Yes, you’ve heard that right! Credit cards aren’t always synonymous to piling debt. As opposed to the common notion that credit cards are just a spiraling form of debt, let’s look at the brighter side of things and see how we can use credit cards to your benefit.
Credit cards especially for students enable them to shoulder the innumerable responsibilities that come their way. This is the right time to secure your future and embark on your journey towards financial independence. It all depends on how you leverage the power of the credit card to help you in times of financial distress and otherwise as well. The best student credit cards in USA give people all the more reason to opt for credit cards.
Basically, not everyone has the finances to buy everything on their wish list, or to live a decent life for that matter. Credit card is a powerful tool that enables you to buy things on credit and then gradually pay for it, lessening your financial burden. The credit card company being the lender lends you your desired amount of money, allowing you to pay back later on, with additional interest obviously. The interest rate increases with time depending on the leverage period you take to pay off your loans. You don’t need to worry here, as there are official laws, that ensure transparency and fair practices regarding credit cards.
Advantages credit cards offer to students
A credit card can be a life saver for a college or university going student who is struggling to establish a sound and stable academic base, being social and managing finances simultaneously. Below are some clear-cut benefits that credit cards offer to students:
1Building up a good credit history
College students above 18 in the US should most preferably have a student credit card so they can have a good credit history by the time they graduate. This is because there is a line of expenditure awaiting you which may include employment checks, mortgage loans and housing rentals. It would not be a very good idea to use your credit card for everyday expenses like groceries and utilities, though it might come handy and if well-managed, then nothing like it. Lower credit limits help students take the first steps towards building credit. You’ll definitely benefit from your credit score as you’ll have handsome deals being offered to you.
Credit card companies offer many incentives to customers to make purchases and pay them off in a timely manner. Paying your credit card bills on time to avoid unnecessary additional costs can train you for a more financially secure future. Reliable credit card options support you if you miss on a payment or may go overboard with spending, which can be traced back to emotions or impulse. There are actually specific tools that send you reminders via notifications to help you keep a check on your spending.
3Student card benefits and rewards
Students get premium benefits from using these credit cards from their universities and elsewhere. Certain outlets, restaurants and cinema’s collaborate with the credit companies to give the student card holders added benefits and discounts. This motivates them all the more to go for it. Some cards even offer a waver on the foreign transaction fee-benefitting students who travel abroad. Some of the rewards include miles, points (for every dollar that you spend), cash backs and other incentives. The reward system centers on good academic grades also, which further motivate students to score and perform well.
Unauthorized purchases on your card will not hold you responsible. If your credit card either gets misplaced or stolen, replacement cards are delivered to you within 48 hours. If something goes wrong you can expect a refund from the credit card company. You can claim remuneration for exchange and repair, non-delivery, fraud, cancellation or bad debts by just paying a deposit through your credit card.
Plastic money-control it before it controls you