For many people, full-time studying at college or university often means that money is in short supply. This article aims to give an overview of student credit cards and to show some ways in which bad debt can be avoided when in full-time study.
Credit cards which are aimed specifically at students may sound like a bad idea to some people, however, for some they can be a lifeline which enables them to financially survive full-time study. Studying away from home can be particularly expensive, with rent for accommodation, bills, travel expenses and the cost of course materials soon mounting up. It could mean the difference between being able to afford study and it being out of reach financially. It's also a good thing for building up a good credit history early on in life. This could prove to be useful later in life when applying for a mortgage for example. It is unlikely that students would qualify for a normal card, as they would usually have insufficient history to get one. Many universities offer their own, and often the applicant will be pre-approved if studying at that university. An advantage of student cards when compared to ordinary ones is the lower spending limit. This means that you are less likely to end up with bad debt.
To avoid bad debt and its harmful effect on your financial future, it's essential to make the card payments on time. Late payment could mean future problems getting loans or mortgages, and most people will need these at some time in their life. Try to live within your means and avoid adding non-essential things to your balance, for example big restaurant bills, expensive nights out partying etc. Do your best to stick to paying for only the essentials such as groceries, bills, and books.
If you have a student loan in addition to a card, it's important to remember that at some point you will have to pay back the loan as well as the card's balance. It's a good idea not to stretch yourself too far money-wise, or you could end up with bad debts.
If you use your common sense and judgment when handling your finances, and avoid excessive spending on non-essential items, it's relatively straightforward to avoid money problems. If you are having difficulty meeting your monthly payments and don't spend on items which aren't essential, it could be that you need to find a source of extra income such as a part-time job. If this is the case, do try to find one that won't interfere with your studies too much.
Visit the author's site consolidatecreditcarddebtsguide.com for more information about student credit cards.
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