Student credit cards are the best way to manage money from a young age. It helps you to make proper arrangement of your money while still in college. They also allow you to borrow money without any hassles and are one of the best financial tools for students. Having said that it is advisable to choose these cards only if you are confident about your money management skills and have strict control on overspending.
Working of student credit cards in detail:
The cards work just like standard credit cards with an added advantage of extra 0% interest free time. Most of the companies offer 12 months of interest free period. Also, your purchases will be protected by payment protection law. Most companies offer rewards and student specific benefits and discounts. The cards come with a lower credit limit and so, may not allow students to make big purchases.
How to find the best possible student credit card?
For this, one needs to shop around and check companies that offer these cards with the lowest interest or a longer interest free time. You can use FreePriceCompare.com’s smart search tool to find the card that qualifies you for the student card. You should use this tool before the formal application for the card. This will help you avoid rejection as a NO from companies has a big impact on your credit report. It will cause you more trouble while making further new applications as well.
Criteria for student credit cards:
It varies with the providers so, check the requirements you need to fulfil before taking the plastic money in your hand.
The cards are tailor made for new comers in the field of credit cards. Some of them work more like credit builder cards and help one create a good credit history.
Some of them need an existing student current account with the card provider. If you have one, then you have an additional benefit of quick approval with the best interest rates.
Pros of student credit cards:
Builds the credit history
Provides purchase protection
Quick support for emergency payments
Longer interest free time
Extra incentives like rewards and voucher schemes
Cons of student credit cards:
High interest charges on balance money
Modest credit limit
Expensive cash withdrawal
May create bad credit ratings
With the above mentioned details, one must be able to decide whether to opt for a student card or not. On which card to choose or to find your qualification for a particular card, check FreePriceCompare.com. You can also call us on 02034757476.