College can be a time of learning, a time of adventure, and a time of stress. Many of those stresses spring from bills. From student loans to textbooks, college life is expensive. Many students sign up for student credit cards during college.
Student credit cards are granted to any member of the academic community regardless of whether a student is part time or full time, undergraduate or graduate, international students who are visiting, working or studying in the US, school staffs either full time or part time faculty and administrators who are ages 16 year old and above. For those students who are less than 18 years of age consent from the parents or the guardian is required.
Applying for a student credit card is advised since it can help students in creating their credit history which they will need in the future especially in obtaining loans including car, housing or even cash loans. A great number of international students and scholars find it really difficult to obtain a credit card since they lack a credit card history. In order for them to build a credit card history they should have a credit card or at least have a history in paying off debts of whatever type. It is actually a frustrating situation especially if you are badly in need of financial assistance. Many international students who applied for a credit card have been rejected.
How can I obtain a student credit card?
Before applying for your credit card, keep in mind that this should not be a free pass to buy anything you want. Make sure you will be able to make your monthly payments!
1. It always better to obtain a secured credit card to help you in building your credit history. Inquire in your bank whether they are offering secured credit card. A secured credit card is a type of credit card with a deposit. The deposit becomes your credit line. This means that when you reach your credit line you need to pay off or else your credit card is going to be suspended. If you can religiously pay your monthly credit bills then you will be able to build a more reliable credit history.
2. Student credit cards are open to students who have lived in the United States before or for some time so an international student will still have the chance to obtain credit card.
3. For full time student you may contact your bank in order to apply for a student credit card. Your bank will handle your credit card request.
4. There are cases when your application for a student credit card is denied; when this happens you need to find someone who has a good credit standing to act as your guarantor.
Benefits derived from obtaining a student credit card:
Student credit cards help students to learn how to become responsible, especially in terms of handling money. By wisely using these cards students are able to start boosting their credit scores. A student credit card is also a great way of teaching students about interest and debt. With correct and proper guidance, students will be able to gain more benefits from obtaining a student credit card.
The disadvantages of student credit cards:
A student credit card when not used responsibly can result to a great amount of debt that follows a student even after he or she graduated from college. The reason for this is that often times students max out their cards especially those without any money managing skills have the trouble understanding that a credit card is not „FREE MONEY“. It is a debt that needs to be repaid.
Sometimes students have very little income which makes it difficult to pay on these credit card bills. Each month, the bill continues to rise and become more overwhelming. Often, late payments and interest begins to accumulate, making it harder for students to repay the debt. The minimum payment just isn’t enough to put a dent in the problem.
In signing up for a student credit card remember that you and you alone are responsible for paying your bills so be responsible in your expenses. Control yourself from overspending on things that you don’t need.
There are a lot of business owners who want to accelerate the growth of their business, but it's usually dependent upon having a little bit more ready money. With this, they would be able to advertise more, replace old or buy new equipment, increase their inventory in order to sell more items, etc.
Some business owners take matters into their own hands by funding these expenses from their personal stash. However, using personal credit cards for business ventures is a risky-business since you assume total liability. If your company, God forbid, is ever sued or goes under, you risk losing your personal possessions and the good credit rating that took you years to build.
Now what if there was a way to free up some of that needed money you are currently using to support your business, by matching some of your expenses with items your business is already buying on a regular basis? Well, there is and it is in the form of business credit cards.
In other words, if you dish out $500 cash each week on realty supplies to make repairs on your properties, but now instead you make those same purchases using business credit cards for just one month, that would temporarily free up $2000 cash from your usual operating budget.
Of course, you are responsible to pay the balances on any business credit cards you receive, but that would be over a period of time giving you enough occasion to make a profit from the $2000 utilized on the business credit cards before the first payment is due. Are you seeing how having business credit is to your advantage? Let's go a little further.
Business credit cards are a pretty darn quick way to get resources for short-term needs and at the same time they can increase your business's purchasing power. But it has to be used economically and not to go all out on spending sprees just because it is available.
Other advantages include:
• Business owners with a limited credit file or credit history can apply without providing the stringent requirements of traditional banks.
• It is much easier to make purchases online and make cash withdrawals from these credit lines.
• Bookkeeping becomes simplified with the use of monthly statements and year-end statements to track expenses and pay taxes.
• Unlike installment loans, business credit cards offer discounts and rewards that can be used toward air travel and the like.
• Business credit builds credit. By paying on time and paying more than the monthly minimum fee, incentivizes lenders to increase credit limits and lower interest rates.
Like with all credit, business credit does have certain qualifications for approval:
• 720 credit score
• No bankruptcies
• No foreclosures
• No late payments in the past 24 months
• Possession of a credit card with a $5k limit.
Building a good strong business credit report allows you to stop relying on your personal credit to support your business endeavors. It also helps you to qualify for future financing your company may need from traditional lenders.