|
Being
in college and away from home can be expensive. Extra costs for
supplies, transportation, organizations, etc. pop up unexpectedly
and can strain a student's fixed income. For this reason, many students
choose to apply for student credit cards which are easier to acquire
and which provide a safety net for these emergency expenses.
Completing
a Student Credit Card Application - The Benefits
To apply for a student credit card, students generally do not have
to meet specific income requirements. As long as they can prove
they are a full-time student, they can usually get a credit card,
although most credit limits are around $1,000 or less initially.
While this lack of requirements may be viewed by some as a bad thing,
it does provide students with a chance to establish a positive credit
history. Otherwise, they would encounter problems after graduation
when trying to take out a loan or acquiring a first credit card.
Another benefit is that students will feel more independent. Instead
of calling their parents for extra money when necessities arise,
the students can use their credit card to cover those expenses on
their own.
What
to Know Before You Apply for a Student Credit Card
Despite these benefits, credit cards aren't all perfect. Before
completing that student credit card application, students must be
aware of some basic facts.
Obviously, credit card
must be repaid but many people, including students, may not realize
how quickly the cost of an item can increase because of interest.
If a student charges $1,000 on their credit card at 18% interest
during their education and paid $25 per month towards the balance,
it would take 62 months - just over 5 years - to pay off the debt
and the student would actually be paying over $538 in interest.
For this reason, students
should be encouraged to pay off their balances in full every month,
to never charge more than they can afford, to use their credit cards
only for emergencies, and to pay more than the minimum payment whenever
possible. Otherwise, a student may graduate from college only to
find themselves engulfed in debt.
Student Credit Card
Application - Additional Information
To
learn more before you apply for a student credit card, read "Credit
Cards - What You Need to Know" or "The
True Cost of Paying the Minimum".
If you are interested
in learning more about student credit cards and their dangers, then
you may want to read some of our other articles, such as "Student
Credit Cards" and "College
Credit Cards"
|
