Credit card for students
It is a renowned fact that usage of credit cards amongst students has become very prevalent in the modern generation. Credit cards have become an important segment in student’s life and this is one of the primary reason more and more credit card firms are offering credit cards to students. Though being students the usage of credit cards is more because of the modern life style and accommodate various day-to-day needs. There is a common feeling amongst the companies which offer these credit cards to the students that offering students the credits is less risky when compared to the other people in the society.
Many of the students go for a credit card at a very early stage of their life because they want to establish a good credit score and credit history so that they can lay a sound platform for their future need of credit and usage of credit cards to full fill the same. In the current scenario there are various types of student credit cards and these are made readily available for students based on their need and request. These student credit cards typically include bank cards that are provided by banks to avail any facility from the bank. Then there are household credit cards, which are given to students to meet any household expenses and apart from these there are travel and entertainment cards, which are used most frequently by the students just because of the mere fact that during the phase of being a student there is a lot of opportunity for travel and entertainment. In addition to these various types of student credit cards, there are other credit card accounts for students and they can be categorized basically into the below mentioned 3 segments:
Revolving agreement: The important feature of this particular agreement is that the student or the cardholder has got the privilege to repay partial or some of the amount of the total balance. Some of the entities or departments, which provide this particular facility is gas and oil companies and financial institutions such as banks.
Charge agreement: In the particular agreement, the cardholder basically has mutual consensus with the credit card firm and agrees to pay the installment due towards his credit card payment every month as a whole and also has the benefit for not paying any interest.
Installment agreement: In this agreement, the cardholder agrees to pay chunks of money every month or whatever the frequency may be and these are called as “installments”. These installments are agreed upon when the cardholder discusses his financial status with the credit card firm and they mutually agree for a fixed installment to be paid over a specified duration of time. The biggest advantage of this particular agreement is that the installment amount always remains constant and same for every repayment.
Obtaining a credit card especially for students is not at all difficult these days. Previously there used to be a lot of obligations and one had to undergo a lot of formalities before getting a credit card. But these days the credit card firms are widespread and they have their agents roving across every college campus to attract students and help them understand the features of these student credit cards and finally allot them the credit card through their firms. As the general principle goes for any person the same is also applicable for students as well while going for these credit cards and that is “always be careful and understand the pros and cons completely”. There are many credit card firms, which offer various rewards on their credit cards such as gifts and bonus. Certainly these offers look very enticing and because of the attractive way the whole package has been designed it is but natural for the students to get tempted and take more than one credit card especially having these offers. It is always important for anybody but more so in this case for the students to make repayments on time and do not default much, as this will help boosting their credit score and credit worthiness. To get a student credit card one can chose either to talk with the agent or the mediator or can directly approach the credit card firms.
It is best advised that when you approach these credit card firms, be very patient, hear to what the professionals has got to say and never rush in and commit for the first product or offer they show you. You can always take that before that get fully convinced that it is the best offer or best credit card for you. But if you are not do not be under any obligation and clear express you view to the professional sitting over there that you want to see more products and offers and want to avail the best out of the lot. One of the best things to be done is always apply for a credit card from the bank that you have a current account with and the two advantage by doing this are, you will get good customer focus because you are already banking with that particular bank and now you are even going for a credit card with the same bank and the second one is you link your credit card payments to your current account and give standing order instructions to have repayments done every month on a specified date and this will help you in not defaulting any payments and thus improve your credit score. Before you take a credit card, make sure that you have understood all the terms and conditions, pros and cons and all the features. Devote some time in analyzing and researching to get a complete picture of the credit card that you are going to take and the credit card firm, which is selling you that product. Ensure that you talk to the agents on a frequent basis and get good understanding regarding the fees that will be charges in case of a late payment and what is the APR (Annual Percentage Rate) and interest rates. Students very early in their life will learn a lot about how to effectively use credit cards, the advantages and disadvantage of the same. One of the biggest advantages in effectively using credit cards and making payments on time is that it will consolidate and improve the credit score of the person. Simultaneously at the same time one need to understand that if a person is continuously defaulting payments then the credit card firm can take an action to get this resolved.
Alongside the late payment fee will get accumulated to your actual balance every time a person does not make a repayment and it will only become a tedious process from long-term perspective. Always make sure that in case of automated payments then your current account or the saving accounts has got enough money to meet the repayment amount.
Though credit card is considered to be plastic money, it is of great advantage to any individual especially the students. If used properly it will prove to be of great advantage, but if failed to use it properly then a person would get deep-drowned in trouble and will end-up having financial despair.
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