Often people don’t equate student with finances! Maybe that’s why the majority of students wish that they quickly grow up and can handle their finances as adults do. However, this is the 21st century, and there’s a solution to everything. Today, the concept of student credit cards has brought solace to mothers in a big way. Mothers no more will have to worry about their sons and daughters spending exorbitantly with these credit cards. Since these cards get designed for students, they are a tad bit different than the business and individual credit cards.
Understanding what a student credit card is all about
Simply put, a student credit card provides students to take a browse in the domain of finance. Gradually, they can understand what financial independence is all about at an early stage. Developing your credit much early in life is made easy with a student credit card. And this offers incentives to buy and pay off the bill within a stipulated period. Also, there are several choices available to assist the student, when for some reason he/she miss a payment.
Benefits of a student credit card
Like every credit card, even student cards have a few catches! But for now, let’s focus on the advantages that the student credit cards offer. And one of the benefits comprises of financial education along with essential resources available online. These can also be made available through phone or an app. All these work hands in hand to help in generating stable payment habits, in the form of reminders and alerts. Additionally, the cards also provide attractive cash back offers and rewards to the students.
Furthermore, sometimes the lenders can also sanction low-interest rates and limits to their students. It is a perfect way to start developing a good credit history. Other than rewards, there are two other advantages of student credit cards:
- Security – The student credit cards provide a mix of advanced security features. These features are capable of tracking any unapproved purchases that happen in the credit card. So, students don’t have to worry about any unwarranted activity in their credit cards.
- Tools – Here the student credit cards come with a set of rules and tools for effectively managing the credit. It also helps students to maintain their budget and pay bills automatically.
How should students manage their finance?
Managing money during your student life is an essential learning process. The process should start with setting up a budget for a span of time. You can set up a loan amount, add your savings and the subtract expenses like mobile phone bills, rent, tuition fees and many more. And after deduction, what remains include costs for transport, food and money for any entertainment activity.
Student credit card companies provide excellent budgeting tools. These help you to make monthly and annual plans to make sure that students are spending to the capacity they can afford. As a student, you have access to several deals and discounts. Hence, always feel free to ask for the same when you are making payments.
Things to need to check in a student credit card
Similar to an ordinary credit card, you also want a low APR in your students’ credit card as well. APR stands for the Annual Percentage Rate that you get charged on any balance that is yet to get repaid. It’s always to get organized and disciplined about your finance. As a student, you can always make strict plans about never incurring in overdue payments and have fines for delayed payments. It’s always good to try.
And similarly, you must also keep in mind that finances tend to get unpredictable. And as a student, you are still learning about your finances. So, the lesser is your APR, the faster you can repay the amount incurred.
Before signing up for a student credit card, know the time frame for which you have access to interest-free-credit at every purchase. Generally, famous student credit card brands have a time frame of 56 days, at a time when all the acquisition took place. However, it’s only natural that different service provider will offer different rates. Student credit cards today are advanced in the features that they offer. Few students who opt-in for the companion app provided by few brands. This app helps to send you daily reminders on the due date and the amount that you have to repay. Students are caught up in a million things. The app thus acts wonders.
However, there’s one word of caution that every company offering student credit card will also suggest. Before the students apply for a credit card, they can certainly keep a tab of their credit scores. Chances are you will have no default cases. But just the fact that there are any unresolved financial issues or a pending mobile bill, you might not be approved with a student’s credit card. Hence, keep the following aspects in mind when you’re opting for a student’s credit card.