Having a credit card is not only beneficial for working adults, but it’s also helpful for students. When you’re at the right age, it’s also time to start using a credit card not to buy all those fancy bags and jewelry, but for other reasons. Though you can do that, a credit card can do a lot more than help you shop for luxuries.
If you’re wondering how a credit card can help you as a student, here are your answers:
1. Build Your Credit Score
As a student, your focus may be getting high grades and maintaining excellent school records. That’s great! But aside from having a good transcript, you should also start building your credit score as early as possible.
A credit score is a rating that shows how creditworthy you are based on your credit history. In the future, you’ll need a high credit score to apply for loans, housing, and even job applications.
With a credit card, you can make your credit score high as long as you keep good-paying habits on your monthly credit card bills. That’s why you should choose the best credit card provider for your first credit card. You can look for banks that don’t charge an annual percentage rate (APR) for your introductory period. However, you must also know how much they charge after the introductory period. The lower the APR, then the lesser the fees you need to pay.
2. Learn Good Personal Finance Management
Now that you’ve got a goal by using your credit card, you’ll also develop your good financial management habits. Here’s how a credit card can help you manage your finances at school:
- With credit card bills, you can track your spending habits. Since all your transactions are recorded, you can verify where your money is going.
- When you keep track of your expenses, you’ll know what consumes your money. If they’re trivial things and you can live without them, then it’s time you stop buying them. For instance, if your transaction history shows that you’re spending more on weekly out-of-town vacations, you may need to decrease the number of times you go on these trips.
- Also, you can fix your budget by using your credit card. Say, if you’ve got a budget for all your expenses, you must also set up a monthly spending limit via your credit card. That way, you’ll know how much credit card interest you’ll pay each month.
3. Help In Times Of Emergencies
Another great reason to have a credit card when you’re a student is to deal with emergencies. Since you can pay anything using a credit card, you can have a back-up solution when you need to spend money in times of crisis or emergency.
For instance, if you’re studying away from home and you need to go home immediately, you can book a flight with your credit card.
However, you must discipline yourself and list down possible emergencies in which you can use your credit card. By this, you can eliminate the possibility of swiping your cards in times of cash shortage.
4. Earn Rewards And Cash Backs
Not only can you use your credit card in times of distress, but you can even earn rewards and cash backs, too. Most credit card providers offering student credit cards give rewarding points for every purchase. Some provide travel rewards like discounts on flights or hotel bookings.
For instance, if your credit card provider is in partnership with online sites, you can earn bonus points that you can redeem for future use. Some credit card providers also give rewards when you use your credit card when dining out.
When you accumulate your points, some credit card providers give cash backs that you can use to pay for your next purchase.
5. Use For Convenience
Lastly, you can use your credit card for convenience. When you’re out shopping, you won’t have to bring your bulky wallet since you’ve got your credit card to pay for the bill. This helps especially when you need to buy something outside your dorm as bringing your credit card is enough.
Moreover, with a swipe of your card, you won’t have to wait for the cashier to count your money nor give you any change. As a student, every second may be vital, especially when you’ve got too many projects to finish.
Conclusion:
Even if you’re a student, you’re entitled to use and enjoy the benefits of a credit card. Whether for present or future use, a credit card does it all. While conveniently shopping in the present, you’re building a credit score for your future use. You’ll learn how to manage your personal finances well, too.
For more great college tips, check ou the other blogs on College Basics.
