each month, this can mean having to pay high interest rates. Also, many of these cards come with annual fees, which can range in the region of $35 to $100.
So, to limit the charges on the card, it certainly helps if the college student is able to get in a position of clearing the balance when receiving the monthly statement. A poorly maintained account with unpaid bills could result in the account being suspended and the student getting a poor credit report.
Prior to signing up for a student credit card it certainly helps to carefully study the interest rates and penalties that might be applicable in the event of late payments. Only take advantage of the cash advances provided by these cards if you're certain of being able to make the prompt payments on receiving the monthly statement.
Get a lot more information on the most enticing credit cards for college students with the most attractive all-round packages.
Article Source: http://EzineArticles.com/?expert=Sam_J_Loeb
Article Source: http://EzineArticles.com/8239583
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