Student credit cards - Making the best of it
The student credit cards is a double edged sword in your hand. It could work both ways, to help your financial status or harm. Everything depends upon you. It is true that having a credit card in your name is a great feeling. It is also true that it is more fun to charge expenses to your card, rather than pay for these with cash. After all, you would want to make the best use of your credit cards.
The Difference Between Use And Abuse Of Student Credit Cards
The difference between these two words is not only two letters. When you start off, you would have no credit record, which is not a positive aspect in the books of banks and financial institutions. As soon as you graduate, you would look for a job and then a place to stay, a car and other things required setting up your own home. With no credit record, you are a 55% risk business proposition, odds than many financial institutions would not prefer. This means that you would either be denied loans, or charged huge interest rates to compensate the risk factor.
The same would be the case if you have abused your student credit cards while in college and find yourself at the time of graduation with a huge debt in your name that needs to be liquidated along with your student loans. With no credit record, you are already 55% on the wrong side; if you abuse your credit cards this percentage rises sharply and with it the possibility of your getting a loan decrease considerably.
On the other hand, if you showed that you could manage your student credit cards wisely and temperately, you would be able to reduce the risk factor and gain eligibility to decent loan offers in the adult world.
You need to decide what you want as soon as you have your credit card in your hand. Here is the opportunity to establish or destroy your credit reputation. If you want to make the best of these student credit cards, you would use them as a foundation stone for your credit record in the post-graduation world. This is hard because you would be tempted to overspend every you go when you are a student. However, developing self-control and financial discipline would serve you well in your adult life. The way you use your credit cards would influence the way banks look at your loan application when you step into the adult world.
Student credit cards.com @ September 30, 2008