Information on student credit cards

The Good, Bad and Ugly Side of Student Credit Cards

Jessica is a teenager who studies law. Like most of the other teenage girls she lives life to the fullest. That directly or indirectly points out towards her shopping expertise. Yes, her life would come to a standstill if she were to do without shopping. What makes the picture even more drastic is that she indulges in fancy buying. Jessica is not a million dollar baby that she can afford to spend to her heart’s content. So, what makes her go about her shopping expedition? Student credit card is the support ladder that prompts her to shop the feasible way.

Do I need a student credit card?

Student credit card is like taking control of money matters in your own hands. Like Jessica, many teenagers fall prey to the lure of credit cards because they find full financial independence. These plastic cards are such an addiction that you will not realize the consequences until it’s too late. On the contrary, credit cards are quite an irrefutable reality of college life. Credit cards should find a place in your wallets for a good number of reasons. What about those relevant purchases, those online shopping and not to mention emergencies. In that case, make sure that you apply for a credit card if you don’t have one.

Things you should know about credit cards

What Jessica didn’t know, you must know. The thing that you should bear in mind is that credit cards are not free money. The credit card companies charge high interest rates for credit card facilities. Thus, credit cards are soaring interest loans in disguise. It is basically immediate expenditure for your future income. Let’s find out the break up summary of some of the typical credit card fees. Now, you will find a finance charge, an interest charge as high as 20 percent, an annual fee, a probable yearly membership fee, cash advance fee, late payment fee etc.

Jessica feels sorry for herself because she made cash advances. In return, she faced high interest rates and fees. And paying late was like an everyday affair. No wonder, her interest rates were hiked. Don’t repeat the mistakes she did. And beyond that, remember carrying a balance can be pricey. Moreover, make sure that you meet the whole amount in your account each month otherwise you may land up with big finance charges.

Why spend judiciously?

Your credit history takes shape during your college years. And this matters a lot if you are to apply for an apartment or make a hefty purchase. In fact, your credit report shall also stand between you and your employer who goes through it before he considers your recruitment, promotion, reassignment, or retention.

Once you sign up for a credit card, you will be accountable for disbursing the bills. If you don’t wish to end up in debt then it makes more sense to use a debit card instead of a credit card. You can use the credit card only if you can manage to repay the debt. Then again, impulsive shopping is something that you can do without.

Jessica today helps most of her other friends in understanding the pros and cons of student credit cards. She is trying her level best to meet her debts and learn from her own mistakes.