Student Credit Cards - University & Collages

Credit Cards in the USA

Student credit cards could be a very convient way to pay for anything from plane tickets to course books or just lunch at the student cafeteria. It is not only an easy way to pay for your expenses but it also offers several benfits including extra security (you can get your money back) and they will start build your credit history (makes it easier to borrow money later if needed). All these benefits does not come without some risk. The benefit of credit cards (they are easy to use) is also the greatest risk to you. If you cannot control your own spending, you will probably end up with a big bill at the end of the month. You can read more about some of risks here.

Students & Credits Cards

Almost everywhere you go, the main credit cards: VISA, MasterCard, and American Express are accepted. It is not supprising that United States is among the countries with the most credit cards in the world. For instance, 80% of undergraduate students have at least one credit cards.

International Student could find it difficult to get a credit card when first arriving to the United States. The reason is that as an international student you do not have a credit history yet. For newly arrived students, you may want to try using a secured credit card. These cards offer some of the conveniences of a credit card, except that you secure your credit card with a deposit that becomes your credit line.

Getting a Credit Card

Signing up for a credit card is something that every student starts thinking about once they hit university or college. Not only are students bombarded by the different banks on campuses selling the virtues of their respective cards, they are also receiving advertisements on a weekly basis in the mail.

It is important to first figure out if you should get a credit card, and how to manage it properly if you do get one.

Great advantages to getting a credit cart for a student:

1) Credit Rating

It is very important to build up your credit rating. If you decide to stay in the United States after you are done with school, your credit rating will help you to get a personal loan at a bank, a business loan, taking out a mortgage, car financing, or even simply to get a credit card. A credit card will help you establish that credit line. Banks have much easier policies about issuing credit cards to students than unemployed graduates, so you might want to take advantage of their policies while you are still a student. However, getting too many cards will actually damage your credit rating. Make sure you never own more than two or three cards at any one time, since banks will tend to view this as you "over-extending" yourself.

2) Cash Flow

If you want to make a sizeable purchase and you do not have the cash available at that particular moment, a credit card is a godsend. You can still make your purchase and pay it off in installments whenever the money comes in. Just be aware of the high interest charges. Also, carrying a balance on your credit card (not paying the full amount) can actually damage your credit rating.

3) Convenience

There are some things you cannott do without a credit card. A car company will usually ask you for your credit card number when renting vehicle as a safeguard and a lot of video stores do the same. Major credit cards are accepted most places which means that you do not have to carry around cash. It is not as bad if you loose your wallet with your credit card in it compared to carrying around $100 in cash.You can always get the credit card replaced but the cash will probably be gone forever.

4) Emergencies

If you get into an emergency sitation and need money quickly, a credit card could be invaluable. Many people keep a credit card for this purpose just in case something happens.

5) Membership has its…

Some cards have some great benefits. For example travel insurance might be an automatic benefit if you pay for your trip on your card. You may be fully covered full or at least up to a certain amount by the card which saves you from purchasing extra insurance. Then, there are the infamous Air Miles, and tons of other promotions. Take advantage of the privileges.

6) Increased Access

More and more transactions can now be executed on the phone or on the Internet. You can find some great deals on airfare, books, computers, concert tickets and much more. If you want to take advantage of these specials, you will have to do so using a credit card. Some people are still weary, not without reason, about releasing their credit card numbers for fear of all-too-common fraud. However, if you’re dealing with a reputable company, the security measures in place make Internet and phone purchases as safe as live purchases.

The Risk of Credit Cards - What you should think about

Even though credit cards could be a very useful tool for students, you must also consider some of the downsides and risks. Click here to read more about the risks.

Student Credit Cards - Advantages