Completing a Student Credit Card Application – The BenefitsBeing in college and away from home can be expensive. Extra costs for supplies, transportation, organizations, etc. pop up unexpectedly and can strain a student’s fixed income. For this reason, many students choose to apply for student credit cards which are easier to acquire and which provide a safety net for these emergency expenses.
Completing a Student Credit Card Application – The Benefits: What to Know Before You Apply for a Student Credit Card
Despite these benefits, credit cards aren’t all perfect. Before completing that student credit card application, students must be aware of some basic facts.
Obviously, credit card must be repaid but many people, including students, may not realize how quickly the cost of an item can increase because of interest. If a student charges $1,000 on their credit card at 18% interest during their education and paid $25 per month towards the balance, it would take 62 months – just over 5 years – to pay off the debt and the student would actually be paying over $538 in interest.
For this reason, students should be encouraged to pay off their balances in full every month, to never charge more than they can afford, to use their credit cards only for emergencies, and to pay more than the minimum payment whenever possible. Otherwise, a student may graduate from college only to find themselves engulfed in debt. To learn more before you apply for a student credit card, read “Credit Cards – What You Need to Know” or “The True Cost of Paying the Minimum“.