Those people who enter the university usually receive many offers from the lenders to receive the student`s credit card. After entering into the educational institutions the students become more independent and they have to make their own decisions and to be responsible for their actions. Besides, they have to earn they own money and cover their expenses. When the students receive their first credit card, they also establish their credit history and credit score and they must have serious attitude to it, as the credit history can influence a lot on the future of the person. According to the statistic, majority of the students use the student`s credit card for such needs as medical emergencies, cashes transactions, traveling and accommodation. Besides, 77 % of the college students use the credit card for the personal expenses and 67 % - for emergency and occasional expenses.
Some lenders do not have a desire to give the credit cards to the students, as they do not have employment and stable income. Because of it usually the interest rates on the student credit card agreement are very high and other terms are also not very advantageous. Besides, usually the lenders require the students to sign the agreement together with a co - signer (usually one of the parents). In the case of non-payment the cosigner becomes responsible for the repayment of the debt.
Below the main tips concerning the wise usage of the student credit card is described. First of all, you have to pay all bills in time and keep all rules to avoid the penalties. Some lenders can even increase the level of interest rate in the case of delinquency. Besides, pay your attention on the purchases and services you pay for. If there are some unnecessary expenses, avoid them or try to use cash. In this case you will better control your incomes and expenses. If you will be careful, your debts will not ruin your goals. Manage your credits. And lastly, do as much as possible to prove the lender that you worth the trust.