Credit cards for students is an American way of life.
The estimated percentage of households that utilize a credit card of some kind is determined to be eighty five percent. Listed below are some of the major pluses for utilizing a credit card.
Handiness; this is undoubtedly and most obviously the best advantage for using any kind of student credit card. Reason is there no need for digging around for cash or a last minute race to the bank before closing. It’s just oh so quick and easy to hand the clerk plastic. No hassle, quick and easy – something every student out there is looking for. A huge percentage of retailers in America accept some sort of card.
Credit Score – Using a credit card according to the terms of use will definitely help with future credit. Things you’ll want and need at a later time in life; things such as buying a home, car or gain a larger credit limit. Every month your credit report is updated with payments that are made. Banks and lending institutions view your credit history every month and look at reports to see that you’re staying with-in the guidelines of the terms of use set down by the lending companies or bank. This will go a long way in determining your credit score, paying off the balance each month is paramount for building a good credit score.
Monthly Budget – Having a budget is vital and will be extremely helpful in maintaining your budget. The issuer will send monthly statements that will show all your charges for an assigned monthly time frame. In most cases you can choose the cut off time that best fits your cash flow. You can really use this to your advantage. If used wisely you can realize an extra 30 days before an item you purchase is due for payment.
Protection; another excellent reason for using credit card; if stolen you’ll only be responsible for the first fifty dollars. However if reported stolen with-in the first 24 to 48 hours there will not be a charge of any kind. Once the card is stolen a replacement card can be in your hands within 48 hours and at most a week. Unlike when cash is stolen you have no recourse and issuing new cash is not an option. You’ll need to check with the bank to get an explanation of the terms.
Other ways student credit cards can offer protection is with merchants who will not honor a refund request. It’s extremely easy to dispute the cash transaction if you paid by cash. On the other hand when using a credit card there is a paper trail and indisputable proof of purchase. There are many advantages to having a card that can and will give you piece of mind. The most important thing you can take from this guide is use it responsibly and enjoy the many benefits a student card has to offer you.