It is essential for your child to learn financial discipline early in life. Student credit cards can help them to not only become financially independent but also help them to manage their finances properly. Here are four fantastic ways for students to get the best out of their credit cards.
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1. Build up a credit history
Today, students start their career with the burden of repaying their education loans. Yes, the education loan providers give a moratorium period for the repayment, but the obligation to repay is always with the student. Hence, students start their career with a handicap. The education loan amount affects the credit rating of the students. Therefore, it becomes difficult for them to apply for other loans such as personal loans, housing, and vehicle loans during the pendency of the education loan. Students have to establish a repayment record to improve their credit ratings. Using student credit cards can help them to develop a good repayment record thereby enabling them to build up a good credit history.
2. Make purchases
Credit cards allow you to purchase necessary items online as well as offline. All e-commerce websites have options for using credit cards for payment. You can also use credit cards to pay your utility bills, filling of gas at gas stations, pay restaurant bills, purchase movie tickets, and so on. The list is an endless one. However, you should note to repay the credit card bill on time to avail the benefit of the interest-free period available on every credit card. Repay your credit card bills on time before the due date to build up a good credit record. You also learn to exercise financial discipline when you use credit cards.
3. Take advantage of cashback and discount offers.
Credit card issuers offer attractive cashback offers and discount incentives for using their credit cards. It allows them to make further purchases on their credit cards. You also get reward points on credit card usage. Accumulate these reward points so that you can redeem them for beautiful gifts. Students can also avail discount offers that they can use at selective restaurants, buy electronic goods like laptops and smartphones, purchase movie tickets, book hotel rooms or arrange for travel, and so on. Students also get discount offers for in-app purchases. These cashback and rebates help you to save money. However, you should ensure to pay your bills on time as cashback and discount offers are usually not available for defaulters.
4. Avail the benefits of purchase protection
Most of the student credit cards come with a purchase protection feature. Such a feature provides for purchase security and extended warranty insurance if the products you purchase turn out to be defective/damaged within a specific period usually 90 days from the date of purchase. It also offers protection against theft and burglary for a similar period. The warranty insurance can also help you in getting reimbursement, repairs, or replacement. Some cards come with extended warranty insurance that can also last up to one year. Students benefit from such features because they love to purchase electronic goods like smartphones, laptops, playstation devices, and other appliances. This additional protection would not have been available if you had used cash to pay for your purchases. Credit cards also allow you to repay the amount through EMIs thereby reducing the burden of making full repayment at a time.
We have seen four fantastic ways for students to get the best of their credit cards. Student credit cards come with other attractive features like accident insurance, zero percentage interest EMIs, cash advance facility, and so on. Understand the benefits of using a student credit card and ensure that you pay the bills on time. You develop financial discipline and build up a good credit history. To know more about the student credit card benefits you can follow the link below: