In case you’re in college and don’t have a student card yet, now might be the perfect time to get one. After all, in addition to building credit, it will give you a lot of incredible opportunities to earn money and other bonus benefits.
Student Credit Card – Smartest Financial Move in College
Students don’t have to be lost financially anymore. Thankfully, there’s a student credit card, which is created specifically for younger people, matching their wants and needs as they enter college life. Just like a usual credit card, a student credit card has a credit limit – a maximum balance on the card.
Usually, those have limits as low as $500. The owner will receive their credit card statement every month: each statement will have information about possible transactions, the balance they owe, the minimum required payment amount, and its due date.
So, how does one profit from having such a tool in their pocket? First of all, make sure to pay the full statement balance every month. That way, no interest will be charged on the purchases with the card – just the actual amount.
Secondly, take a closer look at building your credit history. As one of the biggest financial advantages, a good credit score impacts so many parts of human life! That includes renting an apartment when an individual without a proper credit score will need a co-signer or more money for a security deposit.
Car and mortgage loans, too, fall under the same category. So, why not start using a student credit card to build a good credit history? To avoid being credit invisible, students can simply make purchases and pay the full statement balance every month.
Other Perks to Owning a Student Credit Card
Despite underlining a good credit score with two red lines, there are so many more pros of owning a student credit card. Positive financial activity goes hand in hand with a safe way to make purchases.
To be more precise, almost all credit cards are accompanied by zero fraud liability when the owner doesn’t have to take responsibility for any fraudulent charges on their card.
To aid students in their newfound lifestyle, many student credit cards offer their owners rewards for their purchases. Most of the time, it’s cashback. Some companies also can protect your identity and monitor your credit for free when it comes to students.
What should a student do to get a credit card? Obviously, the first and most important step is to find the right credit card. Yet, there are so many student credit cards on the market with various perks and bonuses that this step might also be the easiest of them all.
The next step is to apply for the card online. At this point, the applicant will need to provide their full name, date of birth, address, phone number, email address, social security number, and annual income. Don’t be alarmed if you don’t have income from a part-time job – it’s possible to include grants, scholarships, and even a monthly allowance in that sum.
If the owner does everything right, their student credit card will only improve their financial knowledge and skills.