Benefits of Using Your Credit Card Wisely

Having good credit cards for students is very important. If used correctly, these cards can certainly come in handy. The following are just some of the benefits that one can reap by making use of these cards correctly and wisely.

Credit Line

The most obvious benefit that good credit cards for students bring would be the credit line it provides to its clients. It is very useful especially when you have no cash at hand. You can purchase anything you want just so as long as you do not go over your credit limit. However, it is of critical importance that users do not neglect to pay their bills on time.

Most of these student cards have a 0% annual percentage rate (APR) during the initial introductory stage. Of course, this will change after a few months, once the initial stage is over. The APR can go from as low as 11.15% to figures as high 21.99%. Failure to make credit payments on time will certainly have dire consequences for your credit rating and your APR.

Cash Back Policy and Redeemable Rewards

Another important benefit of having good credit cards for students is the redeemable rewards. Students should always choose the card with the best rewards. These rewards can take the form of either cash or points which can be redeemed in the future.

Most companies offer a cash back policy of 1-5%. Clients are given a choice regarding what to do with their cash. They can either opt to have the cash deposited to their respective bank accounts or it can be credited to the card itself. On the other hand, the points can be redeemed in a number of ways. For instance, these points can be used to incur discounts when making purchases in the future. Some companies also have a catalog of items to choose from.

Of course, the reward system varies. It all depends on the terms and conditions of the card itself. That is why it is very important that creditors read the fine print before agreeing to anything. This principle applies to all types of loans.

Building A Good Credit Rating

Good credit cards for students can also come in handy in terms of fulfilling long term goals. For instance, these cards are an extremely effective way to build a good credit rating. One’s credit rating will be of vital importance once one gets to a point wherein one is in need of a loan or whenever one needs to get a mortgage. Using your cards wisely, even while you are still in college, actually plays a crucial role in the realization of your goals further down the road.

Additional Benefits

Other than giving you the power to make the purchases you want, good credit cards for students also offer a number of different additional services. For instance, one you have avail of their services and some companies throw in car rental as well as travel insurance to sweeten the deal. Some companies also offer an extended warranty protection for certain purchases the clients make.


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