Nursing Student Credit Cards-Finding a Credit Card if you are a student.
Anyone who is at least 18 years of age can apply for credit cards, according to the law. Owning a credit card can help students when they get into tough financial situations when they do not have cash to spare. Credit cards are easily assessable for students in college, but it is vital that they understand how to use credit cards to their advantage. Student credit cards can make the difference between an excellent financial future and a horrible financial future, depending how they use the credit cards.
What is a Student Credit Card?
It is a good idea that students carry at least one credit card during their college years. A student credit card is a credit card designed to help college students establish credit. Many credit card companies require potential cardholders to have good credit in order to receive approval for a credit card. The traditional credit card poses a problem for students who want to apply for a credit card because they usually do not have established credit. Student credit cards offer students the opportunity to own a credit card and begin establishing their credit history.
Student credit cards are available everywhere—especially on college campuses. Colleges and universities make agreements with various credit card companies that allow them to extend offers for credit cards to students. The colleges and universities receive the name of the schools affixed to the credit card and the schools gain popularity due to this marketing strategy. College students can find credit card companies with booths set up all across campus on any given day. The credit card companies want to convince college students to apply for a credit card with them.
Students must weigh their options before applying for a credit card. It is not a good idea to apply for several credit cards because doing this can potentially harm credit. It may be very tempting to charge things that they have no way to pay for later. Students can leave college with an abundance of debt and horrible credit. It may become extremely difficult for students to receive credit after destroying their credit with credit cards. Using credit cards responsibly is the only way to establish and maintain good credit history.
Benefits of Having a Student Credit Card
- Student can have extra cash when they need it. College students can run into unexpected expenses—such as medical bills, car repairs, or fees—that they are not prepared to pay. They can use the credit card to pay for the expense and pay the credit card down until there is a zero balance.
- The credit card can be uses to pay for school tuition and books. Paying for books and tuition creates revolving debt. Students can charge the expenses and pay for the debts by the end of the semester. Paying the debt on time helps to establish credit.
- Some credit cards offer no annual fees to students. Annual fees on credit cards can range from around $20 to $100 per years just to use the credit card. Over the years, this type of credit card can cost students hundreds of dollars in fees. No annual fees for students help them establish credit and save money for their futures.
- Students can build credit. When used responsibly, credit cards can help student build the foundation for their financial futures. Paying on the credit card on time and keeping the charges on the credit card under the credit limit are the best ways to establish and maintain good credit for the present and future.
Tips to Students with Credit Cards
- Students should never cosign for someone else to receive a credit card in their name. Doing so can harm their credit future.
- Students must use the credit cards responsibly. Do not go on a thousand dollar shopping spree just because there is credit available on the credit card.
- Students should make small purchases on the credit card on a regular basis. It is important to use the credit cards occasionally to help build credit. Credit card companies must have something to report to credit agencies to build credit history. Inactivity on the credit card can cause credit card companies to close accounts as well.
- Students should pay close attention to the interest rates on their credit cards. High interest rates on charges can accumulate additional expenses for college students who do not pay the entire balance before receiving a monthly statement.
Owning a credit card is an enormous responsibility for students. They must remember to use the credit card responsibly, or they may harm their credit history. Student credit cards are a great way to establish credit for those who have no credit history.