Student Credit Cards – Make Use, But Do Not Abuse!

If you had started assisting to a college, or will be assisting soon, surely you have already evaluated all financial aids that could be helpful to your new, and a little more complicated, economical situation.

We have all been there, I can tell you now that it is possible to go through college, finance your education and left with any or just a small debt, and also with a good credit record.

A good credit history is, after your education of course, the best thing you can get while you are still a student. Doing this you will open the door to credit. If a house, a car, a boat or a long trip around the world are some of the things you will want to have in your future, your credit score will be the magic wand that will help you to convert these desires into real things. The better your score, the higher the credit you will have access to, so do not miss any chance to improve it. Even if you have already made any mistakes and you have a not so good credit record, it is possible to revert that situation by doing some wise moves and student credit cards are a fast and accessible tool.

What Credit Card Suits You Best?

There are three kinds of credit cards. They can be prepaid, secured or unsecured. Even when student cards are meant for students, they work the same as normal credit cards, so these groups apply as well for both, normal and student credit cards.

With prepaid credit cards you buy a credit card with a predetermined amount of money that will be available to use for a limited period. This amount will be your card’s limit. After you use it, you can either charge money again to the card and continue with using it or just wait to the card’s due date, and then it will be canceled. These credit cards can be used anywhere a credit card is accepted, but you will not be able to buy within monthly installments with these kinds of credit cards, your purchases will have to be done in one payment.

Secured credit cards require you to deposit a certain amount of money into an account. This amount works as your credit limit and also as a secure for the financial company, just in case you do not accomplish with the payments.

Both, prepaid and secured credit cards are a good option to enter in the financial world if you never had a credit card, or if you do not feel sure enough with doing payments and managing credit.

An unsecured credit card is a common credit card product, in which the financial company sets an amount of money as your credit limit, and you just have to make sure to accomplish the monthly payments.

Make Use, But Do Not Abuse!

As a student, you will have the possibility to access any of these cards, since student credit cards have less requirements than regular credit cards and financial companies know that young people are both a good market and loyal customers. Most of people keep their first credit card for many years.

So, if you are one of those people who feel tempted to complete every form that is presented to you, try to refrain from doing it. Keep your credit cards’ number as low as possible, one or two will be perfect to finance your education expenses and to stay out of the possible debt that will surely come with more credit cards in your hands.

Go Ahead And Start Your Credit Record

Once you have decided which kind of credit card is better for you, use them wisely. Remember that the fact that you have a high amount of available credit, does not mean that you actually own that money. You will have to pay back every cent of that credit limit that you use.

Always be careful with your expenses and try to accomplish with your credit card’s payments. Secured and unsecured credit cards will impact directly in your credit score. In the other hand, prepaid cards do not have any importance to your credit records.

Being young and do the right thing is possible. I am not saying this will be easy but it IS possible.

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