Does Student needs Credit cards:
Student Who are willing to apply credit cards have to know some thing about credit score,good credit every thing without the knowledge of these it is difficult for students to carry credit card.
Unfortunately you do need past credit to get credit. Going into college you’ll get all sorts of offers. Research them for the better interest rates. Be careful of late fees and short billing cycles. Make sure it’s a reputable card.First of all you should establish good credit. You won’t regret it.
The most important thing is to pay it on time. ALWAYS. Just make one small purchase a month. Then pay it off. It’ll establish a credit rating. When you graduate from college you should be eligible for a ‘recent grad’ loan for a car. That will also help with a credit rating. Just don’t spend more than you can afford to pay off. It’s easy to get in the “I’ll be able to pay with my next check” habit. Not really a good idea for most people.
Credit checks can be run on you when you set up utilities for that house you want to buy. Credit checks can be run on you when you apply for jobs, and sometimes they may request one at random after you work there. And you can be denied by all of those if there is something on there they don’t like.
Don’t let anyone fool you that you need a credit card. But you’ll find your adult life pretty difficult in the future if you try to avoid establishing credit. You’re simply not considered a good credit risk if you have no history of payments. If you plan to pay for you house and your car in one lump sum, in cash, then no you don’t need to establish credit, but credit checks will still be run on you to make sure that you are who you tell them you are.
However, even if you were so wealthy that you wouldn’t ever need a loan for the rest of your life, it still makes sense to use credit cards for the rewards they pay you (if you get one of the good rewards cards.Just make sure you do like my father told me: Use your card like you’re paying with cash you already have and pay off your balance every month. That way you avoid all interest and fees and can just enjoy the rewards.
As a college student, you have a handful of good rewards cards to choose from. A couple of the better ones are the Citi mtvU card and the Citi Driver’s Edge for Students card.Make sure you check out this rewards calculator that will calculate your rewards for the various college student rewards cards
Reward credit cards reward you when you spend on the credit card. Normally, you can collect rewards through 3 ways:
- It involves earning cash back on the card, it depends on the amount you spend.
- Next one involves giving points to the customers. They can be redeemed for gifts like cosmetics, shoes, water heater, mobiles and other goodies which the credit card company offers.
- The last method of reward is providing airmiles. Airmiles are highly popular reward, as many customers like to redeem them for free flights or flight upgrades. Whatever type of reward credit card you opt for, carefully note the amount or rate at which rewards will accrue and also read carefully other terms and conditions.
