Risks and Benefits of a Student Credit Card

As you head on to a college, you think to have your first credit card. As the lifestyle of college is different from the high school, so you need to spend a bit more than the usual days.

Acquiring a student credit card is easy now and in one sense, they come to a lot of use in your college. And at the same time, it is a great way to budget your finances and avoid unnecessary debts. We debt can be the other reason for you to acquire a credit card.

Many credit card companies are there out in the market, which provides credit card, knowing that they are going to use that with irresponsibility. It may sound beneficial to the credit card company, but actually, it is a kind of harassment for the credit card company, to handle customer who fails to forward their monthly payments.

Risks of a Student Card

People who are in the habit to opt for debt, tends to stay in debt. Some kind of annual fees are charged and penalties are assigned for the person who is in debt. This is referred as revolving debt. And the ones who are having revolving debts are valuable to the credit card company than those people who make regular payments.

As college is the wild time for the young adults, so they are meant to get rowdy with their spending habits. Many of the credit card companies do not hurt their cardholders, but what to do for then debt is a good way to generate revenue. On the other hand, the credit card companies are well aware that the cardholders will continue with the same credit company. Now if you are a student credit card holder, then you are sure to turn into long-term cardholder with that company.

Benefits of a Student Credit Card

Credit cards are not a good thing for the young adults because of their bad spending habits. However, at the same time, it is a great way to make them learn how to live their life independently. If you have a low limit student credit card, then you will be able to remove the temptation of bigger spending.

A credit card, which is having a low limit, can be used frugally, and hence the payments are easy to pay off in a regular fashion. This will help students to build a positive credit and takes care of the fact that the student enrolls in a finance course.

Now the student can speculate carefully between, what are their necessities and what are their luxuries. They should use the credit card with an aim to establish a good credit score, for their future financial purposes.

Remember: A Student Credit Card Must Be Used Wisely

Yes, this is the basic concept that you should be using when you swipe the credit cards in a shop, movie corner, restaurant or a gas station. This is the card when you should use during emergency, may be while ordering expensive textbooks, medical expenses or school utility expenses.

As students are staying far away from their home to pursue higher studies in their respective colleges, a credit card is must for their financial security. And yes do remember that the credit card is not a child’s play, so use the card with responsibility.

Author’s Bio: Rizzo Barter, author of this article is a financial blogger and an expert advisor. He shares his expert knowledge on credit cards and their usage to benefit his readers. He is working as a consultant at a bilingual call center, which delivers 24-hour flawless service to different kind of financial organizations.


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