Student Credit Cards A Few Myths Cleared
Student Credit Cards: The majority of people who have a student credit card feel that they have a magic wand in their hands; one that allows them to make their wishes comes true. In a way, this is true. However, these dreams that come true happen at a price, which is often very heavy to pay. This is one of the myths that surround student credit cards for which many students are so anxious to apply and obtain credit cards. However, is this really true? There are many myths that are circulating around; here are three of the most common ones:
Myth No 1 – the more student credit cards you have the better would be your credit records. This means that in order to ensure that you build healthy credit record by the time you complete your studies, you would be labeled as a good investment.
The truth – while it is true that normally a good number of cards are a good sign, if and only if they are not all maxed out. The overall total of all the student credit cards credit you obtain would give the credit bureau the picture that you a very trustworthy person when it comes to loan; in this way you could get some excellent rate of interest when you look for mortgage or any other type of loans.
Myth no 2 – paying the minimum balance due would help you maintain a comfortable credit profile.
The truth – paying the minimum balance for any student credit cards bills would actually lead you to insolvency. When you pay only the minimum due, you allow the majority of the money you spent to attract interest, which is compounded when it comes to credit cards. This means that you need to be prepared to pay the outstanding balance in full, instead of the minimum due if you want a healthy and manageable credit as offered by the student credit cards.
Myth no 3 - student credit cards are a huge risk in case these are stolen, therefore you feel it is better that you do not take this risk at all.
The truth – your liability with the stolen cards ends the moment you have put a call through your credit cards provider and inform them about the stolen cards. In other words, once you have intimated the company that your student credit cards are stolen, the providers would (and should) immediately release you from any responsibility towards the ensuing credit cards bills.
Student credit cards.com @ October 9, 2008