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Few people know that the best time to actually build your credit history is when you are still a student. Not only will this give you a sense of responsibility at an early age, you will also acquire the habit of thinking about your financial stature even. So, if you are a student and have decided to start considering your financial credibility, make sure that you choose a credit card issuer that you can trust, such as a card company like MasterCard.
As everyone knows, Mastercard is one of the major credit card issuers trusted by banks and cardholders. The company knows so much about the needs of their card holders that they have created student credit cards. Because they are made for students, these cards do not require the cardholder to pay annual fees. They have also allowed a credit limit that is best fit for a student's lifestyle. Another privilege given is that the student cardholder is allowed to make purchases at 0 percent interest rate for a few months. Because of the student credit card's nature, most applications can easily be approved as long as you are able to show proof that you are a student.
What you should remember is to try your best not to max out the credit card limit. Always take into consideration your capacity to pay off your debts at the end of the month. Otherwise, you will see your interest payments increase every month. This will surely be a heavy burden on your finances, even when dealing with just student credit cards.
As mentioned, you can also build a positive credit history when you own a credit card. However, you will need to be cautious about your spending habits. Otherwise, incurring debt and being unable to pay for the monthly dues will earn you negative points. The negative credit history will have a major effect in your future transactions with financial institutions.
The most important thing you should always remember is that owning student credit cards is more than just having a backup for emergency purposes. As students with not much financial history yet, having a credit card is the easiest way to build your credit history even before you start working. There are really advantages to owning student credit cards, but it will always be up to the cardholder. When it is not abused, it can be a major support to the students' life.