Credit cards have emerged as one of the best payment methods in the world today, owing to the amount of convenience they offer to consumers. Additionally, credit card companies are constantly evolving and providing discounts and special offers to customers, who would be unlikely to find these elsewhere or through any other payment mechanism.
Among consumers today, students are the most stuck for finances as they have to balance their educational and social requirements and the associated costs. Credit cards for students are thus being tailored according to such needs. Credit cards for students offer a range of benefits that make a student’s life much simpler and significantly less hassle.
The MNSSBY Scheme helps students pay college fees, similar to other credit cards students can get. However, even as we move on from the question as to can a student get a credit card, we move into the bigger question of how students can best use their credit card. Student credit card schemes such as the MNSSBY enable students to get loans and other benefits that students must carefully and judiciously use.
Read on to learn a few tips that you must keep in mind even as you avail the different credit cards students can get.
1. Understand your Credit Profile
Having and using a credit card significantly impacts your credit profile, which will further impact the other cards for students you can avail of. Based on your spending and repayment, your credit profile will continuously change and it is important to remain vigilant of the same. Firstly, learn your credit score and then understand the different factors that will impact the score and how you can improve it too.
2. Analyse the different Credit Cards Students can get
It is important to know your options before you opt for a single credit card. To ensure that you get the best card for students available, browse through the options available to you. Different credit card companies offer different benefits and special offers for students, and it is important to learn which will work best for your requirements. Depending on the use you have for the card, you should be able to identify student credit cards online that meet your specific requirement.
3. Learn about Card features to Avoid
While a credit card offers several advantages and benefits to its customers, there are also several features that you must ideally avoid opting for. For instance, some credit cards offer rewards that may seem appealing at first but they also come with a binding agreement that you are required to pay off your dues on a monthly basis to avail of these rewards. As a student, if you are unsure of whether you will be able to repay all your expenditure on a monthly basis, it is best to avoid cards that bank on that to offer you rewards.
4. Pick the best Interest Rates
All credit cards come with an interest rate on your spending, but the rate of interest differs from card to card. This is one criterion that you may want to spend some time browsing as you look for student credit cards online. The rate of interest will define how expensive it is for you to repay your bills and the amount that you have spent via the credit card.
If your rate of interest is very high, it will become quite difficult for you to repay your spending in time. It is best to look for the lowest rate of interest available in the market, as this way you can curtail the amount you pay for using the credit card. Even while browsing through student credit cards online, check for offers on Finserv MARKETS, where you may be able to avail of offers specially crafted for you.
5. Make timely Payments
While availing of a credit card, you will be able to decide on the frequency of payments you will be making on your credit card. Regardless of the frequency you pick, make sure to make these payments then. Not making your payments in a timely manner will severely impact your credit score and could also result in you being unable to avail of a fresh credit card, even later in life. Opt for a repayment frequency that is easy for you to manage, and make sure to make those payments in time.
Credit cards for students are a great tool to manage their finances comfortably. However, it is also important to remember that a credit card must be used responsibly. Student credit card schemes such as the MNSSBY, which offer student credit cards, are rapidly gaining popularity as they allow students to manage their finances themselves, and ensure accountability.
Hurry!! If you don’t have a credit card yet, then apply for a credit card today!!
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.