Meeting Student Needs – Credit cards and Cash advances

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Meeting Student Needs – Credit cards and Cash advances

Meeting Student Needs – Credit cards and Cash advances


Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.

Credit cards made available to students differ from the usual credit cards. The credit card companies have broken down the needs of student and their person financial circumstances. To begin with, most students do not have steady incomes. The odd dollar made by working part time jobs can hardly suffice to make credit card payments. Credit cards are therefore custom-made for students, taking into consideration these aspects.

The need for expenditure is a very important aspect that credit card companies take into consideration. The most urgent need for money may be medical expenses, travel and other college related emergencies. These expenses are relatively small. Student credits therefore, have lower credit limits when compared to the other credit card limits. The credit limit on a card is also determined in some extent to the amount that the bank, or company believes the applicant will be able to repay. This is based on details such as income, assets owned etc. The source of income for a student will mostly be negligible. Therefore the credit card will be issued based on the income of a guardian or parent. The credit card company will ask the applicant to furnish the details of any valuable assets that he/ she owns. This will impact the credit limit allowed.

Different credit card companies have different schemes and policies for students. Some companies offer a reduced interest rate, or a period of lowered APR. Some cards even offer a 0% APR on purchases made for a certain time period, say six months to a year. The schemes offered will differ from company to company. Students interested in availing a credit card must identify a company and a scheme that best suits their purposes. There are several hidden costs that one must watch out for.

Some companies also offer a variant of the credit card, the cash advance. The cash advance functions more like a loan than it does as a credit card related scheme. The cash advance is a sum of money that the bank or credit card companies makes available to students to help them meet expenses till they are paid or get money from other sources. Students who work and students often run out of money close to payday. These cash advances are useful as they meet immediate needs. The total amount payable which is inclusive of tax is considerable lower as the cash advance is a one time affair and not prolonged over time like credit cards are.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Winter 2019 – Expert’s Choice

Posted: December 17, 2018

Nights are still drawing out, the wind is cold, and the air smells like snow already – the winter is close. Christmas and holiday season are approaching swiftly, and overwhelming gift ideas are swirling chaotically in your mind. Ready or… Continue reading

Credit Card Tips For Holiday Shopping 2018

Credit Card Tips For Holiday Shopping 2018

Posted: December 15, 2018

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household… Continue reading

Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

Posted: November 25, 2018

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!