Many students today own a credit card. If handled with care and a strong sense of responsibility, owning a student credit card actually has many benefits. So if you are thinking of owning one, you should also consider the duties that come with it.
Owning a credit card can be quite convenient. If you are enrolled in a course that requires you to purchase costly resources such as books, then you will not delay the purchase even if you do not have the money yet. Thus, a student credit card can come in handy. Your studies should not suffer just because you do not have sufficient cash right now. Whether it is for a laptop, books, or other equipments, you are immediately able to get what you need for your studies and then pay for them once resources are available.
The most important thing to be emphasized about owning a student credit card is that it does not give you any access to unlimited supply of money. Whatever it is that you charged with the credit card, you will have to pay for it later on. If you are not able to pay for the monthly payments, banks will then be able to charge you high interest rates. And this will continually increase as long as you do not pay for the full amount of your debt.
You should also take note of your credit history. Being unable to pay for your credit card responsibilities will earn you negative points with credit bureaus. This will affect your future transactions with prospective employees and other financial institutions.
Before you get a student credit card, make sure that you are aware of the different fees that the credit card issuer may charge you as well. These fees include monthly rates for late payments, or even rates for availing of cash advances.
However, most of these credit cards have a fixed credit limit that is suitable for the student's lifestyle. This, of course, could be increased if you are able to show any proof of income.
You should also check for the rewards program of a credit card. Find a credit card issuer that has a rewards system that best fits your needs as a student. This may be in the form of cash rebates, discounts in shops, or other bonus points that you can earn.
Indeed, a credit card can bring a lot of convenience for students like you. The key here is in knowing the responsibilities associated in having your own credit card.