How To Get a Student Credit Card

Credit cards and their significance:

Credit cards are one of the types of plastic money that can be used by any individual to purchase different goods and services. They are becoming a common way to purchase goods because they allow a sense of security to the individual. Moreover, these cards offer instant cash for emergency situations.

Step 1

The credit cards are much like small loans taken from the financial institutions, but these loans are short-term and much easy to obtain. When an individual applies for the credit card, the company opens a revolving account by the name of the credit cardholder. These revolving accounts allow the individual to take credit under certain predefined limits.

Step 2

These credits has to be paid back to the credit card company at the end of each month in the form of credit card charges, but if the individual does not pay the credit on due date, then an interest is charged on the principal amount, and it is credited to next month account. There are many different types of credit cards available in the market. These cards are being categorized according to separate needs of the individuals, like the gold credit cards, the premium credit cards and the student credit cards.

Step 3

Student credit cards:

Student credit card is designed especially for those students who have passed their tender age of 18. The student credit cards were introduced in the market to cover the financial needs of the students. Moreover, they also provide an opportunity to build the credit history of the individual starting from the school life.

Step 4

Parents prefer to give their children the student credit cards because they are safe and through them, they can keep a check on their spending. The student credit cards are often offered at higher interest rates because the risk of nonpayment among them is higher than among the employed personals, but still students prefer to have them as they provide them a sense of responsibility and confidence.

Step 5

How to get the student credit card:

To apply for the student credit card the individual does not require long credit history and the employment records. However, while applying for the student credit card the individual should carefully consider the interest rate and annul fees charged by the credit-card companies. It has been observed that many credit-card companies attract the students to buy their student credit cards through high limit offer, but these cards often have high interest rate and annual fees, which increase the credit liability of the individual.

Tips and Comments

If the student wants to apply for the student credit card, then he or she should opt for the bank in which they already have their account. Moreover, students should always apply for the secured form of credit cards because they help in reducing the credit liability in case of a default.

Students should select those student credit cards which have the lowest credit limit because this will help the individual in repaying their debts. Moreover, the credit cards, which offer many deals along with the high credit limit, should be avoided because they often burden up the individual in tons of credit. 

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