Learning to manage finances at a young age is important for a healthy financial life. If you haven`t still considered getting a student credit card for yourself, then you must look for options and get one soon. Even though credit cards run the risk of getting you in a financial debt, learning to use it properly can give lots of benefits.
Student credit cards have the extra benefit of the 0% annual percentage rate, or the interest rate. If you come across a card offering this, then you must read the details in the small print carefully, before making your choice. 0% interest rate means that for the specified period of time, there will be no interest charged for the outstanding balance on your credit card. The period for which this offer is made available is set by the credit card companies and is usually from 6 to 12 months. This can particularly benefit students who are new to credit cards and are learning to manage the finances. It is difficult to get it right for the very first time and having to pay interest for the outstanding balance is an added burden to students.
Even if the 0% interest rate cards charge little higher interest rates in the future, you can always get around it, by paying your bills on time. Use the interest free time to develop healthy spending habit, so that you can pay the bill in full amount every billing cycle.
If you are looking for cards that offer rewards, then there are numerous options here, too. Rewards ranging from air miles to gas points are offered by credit card companies to attract new customers. If you are looking for rewards that help you the most, then you must consider opting for cash back or point system. If you plan on using the credit card for your every day purchases, college books and other things, then having a credit card that offers cash back for all your purchases, will help you in the long run. Gas points can benefit you only if use your own car for transportation, but most students opt for a point system or a cash back credit card.
Learning to handle finances through a credit card is very easy. You must however remember that careless handling of credit card can land you into financial debts which can be difficult to handle for a student. Plan all your expenditure in advance to avoid any such circumstances take over your finance.