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Managing finances early helps a long way in having a healthy financial habit. Student credit cards make it easier to cultivate healthy financial habits, build credit history which is sound, and learn the dynamics of credit driven economy.
Applying a student credit card can be overwhelming, especially because most credit card companies ask for credit history before approving the credit cards. But there are special student credit cards available in most credit card companies, for half the interest rates and no annual fee. To get the best deal of credit card, a bit of shopping is required since different companies have different schemes. Choosing one with free interest rates, no annual fee and some form of credit card rewards is the best option.
Cash back reward schemes help students in their daily shopping and other needs. Discounts on college related purchases are added perks that help in saving the money. Students must pick credit cards that are student friendly, which means, helping them in save money with every swipe. Another way to save money is to apply for interest free credit cards. Although no credit card has interest free scheme for the entire time, introductory periods may help in saving money and managing the finances. Learning to manage credit available, and paying the bills on time needs some experience, and it helps if there is an interest free period.
To get a student card approved, a valid student ID is required from the university. Applying online also helps because it is easier online. Since they are student credit cards, applying for them is fairly straight forward, with no much paper work. Sometimes, signing up with a co-signer will give better reward schemes and interest rates, which is worth having. Signing up as an add-on card also is a good idea, since it makes the process easier, and helps during the initial learning phase. After building a credit history, a different card can be applied for. It is really easy to build upon a lot of debt if the credit card is not used cautiously. Students need to be especially careful of this situation, since they will be new to this credit system and paying bills. Although having a credit helps in making purchases in advance, buying things that are necessary is important, because paying back the bills may be a challenge otherwise.
Handling debts even before graduating from school is not a very pleasant situation, and credit cards must not be the reason for it.