Benefits of Credit Cards for College Students
- 17 Feb 2022
Having good credit is critical when making major life decisions after graduation, including applying for a mortgage, looking for a job, or renting an apartment. By getting a student credit card, you get an opportunity to start building your credit early while also reaping the rewards and benefiting from amazing offers.
Credit cards can be important tools for budgeting and spending, as long you use them responsibly. Understand that the money you access through your cards comes in a loan that will be repaid with interest. So, using your credit card recklessly can damage your credit score and cost you a lot of interest. That said, there are many things you get to enjoy with a credit card in college as long as you commit to using it responsibly. Here are some notable ones.
• Greater Financial Flexibility
Achieving financial wellness often demands that students build the knowledge and acquire the skills to manage daily finances and attain long-term goals. Credit cards can help you in this respect. Once students have mastered the fundamentals of using the cards responsibly, they can remain financially sound in the face of challenges. You can easily use the funds to pay for custom assignment help online.
Unlike cash or debit cards, credit cards allow students to use the money they don't have. When you have an emergency or a pressing need, you can use your credit to cover the cost and repay later. The amazing thing is that after using your credit to make payments, you will be given a grace period within which to pay what is owed without accruing interest.
• A Chance to Learn Good Credit Habits
One of the best things about taking a credit card in college is learning the fundamentals of credit management and score tracking. College is the best time to learn how to manage your money, create and follow budgets, and repay debt.
For most students, their departure to college is the first time they are away from their parents. As you start your journey towards financial independence, credit cards give you room to learn. However, understand that credit cards come with challenges. You will need to use them responsibly and learn to repay before interest accumulates.
Since student cards start with low credit limits, they are easily manageable, and the chances of misusing them are slim. This also allows students who are new to the intricacies of credit to learn how the cards work while making smaller and more manageable payments. They benefit from the added financial flexibility without overspending or misusing the cards on expensive and unnecessary items.
You get higher credit limits as you accumulate experience and submit regular monthly payments. Submitting your entire balance each month also helps you avoid paying interest on the credit. You get to build credit while also learning to be more financially responsible in the process.
• A Greater Sense of Security and Protection Against Fraud
As you probably know, carrying large amounts of cash can expose you to great security risks. Even having a debit card be equally risky. There is always a chance that you may misplace your money or that it could be stolen. The chances of recovering cash after it has been stolen are often slim. The money is better off left in the bank.
On the other hand, a credit card allows your funds to remain safe and accessible. The money is secure and protected. If you lose your card, you should report the loss immediately and won't be held liable for purchases you haven't made.
While the credit card is mostly safe, you need to monitor it for any suspicious activity. This allows you to detect and report any form of unauthorized or suspect activities on your card. This is particularly important if you have used the card to make purchases online, such as ordering assignment help UK.
• Access to Funds During Emergencies
Even the best-laid plans can be thrown into disarray during emergencies. You may have created a good budget that covers most of your expenses, but a sudden need or illness can leave you broke and in dire need of immediate funds. Having a credit card in college ensures that you always have a fallback plan whenever emergencies arise.
Your parents and loved ones will be more comfortable knowing that you have a dependable source of funds to turn to if something unexpected happens. Credit cards can come in handy when you urgently need money for a trip, car repair, or an emergency health intervention. You can also use the extra funds to pay for custom assignment help from professionals online.
As indicated in this article, many different ways using a credit card in college can improve your financial wellness and awareness. Being responsible with your credit card purchases and repaying what you owe on time expands your financial flexibility. It also helps you develop a stronger credit score, giving you more financing alternatives. Other than that, having a credit card gives you ready cash during emergencies. Of course, you will need to remain disciplined and responsible in your use of the card.