In modern times, it will be not wrong to add Credit Card with Food, Shelter and clothing as the basic needs of life. Life seems so vulnerable without credit cards, and more or less credit cards have become an integral part our very existence. The system now is so deep rooted in glamour and flauntism that everyone is willing to pay anything to prove his/her being with alacrity. Well, nothing wrong in that, however, sometimes our own over-ambitiousness start backfiring us, and there’s no escaping that addiction.
Now, credit cards are a good way to manage your finances even when your budgets are not allowing you. However, it is often seen that credit card debts along-with the interest rates keep on mounting in case you miss to pay the monthly installments. This also has terrible affect on your credit score. In one hand, credit cards debt can pull you down in the black hole of huge financial loss while on the other hand it also hampers your credit score, which has its ill effects while you go for education loans, insurance plans and many more such things. It is because, whenever you apply for a loan, your credit score is being checked.
Nevertheless, it is absolutely impossible to ignore the importance of credit card. Therefore, we are enlisting some of the important points which will make it clear to you about the usage of credit cards while you are in college:
The burden of debt
The fact is while students are in their college life; they see the world through the prism of fun and enjoyment. And, Credit card companies see this as a golden opportunity to target this segment with offers such as gift coupons, free sign up and free lifetime plans. Students get lured with such offers and want to have a credit card with the hope that they can now do anything they want with credit cards.
Subsequently, students start using credit card to do shopping, partying, travelling and much stuff that seems cool to them. All they know is that they have to pay all the money in monthly installments. However, the situation gets worse when things get out of their hand and they are realize that they are now left with a huge lump of debt on their head.
The situation becomes worse when they come to know about the minimum payment, higher interest rates and hidden costs policies of the particular credit card service. And, since they are college going students they don’t have a regular source of income to pay the debt.
Therefore, use credit cards when its needed most, and know your limitations at the first place.
The need of credit cards for students
Why do students go for credit card when they know it’s going to hurt big time in future? Well, that’s not the case every time. It’s actually good to have a credit card at an early age as it will improve your credit score. Now, having a good credit score will help you to get personal loans, house loans and insurance policies easily in future. But, remember to use it smartly and don’t get caught in the false promises made by credit card services.
Parents play an important role
If at all you are applying for a credit card, please make sure to consult your parents and take their advices for sure. This will not only help you to move in the right direction but also you will be able to use your credit card reasonably well as you know that your parents are virtually watching you.
Hope that makes it clear to you about how to use your credit card and save yourself from falling in the slumber of credit card debts. Please make sure to pen your thoughts in the comment box below as we always value your important feedbacks. Also, share this article across your circle to let your friends know about the importance of credit cards and how to use them wisely.