Why You Need A Student Credit Card

Why You Need A Student Credit Card
by: Studentcreditcards.com

Owning a student credit card affords an individual luxurious those who pay with cash don’t necessarily have. To begin, using a credit card to make a purchase is hassle-free in comparison to paying by check or cash. In addition, when you carry a credit card around, it limits the amount of cash you have to keep in your purse or wallet. A credit card also simplifies the transaction process and allows the user to make Internet purchases.

College student credit cards are also great to have on hand in case of emergency. What happens if your car breaks down and you to have it fixed, but don’t have the cash? Having a card in case of emergencies provides a security blanket that can get you through most financial crunches.

When utilized responsibly, a student credit card can be used effectively to budget the consumer’s spending. Credit cards also let you cash in on special offers and sales when you otherwise wouldn’t have the cash. Along the same lines, if you have to go on a trip and accrue business expenses that will later be reimbursed, you can use the card to carry the expense until you receive funds.

Student credit cards also boast a certain amount of security. A lost credit card cannot be used by anyone. The card owner can even report the card stolen and have it turned off before it is used. If the card is used illegally, the card issuer cannot legally hold the owner responsible for the unauthorized charges. If you lose your cash, it is most likely gone for good.

While the advantages of owning a college student credit card cover a gamut of situations, benefiting from these advantages requires responsible spending. For example, it is a good idea to pay off the credit card debt on a monthly basis. Failing to do so will cost more money in the long run and take up precious emergency spending dollars.

In the event of your application for credit is denied because of “insufficient credit file” and you are a full-time student, you can contact the lender and ask if they are aware of your student status. In certain cases, companies will extend you a student credit card offer with a lower than normal credit line to get your student credit history underway. As you pay your bills on time, the company will then slowly increase your credit line accordingly. In other words, you are rewarded for responsibly managing your credit.

Lastly, and perhaps most importantly, all consumers are protected under the Equal Credit Opportunity Act that states financial instructions must make fair decisions when it comes to determining in an applicant is creditworthy. An individual’s color, race, religion, fender, ethnicity, age, and marital status should not affect their ability to gain credit.

To learn more, or to compare student card offers visit www.studentcreditcards.com

Budgeting for Students

Budgeting can be especially hard for students. There is so much new responsibility in their lives and money is a big one. Many students have never been in charge of their own finances before and they probably haven’t had much guidance in this area. If your child is going off to college or is already a student, you may want to educate them on financial matters.
Most adults know what budgeting is all about, but it may surprise you to know that most students going into college have no idea what that word actually means. You know as a parent how hard it can be to stick to a budget and you should expect that your college student will struggle with it as well. Keep in mind that this may be the first time that they have to exhibit self-discipline. The first step is to simply explain what budgeting is. Budgeting is basically a plan that lists all of your money coming in and money going out. Remember that everyone learns differently, so you may want to also write down a mock budget plan for them. Getting them to write it is also a good idea. Once you get the idea of a budget into their heads, then you can move on to the next step.
Next you want to make sure that all sources of income are accounted for. Student loans, income from their job if they have one, scholarship money, allowance from their parents or family, and any other benefit monies they may have coming in. At this point, most students will think that the amount of income looks great. They probably haven’t had this much money at their disposal before, and may suddenly get the itch to go shopping. A big mistake is for students to use the amount coming in as an excuse to spend five dollars here and there all month long. They won’t even know what happened when the money is gone. This is why it is very important to accurately track expenses in the next step.
Staying on top of money spent is a very hard discipline to learn. First they need to make an accurate list of their expected expenses. Books, bills, cafeteria, groceries, school and personal supplies, gas and don’t forget recreation. Going out with friends is an important social part of their lives and they need to budget for it. Clothing is something that they will definitely need as well. Doctor visits and prescriptions need to be planned for. There are lots of little things that you may not think of yet, which is why the next section is important as well.
Include an unexpected expense section in your child’s budget. Here is where they should note any extra expenses that came up during the month. Oil changes, auto repair, an emergency room visit, replacing a cell phone, anything that they didn’t expect that ended up cutting into their budget. Writing it down will help them look back in future months and determine if it’s something that could happen again that they should plan for.
Keeping up with the budget will most likely prove challenging for most students. Creating a separate savings account will help separate money that needs to be saved from disposable income. Taking out cash instead of using a debit card is a very effective way to stick to a budget. Encourage your child to leave their debit card at home when they go out with friends and only use the cash that is accounted for in the budget. You may want to educate your child on the importance of being responsible with credit as well and help them look for student credit cards that could help them out of a real emergency while they are away at school.

About the Author: Mary Wallace, a retired teacher, is the editor for studentcreditcards.com, a provider of student credit cards and information plus consolidation of student credit cards. For more information, please visit http://www.studentcreditcards.com

Are Students Good Credit Card Customers?

College is usually that time in your life that comes between childhood and adulthood. For most, it acts as a buffer zone between being under your parents’ protection and being totally on your own. Your parents may bail you out now and then, but you won’t be able to rely on them forever. The time to start taking care of yourself, physically and financially, is now, while you’re in college. Sometimes student credit cards are the first step towards learning financial responsibility.
It used to be that very few students had credit cards. It was considered a privilege and not a right. Credit cards were very hard to obtain due to the lack of credit history, income and responsibility. Now days, credit card companies are realizing that college students can be their best customers. Student credit cards can be very easily obtained and require little steady income and little or no credit history. Credit card companies target students for many reasons. First off, they know that students generally haven’t learned how to manage their finances effectively, and they’ll make a lot of money off of late fees and unpaid balances. Second, students are generally unaware of what is a good interest rate. They may not take the time to read and understand all of the fine print in the credit card agreement. They may not notice that they are being charged certain fees, such as annual fees.
Students are more easily convinced to open credit card accounts. Credit card companies will set up booths with free t-shirts and other give-aways that entice students to apply for a credit card. You may not have the self-control that it takes to only use your credit card for real emergencies once you have it in your hand. Credit card companies see you as an easy target. They know that you most likely won’t take their information and then go research other student credit card offers before applying. They also know that historically, students have used credit cards for clothing and nights out with their friends. This habit is a hard one to break and you can get yourself into debt that lasts for years beyond college. Students make loyal customers and usually keep using the same card for a very long time.
Student credit cards can be very useful and help you through tough times. They can get you out of a financial emergency when you have no other options. Most importantly, you can build a good financial history by using your student credit card wisely and responsibly. Make all of your payments on time and always pay more than the minimum. Shop around before applying for any student credit cards. Look for the lowest interest rate, consider all fees and consider the card that you choose an emergency card only. Building your credit is very important at this age, but you can also really hurt your credit and pay for it for years to come. Be smart and learn financial responsibility by being responsible. Don’t take risks with your credit and stay on top of your budget. When you graduate, you’ll remember the good things about your college years as opposed to regretting the mess that you’ve made of your credit.

About the Author: Mary Wallace, a retired teacher, is the editor for studentcreditcards.com, a provider of student credit cards and information plus consolidation of student credit cards. For more information, please visit http://www.studentcreditcards.com