23:06
kamran ahmad
Different people have different needs. Providers and credit cards have also designed different types of cards. In addition to the normal credit cards, there are small business cards for small business and then there are credit cards for students are designed specifically for students.
Now, what is different about student credit cards?
You could say not much, since all credit cards work in much the same way and are used for more or less the same. However, there are two main differences with credit cards for students and these differences are the two main aspects namely the credit limit and APR.
The credit limit for student credit cards is generally very low. This will usually $ 500 to $ 1000 per month. Some people may argue why such discrimination. Well, the reason is very clear and obvious. Most students apply for these credit cards have never used a credit card in their lives and they have neither a credit nor the knowledge about credit cards. While the first is that suppliers seek credit card before providing credit card, the latter is what the credit card holder would like to acquire. The two aims are achieved by keeping a lower credit limit. The provider of credit card reduces the risk they take by issuing a credit card to someone who has never used one and has no credit rating. It's good for the cardholder credit too because it reduces their risk of damage can be caused by little or no knowledge of credit cards and bad spending habits. In addition, the credit limit would be sufficient for the needs of a student in general.
The APR on credit cards to students is generally higher than on normal credit cards. Again, the reason for this is the same as the lower limit either the credit card company credit or credit card provider is after all in business and take steps to mitigate potential risks, including the risk arising from the issuance of a credit card to someone who is naive in terms of knowledge of credit card.
The credit card companies might also keep certain terms and stricter conditions on the credit cards to students and generally require a parent or guardian to sign as guarantor.
Since credit cards are more a necessity than a convenience in today's world, credit cards for students are much recommended, especially as a learning tool to get students prepared for life. Because of their inherent characteristics of credit, etc. lower limit, student credit cards can not lead students in a debt situation totally irreversible. Students should read all instructions provided with their student credit card. The first credit card will teach them to protect themselves against fraud with credit card, which all use their credit card, how to control spending, the benefits of membership of different etc. The sooner they learn these things the better.
In addition, the credit card for students will also help you develop a good credit rating. You should not take credit cards for students lightly. If you spend too much on your student credit card or default on your payments by credit card bill, you will not only end up paying interest on your credit card balance but also ruin your credit rating. Remember that bad credit will not only hinder your chances of getting another credit card later in your life, but also cause problems in the approval of your mortgage / car requests loans, etc.
And credit cards for students are probably a good way for students to begin with credit cards.
Now, what is different about student credit cards?
You could say not much, since all credit cards work in much the same way and are used for more or less the same. However, there are two main differences with credit cards for students and these differences are the two main aspects namely the credit limit and APR.
The credit limit for student credit cards is generally very low. This will usually $ 500 to $ 1000 per month. Some people may argue why such discrimination. Well, the reason is very clear and obvious. Most students apply for these credit cards have never used a credit card in their lives and they have neither a credit nor the knowledge about credit cards. While the first is that suppliers seek credit card before providing credit card, the latter is what the credit card holder would like to acquire. The two aims are achieved by keeping a lower credit limit. The provider of credit card reduces the risk they take by issuing a credit card to someone who has never used one and has no credit rating. It's good for the cardholder credit too because it reduces their risk of damage can be caused by little or no knowledge of credit cards and bad spending habits. In addition, the credit limit would be sufficient for the needs of a student in general.
The APR on credit cards to students is generally higher than on normal credit cards. Again, the reason for this is the same as the lower limit either the credit card company credit or credit card provider is after all in business and take steps to mitigate potential risks, including the risk arising from the issuance of a credit card to someone who is naive in terms of knowledge of credit card.
The credit card companies might also keep certain terms and stricter conditions on the credit cards to students and generally require a parent or guardian to sign as guarantor.
Since credit cards are more a necessity than a convenience in today's world, credit cards for students are much recommended, especially as a learning tool to get students prepared for life. Because of their inherent characteristics of credit, etc. lower limit, student credit cards can not lead students in a debt situation totally irreversible. Students should read all instructions provided with their student credit card. The first credit card will teach them to protect themselves against fraud with credit card, which all use their credit card, how to control spending, the benefits of membership of different etc. The sooner they learn these things the better.
In addition, the credit card for students will also help you develop a good credit rating. You should not take credit cards for students lightly. If you spend too much on your student credit card or default on your payments by credit card bill, you will not only end up paying interest on your credit card balance but also ruin your credit rating. Remember that bad credit will not only hinder your chances of getting another credit card later in your life, but also cause problems in the approval of your mortgage / car requests loans, etc.
And credit cards for students are probably a good way for students to begin with credit cards.
Posted in: Student Credit Cards
0 comments:
Post a Comment