College can be a time of learning, a time of adventure, and a time of stress. Many of those stresses come from bills. From student loans to textbooks, college life is expensive. Many students sign up for student credit cards during college.
Student credit cards are issued to any member of the academic community, regardless of whether the student is part-time or full-time, undergraduate or graduate, international students who are visiting, working or studying in the USA, Full-time school personnel or faculty and administrators who are 16 years of age or older. For those students under 18 years of age, the consent of the parents or guardian is required.
Applying for a student credit card is recommended as it can help students build their credit history that they will need in the future, especially for loans, including car, home, or even cash loans. A large number of international students and scholars find it really difficult to obtain a credit card as they lack a credit card history. In order for them to build a credit card history, they must have a credit card or at least have a history of paying debts of any kind. It is actually a frustrating situation, especially if you are in dire need of financial help. Many international students who applied for a credit card have been rejected.
How can I get a student credit card?
Before applying for your credit card, please note that this should not be a free pass to buy whatever you want. Make sure you can make your monthly payments!
1. It is always best to get a secured credit card to help you build your credit history. Ask your bank if they offer secured credit cards. A secured credit card is a type of credit card with a deposit. The deposit becomes your line of credit. This means that when you hit your credit line, you will need to cancel it or your credit card will be suspended. If you can religiously pay your monthly credit bills, you can build a more reliable credit history.
2. Student credit cards are open to students who have lived in the United States before or for some time, so an international student will still have the opportunity to obtain a credit card.
3. If you are a full-time student, you can contact your bank to request a student credit card. Your bank will handle your credit card application.
4. There are cases where your student credit card application is rejected; When this happens, you need to find someone with good credit standing to act as your guarantor.
Benefits derived from obtaining a student credit card:
Student credit cards help students learn to be responsible, especially in terms of money management. By using these cards wisely, students can begin to improve their credit scores. A student credit card is also a great way to teach students about interest and debt. With the correct and proper guidance, students will be able to get more benefits from getting a student credit card.
The Disadvantages of Student Credit Cards:
A student credit card when not used responsibly can result in a large amount of debt that follows a student even after graduating from college. The reason for this is that many times students max out their cards, especially those who don’t have money management skills have trouble understanding that a credit card is not “FREE MONEY”. It is a debt that must be paid.
Sometimes students have very little income, making it difficult to pay these credit card bills. Every month the bill keeps increasing and becomes more overwhelming. Often times, late payments and interest begin to accumulate, making it difficult for students to pay off debt. The minimum payment is simply not enough to make a dent in the problem.
Conclution
When signing up for a student credit card, remember that you and only you are responsible for paying your bills, so be responsible for your expenses. Control overspending on things you don’t need.